Five months after purchasing the domain name dirt.com for $100,000 at Go Daddy auctions in Sept. 2010, the buyer who goes by the handle yessman on Flippa, has released a teaser trailer for the website.
The domain name is still up for sale at Flippa and yet, construction of the website is still underway.
I’ve received a number of tips from readers about Dirt.com. One rumor was that NewsCorp might purchase or partner with Dirt.com. Another reader tipped me off that Dirt.com had staff at Sundance trying to get access badges.
Whatever the case, it’s clear that Dirt.com is using a variety of channels for marketing and has big plans for their celebrity gossip website.
It sounds like a pretty wild rumor, and for now that’s all it is.
A reader tipped me off that the owner of Dirt.com, who put the name up for auction on the internet site Flippa for $3MM, might be entertaining a deal with NewsCorp – who is considering selling off its social networking site MySpace.
The story of Dirt.com started back in September 2010, when the domain name sold on GoDaddy for $100,000.
For months, the owner displayed a “Coming Soon” page, until December when the name went up for auction on Flippa. Despite the big payment and obvious construction of a website, the owner decided to auction the property, because in his own words: “I recently sold my Company and have decided to take a hiatus for thirty-six months to travel and focus on Foundation and Charity Work.”
Whether the owner was creating buzz for the pre-launch of Dirt.com or whether he truly was headed off to do charity and fundraising (as I wondered back in December), whatever the case is now it seems he has definite plans for a website and charity work – that is, if the domain name doesn’t sell for $5,000,000 – 50 times its purchase price.
Since so many people are watching this domain sale on Flippa, and there has been so much speculation and rumor on the internet in various forums and Blogs regarding the sale, it may make some sense to lay out a few discussion points about the domain, the site, and the sale at this time.
1. As mentioned in the description, I am an Internet Entrepreneur. I have just sold my Company and the reason that I wish to sell the dirt.com domain name is that I am planning on taking a hiatus for thirty-six months to travel and focus on my Foundation and Charity Work.
2. Thankfully, I have no financial need to sell Dirt.com at this time. However, due to the recent interest in Dirt.com from buyers throughout the world, it would have been foolish for me not to test the waters in selling the domain name versus building the business I had planned for it. This is why I have placed the domain up for sale on Flippa. Any good business person would look at all available options, and that is exactly what I am doing here.
3.. The business that I have planned for Dirt.com is to build the World’s Largest Celebrity Gossip and Entertainment Site. If I do not sell the domain, I will proceed to build the site out as I continue my Charity Work. I will also donate a portion of the dirt.com advertising proceeds to the ASPCA, The Humane Society, and PETA.
4. I am willing to sell the domain now as there is an opportunity cost in building out the World’s Largest of anything. If I do not get a buyer now, I will proceed to build out the Site, and sell it down the road after it is has reached the metrics in my business plan. I will continue to do my charity and foundation work, but will obviously have to spend time, energy, and effort, building out Dirt.
5. At that time, the value of the site with be more than the 5 Million asking price today…Substantially More. There currently is a site up where the domain exists. Already, people in Hollywood are talking about Dirt.com, and we haven’t even gotten busy yet! Weather i sell it now for the 5 Million asking price, or sell it later for much, much more, is simply a matter of what is called “Opportunity Cost”. Any serious Entrepreneur following this sale will understand the concept.
6. It has been reported throughout the web that the new owner of Dirt.com (me) purchased the domain for $100,000 just a few months ago.
Is the site worth 50 times the purchase price (if the reports are true)?
The answer is best served with a question…
…Name a more brand-able domain name available in the world right now…especially in the Entertainment Space (Which happens to be a Multi-Billion Dollar Space)…YOU CAN”T
If the rumor of NewsCorp partnering or buying Dirt.com becomes reality, it would be interesting to find out whether its listing on Flippa had anything to do with it.
It would be even more interesting to see the final sale price.
In a previous blog post, I reported about the auction of Dirt.com on Flippa for $3MM. The listing seemed to be fueled by the owner’s desire to travel and focus on charity work, after reportedly selling his company.
According to the listing description by the seller Yessman: “I recently sold my Company and have decided to take a hiatus for thirty-six months to travel and focus on Foundation and Charity Work. The recent interest in Dirt.com from buyers throughout the world has peaked my interest in selling the domain versus building the business I had planned for it.”
Dirt.com site unveiled
The Dirt.com site was recently a “Coming Soon” page that hinted at a celebrity gossip web site, similar to TheDirty.com (a popular celebrity gossip blog with visitors in the hundreds of thousands).
In the last few days though since the listing on Flippa and my story here, the owner has unveiled a web site on Dirt.com (screen shot above). The site looks, and sounds somewhat similar to CelebrityGossip.com (a property owned by domain development company: First Beat Media). Only instead of dirt being dished every 5 minutes as it is on CelebrityGossip.com, it’ll be served up every 15 minutes on the Dirt site.
Unrealistic Sales Expectations?
The domain Dirt.com was purchased for $100,000 at GoDaddy auctions in September, and the owner is trying to flip it with a buy-it-now price of $5,000,000.
I’m not sure if the owner has unrealistic expectations with the multi million dollar price tag, but according to the discussion thread on Flippa, he even argues that Dirt.com is more valuable than Loans.com (a domain name that sold in 2000 for $3 million).
Whether the owner is creating buzz for the pre-launch of Dirt.com or whether he truly is headed off to do charity and fundraising, from the angle of a domain investor, it would definitely be amazing to see the name sell for anything in the high six figure or low 7-figure range.
Dirt.com, arguably the most brandable domain name available for sale today?
Some investors in the domain community might argue otherwise, but for the owner of Dirt.com, they’re arguing: “Dirt.com has unlimited possibilities, and can reach across multiple verticals. Whether you have the next Facebook, next Groupon, next TMZ, next Green or Solar Technology Company, next Wikipedia, or the next big new idea, Dirt.com in the right hands can virtually ensure your success.”
The owner had plans for unveiling a celebrity gossip site, but according to the sales description on Flippa, they’ve had a change of heart:
I recently sold my Company and have decided to take a hiatus for thirty-six months to travel and focus on Foundation and Charity Work. The recent interest in Dirt.com from buyers throughout the world has peaked my interest in selling the domain versus building the business I had planned for it. If you are interested in owning Dirt.com, or partnering for the next big thing, I am open for discussions.”
Whether it sells or not, the listing is certainly going to attract attention with its high price. Since being listed yesterday, comments are starting to pour in, and with almost 4 months left in its listing, the thread is sure to become long. Right now the seller is debating with commenters over which domain name is better: Loans.com or Dirt.com.
As one reader by email points out, Dirt.com could be seeing an uptick in traffic itself, due to the popularity of TheDirty.com, a gossip and satire web site with monthly traffic that numbers in the hundreds of thousands.