An indication of the clamor and buzz around CBD at the moment is the news that a particular CBD-oriented internet domain name has retailed for a relatively high amount of money.
The sale of a domain name, where a large amount changes hand, says a lot about the confidence that exists in the future success of a particular product or service, which is why the sale of the domain name CBDOil.com this week, will be seen as significant for the industry.
The domain was sold for $500,240 in what could be one of the three biggest publicly reported domain sales so far in 2019, irrespective of sector.
DomainName Journal reports that, “This was a case of the perfect end user acquiring a category-defining domain that will give his company a big leg up on its competition.”
The lucky buyer? Las Vegas based buyer Joe Vargas, the Founder and CEO of a booming online business at BuyLegalMeds.com that also has three physical storefront locations in Las Vegas.
Vargas told the DN Journal:
“I’m pretty familiar with how the internet works and why domains cost what they cost. When I was contacted on social media by the seller about the domain CBDOil.com being for sale, I knew that if I could get it for under a million dollars, I would have a good deal on my hands.”
“Personally for me, I judge a domain based off the industry it’s referring to. The value of the industry. The CBD oil industry is exploding right now and to have the authoritative domain for the entire industry would be powerful. Since CBD.com is taken by a Christian Book Distributor, they wouldn’t sell it to me last year, so this was the next big domain for the industry with equal authority.”
There is plenty of precedent for a company judiciously acquiring the right domain names and positively impacting their business.
Vargas cites one such example as CarInsurance.com, which was sold for $49.7m.
“The value of the insurance industry is $7trn, so when you put into perspective searching for “car insurance” and CarInsurance.com is first on the first page on Google, there’s extreme value there.”
“So $500,240 for a $2bn industry that would be worth 100’s of billions more in a few years and possibly trillions in the future, I got an amazing deal and I would have paid more. Don’t tell the seller that!”
The purchase of the domain came about fortuitously for Vargas, when his existing company’s (BuyLegalMeds.com) social media manager tipped him off that a Twitter follower had informed him that their friend was selling the domain.
Contact was made, and after due diligence, and Escrow utilised, the domain was acquired
“I assumed immediate ownership from Escrow.com less than 2 weeks after we started negotiating.”
“CBDOil.com will be a marketplace, a hub for great content and a place people can trust to buy highest quality all-natural medicine and learn about how cannabinoids can help their ailments. The Amazon of CBD with a lot of education.”
The expensive acquisition of the domain name CBDOil.com is a positive development for CBD, indicating the health of the sector. It’s also hugely promising for the new owners, who can expect to generate a lot more revenue through holding such a valuable piece of Internet real estate