Insure.com sold its corporate name and the domain for a whooping 16 million dollars. The company will be renamed Life Quotes. The company had acquired Insure.com for $ 1.6 million in 2001. Insure.com is a publicly traded company listed on NASDAQ.
A company known as Quin Street acquired the domain. The same company has earlier paid $18 million for Internet.com and related assets. Quin Street is an online marketing company that helps business organizations achieve their marketing goals and generate sales leads.
This sale may be the highest recorded price for any domain till date as the company is still retaining its other assets. Earlier in 2006, Sex.com reportedly sold for $12 million which was the highest until now.
The name change will definitely affect the company. First, the company will have to cope up with the name change. Secondly, it will lose all the backlinks and search engine rankings.
They may be launching a new product or something similar that mandated them to rebrand themselves afresh.
Insure.com is a type-in domain which means a lots of potential customers will have reached the site just by insure.com in the browsers.
Without doubt, 16 million dollars is huge amount for the domain. It is also a good return of investment for a domain they acquired for 1.6 million dollars in 2001.
The company expects to see a 10 to 15 per cent drop in revenues over the next six quarters. To will definitely take a lot of investment to regain the lost traffic to bring in new customers.
[More information: ElliotsBlog.com]