Multi-millionaire domain investor Rick Scwhartz whose biggest publicly reported sale to date is Candy.com for $3M+Equity, revealed earlier today that he hand-registered nearly 3,000 (2,840 to be exact) domain names in 2010 – his most in a single year since he first started buying domain names in the early nineties.
For those of you not familiar with the term “hand registered”, basically, it means buying a domain name that isn’t registered and is available to anyone who wants it. Instead of paying hundreds, if not thousands of dollars later on the aftermarket, hand registered domain names can be purchased for around $10.
About 99% of the names Rick expects won’t bring in any significant revenue, but forty of the domain names he projects will be longterm investments that will rake in $4 million in the next 10 years.
2800 of those babies may expire or have no value because it was time related or become Pigeon Shit. But the 40 others, I expect they will rake in some $4 Million over the next decade and provide a nice return. I know many of you don’t like or agree with this approach. Ok. But it is tried and true and it works for me because I have patience and look at things with an eye that combines the evolution of business with the evolution of consumers and then factor in plain old evolution. Success breeds more successes and more folks looking for success.
And 2010 isn’t over yet. Rick hand registers domain names on a daily basis looking towards the future. Rick writes: “They won’t have much value in 2010. But come back in 10 years.”
How these 40 domain names will bring in $4 million in profit, is not known. It’s a statement that many won’t believe, but if anyone can do it, Rick Schwartz can. Remember the story of iReport.com – Rick Scwhartz sold that name CNN for $750,000. He originally hand registered the name iReport.com for “$70 to $100.”
Read more about the 2,840 hand registered domain names by Rick Schwartz on his blog.
Rick Schwartz has inked some lucrative domain name sales, but as he wrote earlier today on his blog: “In the days ahead I will post about the seeds of my first NINE FIGURE deal. Even 50% of the choir won’t see it or believe it. But at least they know not to laugh.”
Though it can’t be confirmed until the transaction is completed, Rick Schwartz has a reputation of being a straight shooter, and when he says something will happen, people and critics should listen.
Technology blogs like TechCrunch haven’t picked up the story, but you can bet they’ll be all over the sale when it happens.
Rick Schwartz, who sold Men.com for $1.3 million, Candy.com for $3M+Equity, and iReport.com for $750,000, also shared insight regarding the negotations behind his past dealings (which include just 15 domain name sales).
iReport.com was one of my best sales. It took about 6 months to complete. Their opening offer was $10,000. I said no to CNN many times on the way to a $750,000 cash sale. The biggest sticking point, making it public. They did not want to be laughed at for spending so much for a domain name. I assured them that would not be the case.
After a few meetings, they gave in as I would not sell without that single concession. It was worth another $750k to me in publicity and to build future sales on. This domain was the epitome of the Internet. A soapbox like no other. Today, iReport.com is in every country in the world and is one of the most recognized citizen journalist sites ever. The sale that keeps on giving to me and everyone else in the industry.
To put things in perspective, a nine-figure deal means a minimum of $100 million. Is Rick Schwartz planning to sell one domain, part of his portfolio, or his entire portfolio? Is he crafting something entirely different?
There is more to this amazing story and the past sales of Rick Schwartz, so keep reading over at Rick’s Blog as the story develops.
Rick Schwartz sold the domain name iReport.com to CNN for a whopping $750,000. The URL now re-directs to ireport.cnn.com
While the amount of the price tag for PunchBowl.com sold by Rick Schwartz is undisclosed, it is almost certain that the final sales price is a multiple 6 figure deal plus other considerations.
Multiple 6 figure deal + other considerations likely means some sort of long term deal that includes a one time payment and recurring paychecks based on company profits – similar to the deal he brokered for his Candy.com domain name which sold for $3 million plus other considerations.
Rick Schwartz received his first dividend payment from Candy.com this month, though not his biggest check to date, with Candy.com sitting nicely atop of the Search rankings and enjoying type in traffic, if the terms of dividends are for years down the road, his dividend payments are certain to improve.
