Twttr got smart in a hurry — and got lucky.
Today Robin Wauters wrote about how Twitter bought the domain name Twitter.com for $7,500 in 2006. The company launched with web 2.0 name Twttr, but it was always pronounced Twitter.
In this case the company got smart acquired the domain name. It was also lucky that the domain’s owner didn’t hold out for more money. But can you think of all the good startups with web 2.0 spellings that balked at paying such a small sum, only to regret it later?
Most startups that choose a web 2.0 name end up paying dearly in the end. But they eventually get it. Think Flickr.com with Flicker.com and and De.lico.us (was that even where you put the dots in that stupid name?) with Delicous.com.
Barry Lebovitz says
@amit your website contains the word “taint” please fail.
@andrew that was in 2006, but I still think if the company wasn’t around that the domain would fetch a very similar price on the aftermarket.
jblack says
The real business question though, given its revenue challenged model, has Twitter actually gained that 7k back? Or is it just assumed, Wall Street style, that Twitter’s supposed “valuation” more than covers that 7k? Regardless of the tangible response, this kind of inflated balloon, oh so credit-bubble like, Schilling-esque bag-of-smoke described model of “value” is not the kind of example the small-average domain name holder should hold in high regard. Let alone look in awe at.
Andrew Allemann says
@ jblack – sure, look at their search deals with Google and Microsoft for the revenue.
Clay says
Not only was the period in another place, it had another ‘i’. It’s “del.icio.us”. Happily for them, “delicous.com” resolves to “delicious.com”, too.
Sean Patrick says
I’m a little late on this comment, but another great example is ImageShack.us (which Co-Founder was early Google employee who did very well) waiting almost 5 years to acquire ImageShack.com for undoubtedly a huge amount.
Rob says
Back in the late 90’s I gave away a 2 letter domain name in order to close a deal. It took about 2 years for me to realize what I had done and the nightmares to set in.