This business model may sound familiar.
The company that acquired IT.com for $ 3.5 million has a business plan that may sound familiar.
The main activity of Intis Telecom is SMS marketing. But he recently acquired it.com for $ 3.5 million on a payment plan. He paid $ 1.5 million upfront and is paying the rest over three years. (James Booth represented the seller.)
It.com, however, has nothing to do with SMS activity. The company offers subdomains like example.it.com, with an emphasis on action words like explore.it.com and Remember.it.com.
He plans to do this with a lot of other areas. In the past ten months, the company has acquired 10 ‘it’ domains in various extensions. But it.com is its biggest investment. Prior to this domain, the maximum he paid was $ 25,000 for it.kz. (This is the country code for Kazakhstan.) Update: The $ 25,000 was the most expensive this year. Last year the company paid $ 235,000 for it.co.uk.
Selling subdomains was CentralNic’s business model many years ago, although it focused on domains very similar to country codes, such as example.us.com.
A challenge for companies using a name like this is that they are not regulated by ICANN. There is no recourse if the company that owns the second-level domain decides to stop offering the service. CentralNic ended up doing just that with a number of domains. It’s also worth noting that CentralNic offered their domains when there was much less choice for domain extensions.