In the not too distant future I will be announcing my 12th domain sale is PunchBowl.com. Another multiple 6 figure deal plus other considerations. There should be a press release forthcoming and the buyer will decide how much of this to go public with as there will be a confidentially clause .”
While I may not always agree with Rick’s opinions and often have difficulty understanding the point of his blog posts – I always find his sales amazing.
Take a look at the press release issued earlier today.
Purchase and acquisition transaction of Punchbowl.com between Punchbowl Software Inc. and “Domain King” Rick Schwartz
Framingham, Mass., July 19, 2010 – Punchbowl Software, Inc. today announced the acquisition of the web domain Punchbowl.com from legendary domainer Rick Schwartz. Punchbowl Software Inc. develops web applications for start to finish party planning. Terms of the agreement were not disclosed.
With Punchbowl.com, the company plans to re-launch the domain as a leading consumer site for party and event planning. With new technology and a new look, the party planning site will be ready to launch in time for the holiday season of 2010. At Punchbowl.com, consumers will be able to plan a party from start to finish. The service will offer unique features including the innovative “Date Decider” which enables users to find the best calendar date for their event, beautiful Save the Dates and digital invitations, photo and video sharing after the event and other services that will help consumers throw an unforgettable celebration.
“A punchbowl is the center of any great party,” said Matt Douglas, CEO, Punchbowl Software. “The acquisition of Punchbowl.com will allow us reach new customers and expand our growing customer base.”
Rick Schwartz, aka the “Domain King,” is one of the early domain pioneers. Domains he has sold include iReport.com to CNN for $750,000, Candy.com to G&J Holdings, LLC for $3 million plus dividends, and Men.com for $1.3million back in 2004.
“During my domain career, I’ve sought prime, recognizable domain names that were easy to spell, easy to remember and could be developed into a major brand in their respective industry” said Rick Schwartz. “I was the first to see the intrinsic value in Punchbowl.com and knew that it could be developed into a huge brand in the social expressions and celebrations industry. I’m thrilled that Punchbowl Software will now develop the domain to its full potential.”
The party planning industry is ripe for a new entrant to provide a service for party hosts. Whether it’s a mom planning a birthday party for her five year old daughter, a friend planning a baby shower, a family planning their annual reunion, or the company Christmas party, everyone has multiple reasons to plan a party every year. As the industry moves from traditional offline sources to online, the market will consolidate. A new brand will emerge – Punchbowl.com – that will define this new industry.
Stay tuned for frequent updates and milestones for the new Punchbowl.com. While you can visit the Web site in its current appearance, the complete re-launch and re-branding will not be official until sometime this fall.
“Working with Rick Schwartz on this domain name acquisition has demonstrated to me that he’s not only a visionary in the domain industry, but he’s a savvy businessman who understands how to extract the most value from the Internet” said Matt Douglas, CEO, Punchbowl Software. “I couldn’t be happier to be the new owner of Punchbowl.com.”
About Us: About eRealEstate.com
Rick Schwartz, aka “Domain King” and “Webfather,” is the CEO, President and Cofounder of T.R.A.F.F.I.C. found at TargetedTraffic.com– the premiere domain conference for the domain industry. It is both the oldest and largest and attracts over 500 of the top professionals in the industry in what was a by invitation only event until 2009 and now open to all. As one of the early domain pioneers dating back to 1995, Rick has a knack for predicting big trends and getting it right. He may have been the first to recognize the value of “type in” traffic which is now commonly referred to as “direct navigation” — the most potent and targeted traffic on the net. Rick has a prime portfolio of some 7000 one and two word domains, and is considered by many to be among the leading experts on domain names, traffic, Web site flow and valuation. ‘http://www.erealestate.com & ‘http://www.ricksblog.com
Contact Info: Media Contact:
Matt Douglas
Punchbowl Software Inc. [email protected]
650 814 3393
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