DotSauce is reporting that the domain SEO.com sold June 15th for $5 million to Internet entrepreneur, Mike Mann:
Yesterday Mann announced the purchase of SEO.com by WashingtonVC for $5 million as well as the formation of an SEO firm led by Dave Bascom. The company is formerly known as Web Targeted, search engine optimization company located in Utah. Jay mentions this new domain will give them a huge advantage over the fierce competition of Search Engine Optimizers.
Are the initials for Search Engine Optimization really worth that much?
As the snippet above mentions, the expected value comes from the ranking advantage they hope to gain from using this domain for a search engine optimization business. By ranking high for that term, they should gain both targeted traffic and credibility as an SEO business.
However, to me this is a ridiculous marketing strategy for an SEO business. Why? Because proving you can rank high for the term “SEO” by using the domain “SEO.com” does nothing to build confidence in prospective clients who hope to rank high for keywords that aren’t in their company’s domain name.
Is Amazon.com more interested in ranking high for “Amazon” or “Books?”
Is Dell.com more interested in ranking high for “Dell” or “Computers?”
Is BMW.com more interested in ranking high for “BWM” or “Cars?”
Proving you can rank high for competitive terms that ARE NOT in your domain name gives customers confidence that you can do the same for them.