Dell decides it should use the domain name Adamo.com for its new computer.
When Dell (NASDAQ: DELL) launched its sleek new laptop called Adamo it overlooked one important marketing issue: it didn’t own the domain name Adamo.com. As we reported last week, the domain name was owned by Tucows (AMEX: TCX) in its Yummy Names organization.
Apparently Dell saw the error of its ways. Domain Name Wire has confirmed that the computer manufacturer purchased the domain name, which now resolves to Dell’s Adamo site.
Before launching someone representing Dell says it approached Tucows about buying the domain name. Tucows offered a standard $750 monthly lease but was rebuffed.
We see big companies launch products without obtaining the requisite domain name all the time. By buying the domain after the fact they usually end up having to pay more, such as when Apple belatedly purchasing iPhone.com. Hopefully the marketing departments at Fortune 500 companies will start working “obtain domain name” into their product launch steps.
so what’s the answer to the question on everyone’s mind ?
Adam,
For the answer:
They were willing to rent the name $750.
To generate $750 of monthly interest at 4% (average deposit rate) you need to place $750 * 300 = $225k into a bank account.
This simply means to earn at least the SAME recurent revenue selling the name they should have sold the name for this amount, but because they turned down their rental offer then I guess the punition has been a higher price!
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Yes buy names before launch a new product / service / brand is a priority.
Francois, I doubt a 4% rate would apply to a high risk asset like domains. But I suspect the price was six figures.