Sex.com sold for $14 million four years ago. Given the old adage that “the Internet is for p*rn”, many have thought that the domain names is indeed the biggest kahuna as far as domain names go but its owners have found out that it’s not really the case.
Site owner Escom is now letting go of the domain after not being able to pay its debts it incurred acquiring the world’s most expensive domain name.
The domain was registered back in 1994 by Stanford scholar and Match.com founder Gary Kremen. The domain made five million hits a day and generated $100 million a year in revenue for the first five years. It went on sale in 2006 when Escom bought it from Kremen.
It’s all about business models and strategies and a huge amount of luck. While many are still making huge dough on adult entertainment online, a $14 million domain name would need a huge amount of revenue in order to provide a decent return of investment. The business model, which involved content distribution deals including with establish publications like Playboy, never really panned out.
Source: Independent
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Tags: Bankruptcy, Domain Name, Domain Names, Internet, Sex.com