In a blog post today the on WSJ.com, they rip into the buyer of color.com and colour.com who spent $500K to obtain both domains:
“The founding team, regardless of their previous successes are showing a general lack of creativity and a misunderstanding of the marketplace in which we currently live.”
“This is evident most clearly in the fact that they paid $350,000 for the domain name color.com and another $150,000 for the domain name colour.com. That’s right, half a million dollars for two domain names.”
“It’s 2011 where people know, understand, and expect that domain names will be taken. We just don’t care about them anymore, and if your product is awesome we’re able to find it.”
“I just registered two domain names over at GoDaddy: http://mycolorapp.com and http://mycolourapp.com. I paid $24.37, including tax, for both of them.”
“Are we really to believe that color.com and colour.com justify spending an extra $499,975.63?”
So following the advice of the author a company raises $41 million and then should go out and hang register a domain for $24.37, a domain like mycolorapp.com.
How many people would remember the product as mycolor.com or colorapp.com and what if another company came along and did buy color for $350K and had a different app or a competing product , how much traffic would mycolorapp lose over the next 10 years to color.com?
How many sales would be lost.
Moreover how much FREE publicity has the buyers of color.com received from their purchase?
A quick check of the Google news feed or color.com found around 500 articles written about the purchase of the domain, the app, the company.
What is a story in Google news worth on average?
$500? each $250 each $1,000 each?
If there is a number that can be attached to the number of Twitter followers and Facebook Likes there is certainly is a number that can be placed on stories published about a product, about a company.
Of course not just publications like “john’s blog” wrote about the purchase and app, but TechCrunch.com and WSJ covered it too.
There is an old expression when it comes to getting a lot of press to cover your story that goes something like
“you can’t buy that kind of good coverage”
But in 2011 you can.
You just can’t get it by spending $24.37 at Godaddy.
Yes its 2011 and the best expenditure that company will ever make is the 1% of funding they just shelled out to buy the domains they will do business under forever.