How the domain name PrivateJet.com sold for $30.18 million?

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Privatejet.com which was owned by “Don’t Look media” has sold its domain to “Nations Luxury Transportation, LLC” for a whopping $30.18 million in cash and stock.

Don’t Look Media, LLC provides Internet monetization services. The Company owns and operates intellectual property assets, including domain names, technology patents, trademarks, copyrights, telephonic properties, and exclusive licensing rights.

The company registered the domain name in August 1996. In those times it was cheaper to register a domain name just at 100$ per year.  Don’t look media was very conscious while selling the domain name which can be seen, as in the reports published, it was stated that the company rejected few offers of worth Millions of cash.

The company knew that the domain was worth more than the offers made by other companies and so, they waited for a few months until the right offer came. They earned huge profits by selling it for $30.18 million USD.

According to a press release, “The agreement has been approved by the boards of directors of both Nations and Don’t Look Media Group with an official launch for the new website in April of 2012.”

The users who search for privatejet.com on their search engine will automatically be able to view the new link which is- www.flyvictor.com

The new company which acquired the domain, Nations CEO, Kenneth Starnes said in an interview-

Privatejet.com is a great and valuable asset and by applying correct methodology and technology it will help them in revolutionizing the super luxury segment of Private Jet Services.

He also added that  “Together both assets which mean the domain and their services will create the future of real-time private travel so people can easily stay connected to family, friends, clients, and colleagues anywhere in the world in the most efficient manner possible.”

The Co-founder, Randall Da Costa on being asked about Privatejet.com said that,

Privatejet.com will provide 24/7 round the clock information about everything related to luxurious private jet lifestyle and will also make sure to entertain customers of private jet all around the world, by providing the latest updates and packages.

CEO of Don’t Look Media in repose said that- it took much effort to sell the domain to right people at the right price which the domain deserved. And he added that they look forward to developing the Private jet industry which is ready to face new technologies and more efficient process.

 

Why are Domain names being sold at a high price?

You must be wondering, on why the domain names which are so simple are being sold at an exorbitant price. The reason is hidden in the question itself, as you see the domain names are so simple and the keyword of search is itself the domain name, For example- If anyone types Private jet in search engine, then in that case, on top of the search results the website name- Privatejet.com will be visible and eventually people who want to book a private jet will access the website.

That’s what many giant companies need, once their website is on top of search results the chances of the customer accessing their services will increase and as a result of their revenue and profit automatically grows.

Below are few other reasons on why the domain names are being sold at a high price-

  •    The domains have healthy traffic statistics, in a way, a lot of people access the website and that increases the rating of the website.
  •    Keyword attracts customers
  •    Easy to search- The website name resembles the product name.
  •    No need to advertise-: Companies don’t have to advertise as the website name advertises itself.

Domain authority-

In the competing world, it has become very much essential to be on par with other companies in order to sustain and grow in the corporate world. Many companies are focusing on strengthening their Domain authority.

 

What’s Domain Authority-

Domain authority was created by Moz of Saas Company, with an aim to establish a rating system by which websites can be rated on a scale of 1-100. Of which 1 would mean worst and 100 best. If a company gets a higher rating, say 95 when compared with competitors it would mean that the company is performing excellently, but if the rating goes to 50 then it means the company has to improve a lot.

  •    Domain authority ranking helps in knowing the position of the website in the search engine’s search criteria.
  •    Helps in attracting sponsors
  •    Once the website attracts a lot of customers, people will be eager to sponsor contents.

 

SEO

Search Engine Optimization is another part in which the domain plays a crucial role. Optimizing the domain name is an integral part of any business, as people get attracted by the domain name. The similarity of product name and website name increases the likelihood of people opting the specific domain.

 

What are Backlinks?

Defining backlinks as per Moz, “Backlinks also called “inbound links” or “incoming links,” are created when one website links to another. The link to an external website is called a backlink.”

Many people have this question after accessing privatejet.com that another website is being displayed with an address- flyvector.com. The reason is that the company has interlinked its current website with newly acquired website. The reason behind interlinking websites is to divert the customers to the new business.

 

Benefits to the new company

The company, Nations Luxury Transportation earned a lot of money by acquiring not only the domain name but also by acquiring the potential customers of privatejet.com domain. The main perk of purchasing the domain was that the company didn’t have to put effort into attracting new customers, the existing customers were redirected to a new website.

The advertising costs, the costs related to hiring people to work on creating the website and the time spent on sending information to sponsors for sponsorship was saved.

New Feature- To adjust according to latest trends, the company started a new feature by which the customers would compare prices of other private jet companies and that of theirs and choose which they would find affordable and satisfactory. This was the USP (Unique Selling Point) for the company which helped in increasing the Domain metrics.