The information in this podcast will help you sell your domain names.
Some big news this morning was that SumoMe purchased Sumo.com and will rebrand.
On a podcast published today (embedded below), Sumo.com CEO Noah Kagan explains why he was willing to pay so much for the domain. He used to not value domain names that much, but explains why he changed his mind and now realizes the importance.
He also explained how, as a percentage of revenue, it really isn’t that much. They paid $500,000 up front and will pay the remaining $1 million over 5 years, so just about $16,000 a month. month. The company spends $50,000 a month on servers alone. $16,000 a month is a small price to pay for your entire brand!
Frankly, this podcast will make great sales material when someone wants to buy your domain but isn’t willing to pay much. Noah explains how much value it adds to his company, and how we won’t kick himself down the road because someone else bought the domain.
[Update: I just saw that DomainSherpa has a good interview with Noah as well. You can watch it here.]