How big companies drove domain prices sky-high – and what you can learn from it

Choosing a domain name might seem like a straightforward decision: you find a suitable name, check its availability, and register it. However, purchasing a domain is often a complex strategic move that can cost businesses massive amounts of money. In this blog post, we’ll explore how some well-known companies ended up paying millions for the domain names they wanted – and what lessons we can all learn from their experiences.

Tesla’s Long-Awaited Tesla.com

Most people immediately associate the name Tesla with Elon Musk’s electric car company. However, for a long time, the company didn’t own Tesla.com. Instead, potential customers were directed to teslamotors.com. Why? Because the tesla.com domain belonged to a Silicon Valley engineer who had registered it back in the 1990s.

As Tesla’s popularity and sales grew, it became increasingly clear that having the short and memorable Tesla.com was crucial for the brand’s image. Rumor has it that the domain acquisition cost somewhere between $5 million and $11 million, making it one of the most expensive domain purchases ever. This case highlights the importance of securing your brand’s domain name early. If Tesla had acquired Tesla.com from the start, it would have saved millions in the long run.

Alphabet’s Unexpected Choice: ABC.xyz

When Google announced in 2015 that it was restructuring under the name Alphabet Inc., many assumed the company would also own the alphabet.com domain. However, it was already owned by the car manufacturer BMW, and Alphabet instead opted for abc.xyz.

This decision brought massive attention to .xyz domains. Domain speculators quickly started registering .xyz names in bulk, hoping to sell them at a premium later. For regular users, this meant that previously affordable .xyz domains suddenly became much more expensive. Alphabet’s choice shows that even the world’s biggest tech companies don’t always get their desired .com domain. It also demonstrates how a single corporate decision can turn a relatively obscure domain extension into a highly valuable and sought-after asset.

Block.one and the Record-Breaking Voice.com Purchase

Blockchain company Block.one made waves when it was revealed that they had purchased voice.com for a record-breaking $30 million to use for their new social media platform, Voice. This was one of the highest publicly disclosed domain sales in history.

The deal sparked discussions: why would a company pay such an astronomical sum for a domain name? The answer lies in branding, global recognition, and prestige. Voice.com is short, easy to remember, and internationally appealing – all factors that make certain domains extremely valuable.

Qihoo 360 and the Numerological Appeal of 360.com

Chinese cybersecurity company Qihoo 360 originally used the domain 360.cn, but as the company expanded internationally, the .cn extension became a limitation. They realized that 360.com would be a much more prestigious and globally relevant domain. In 2015, they purchased 360.com for an estimated $17 million, making it one of the most expensive domain sales at the time.

This purchase also triggered a surge in demand for short numeric .com domains, especially in China, where numbers often hold deep cultural significance (such as lucky numbers). Once again, this case illustrates how a single company’s decision can significantly impact the entire domain market.

The Rise of Trendy New Domain Extensions: .IO and .AI

Beyond individual corporate acquisitions, the domain market has also been shaken up by the rise of trendy new domain extensions, particularly .io and .ai. Initially, these domains were available at relatively low costs, but as blockchain and artificial intelligence startups started favoring them, their prices skyrocketed.

When a well-known startup registers a name like coolbrand.io or future.ai, the demand for similar names explodes, and domain speculators start securing popular keywords in these extensions. Today, both .io and .ai domains have significantly higher registration costs, and on the secondary market, they can sell for tens or even hundreds of thousands of dollars.

What Can We Learn from This?

There are several key takeaways from these high-profile domain purchases:

1. Plan your domain acquisition early. If you’re building a brand and aiming for international recognition, securing your ideal domain as soon as possible is crucial. Delaying this could mean someone else registers it first and later demands an outrageous price for it.
2. Protect your brand by registering multiple domain extensions. If your business strategy requires it, consider registering your brand name across different extensions to prevent competitors or domain speculators from acquiring them. Whether it’s .com, .co, .io, or .ai, proactive protection can save you from major headaches down the road.
3. Stay informed about domain market trends. When a major company starts using a particular domain extension (such as .xyz, .ai, or .io), it can rapidly drive up prices for all domains under that extension. Acting before the trend takes off can be a smart move.

If you want to secure your brand’s domain name today, check its availability using our domain search tool. Also, check out our blog for insights on when to register a umlaut domain with special characters and in general, what is a doman and why do you need one.