The domain name king sells another domain name,and profit is 10 million US dollars!

Industry Information 12 Oct 2023 02:12:31 PM By:DN domain name editor
Abstract:

Rick Schwartz said, "Just this past Friday, they told me the final closing number is $6.8 million. An hour later, I received another email. By the way, some funds will be held in escrow for 90 days.

Recently, the domain king, Rick Schwartz, successfully sold the domain Candy.com for $7.1 million! The buyer is the cold chain logistics company, GreenRabbit. Previously, the domain was transferred in early June 2009 for $3 million in cash plus a 5% equity stake to a candy company. Over 14 years, they've turned a $3 million investment into $11 million with the Candy.com domain!

The domain name king sells another domain name,and profit is 10 million US dollars!

Image Source: Candy.com

Candy.com was registered in 1994, making it a 29-year-old domain. "Candy" is a high-frequency word, attracting significant natural traffic. Moreover, candies have always been one of the most beloved snacks for children, creating a massive market. It's a perfect fit for a candy company.

The domain name king sells another domain name,and profit is 10 million US dollars!

Image Source: GreenRabbit.com

GreenRabbit.com has stated that they've sold their company to Performance Food Service, which ranks 91st on the Fortune 500 list of top publicly listed companies!

The domain king, Rick Schwartz, mentioned that three years ago, an investor came in, and he sold part of the Candy.com stocks for slightly over $1.7 million. He held just over 11 million shares and had faith in these two young men from the beginning.

Rick Schwartz said, "Just this past Friday, they told me the final closing number is $6.8 million. An hour later, I get another email. Oh, by the way, there's some money in escrow for 90 days. Your numbers will be over $7.1 million once released. So, the total value I received for selling Candy.com is over $11 million!"

The domain name king sells another domain name,and profit is 10 million US dollars!

Image: Joe, Rick Schwartz, Greg

They used Candy.com as a stepping stone, breaking into the heart of the candy industry. As the company grew, their scale expanded.

Following this expansion, they rebranded themselves as GreenRabbit.com. This allowed them to sell Candy.com for several million dollars more than they initially paid, using those funds to further develop the company, all without needing external financing.

In the market, there are many such cases where companies and individuals purchase domain names, use them for a period, and then sell them at a high price when the market matures:

1. Voice.com - In 2019, Block.one acquired Voice.com for $30 million for its blockchain social media project. The domain was initially held by MicroStrategy and used for its Voicemail.com website.

2. Sumo.com - Sumo.com was initially the domain for SumoMe, which later rebranded as Sumo. The sale price for the domain Sumo.com is undisclosed.

3. Zoom.com - Video communication giant Zoom Video Communications initially used Zoom.us as its domain. They later acquired Zoom.com, further enhancing their brand recognition.

These cases demonstrate that buying domains and selling them at a higher price after market development is a potential investment strategy, especially when the domain holds unique brand value or broad market appeal. However, successful cases are relatively few, requiring careful consideration, market insight, and timing.

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The domain name king sells another domain name,and profit is 10 million US dollars!