Web Domain Sold For $2.6 Million - InformationWeek
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10:31 AM
50% Web Domain Sold For $2.6 Million

The domain owner worked with Sedo, an online auctioneer of domain names, to broker the deal.

Chris Clark doesn't need any venture capital to fund his Internet protection startup: He just sold his domain name for $2.6 million.

Clark had the presence of mind back in 1994 to register the domain, and he's paid a $20 fee annually to keep it.

Clark had some small success with the name, based on a pizza delivery and advertising site he started with a friend. When they quickly turned the profit corner with that business, Clark started thinking about selling the domain name.

He solicited bids by posting a "for sale" notice for the domain on the site. When he received six-figure offers, he decided to contact Sedo, an online auctioneer of domain names.

The first bid was for $100 on March 27 and interest grew in intensity as bidding passed the $2 million mark, which Clark had set as his lowest price for the domain. It hit $2.6 million last week.

"It's crazy, it's just crazy," Clark told the Baltimore Sun. "That amount of money is significant. It will make a significant difference in my life, for sure."

Clark noted that the funding could help him with his latest venture, Mindstream Software, which provides Internet protection products. The company is marketing a hardware device that tracks Internet traffic. The device, which starts at about $5,000, has three versions covering small businesses all the way up to enterprises. isn't the most costly domain site ever sold, but it is in the top ranks. While most sites considered valuable enough to be auctioned sell for around $2,000, sold for $12 million in cash and stock and sold for $10 million.

According to media reports, Sedo sells as many as 3,000 domain names per month and collects a 10% commission on winning auction proceeds.

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