Invest in a domain name or stick your money in the bank? Mark Horne says it’s an easy decision.
When I first heard that a company called UsedAirplanes, Inc. had purchased the domain name Flying.com for $1.1 million, I instantly did a double take. It turns out I’ve written about the company and its knack for using great domain names before.
I talked to UsedAirplanes, Inc. President & CEO Mark J Horne today to understand why he invested seven figures for the domain name Flying.com. Horne described the decision as a “no-brainer”.
“On an investment standpoint, if you had a million dollars cash right now, what do you do with it?,” asked Horne. “Stick it in the bank? You’d make $12,000 a year in interest on that money…you can’t stick it in the bank. To put it into an asset like this where I know the business well, it was a no-brainer.”
Horne said the domain will produce a great return, and the underlying asset has significant value.
The airplane business isn’t Horne’s first foray into online classifieds. Horne previously founded Usedboats.com, Newboats.com, and Yachtbroker.com, which he sold to publication in 2004. A good friend of his had success with used cars online. Horne understands the online classifieds business, and he’s also a pilot. So it made getting into the online aircraft sales business a match made in heaven.
“I was very excited about it because there are two things I’m passionate about: aviation and the internet. It’s nice to put the two together for me.”
Flying.com was purchased by another party last year. Prior to buying the domain name from that party this month, Horne had access to the domain name with an agreement similar to a lease.
Horne isn’t done acquiring yet; he’s looking to acquire more digital media companies and web sites. Since putting out a press release about the sale this morning, he said he already has some solid leads.