Company That Bought Brand.com For $500K Sells It For $300K & Files Bankruptcy

[Arpit131]

According to technical.ly, after spending $500,000 for the domain name Brand.com, the company formerly known as Reputation Changer filed for Chapter 7 bankruptcy last month.

Technical.ly says according to the filing, Brand.com sold its domain for $300,000 .

The domain name is currently in escrow.com at Igloo.com

Technical.ly also reports that the company sold the domain name NHQ.com, the domain for its content marketing identity News Headquarters, for $10,000.

The Brand.com Twitter account has also been sold.

“The company owes more than $1.9 million to nearly 70 people and organizations — including $52,000 to former landlord Keystone Property Group, nearly $200,000 to services like Salesforce, LinkedIn and content recommendation startup Taboola and more than $200,000 in pending lawsuits from former employees and clients. It reported a total of $104,000 in assets, the bulk of which is office equipment like computers, furniture and phone systems.”

“The company reported making $11.8 million in revenue in 2013 and $8.5 million in 2014.”

Source: TheDomains

A company with such high revenue, going bankrupt the very next year is something that makes me wonder! If you don't innovate, you are lost! It makes me remember the case of Nokia, who did not adopt Android in the very beginning. We all know what happened!
If you are a tech company, always focus on new technology!!

What are your views on the topic?
Do you also consider the sale of Brand.com too cheap at $300,000?

 

[DomainComplex]

Damn dot com

 

[Weber]

zyx wielding it's magic power.

 

[Ms Domainer]

How do you spell C-a-y-m-a-n I-s-l-a-n-d-s???

 

[silentg]

They'll need to fix their reputation now.

 

[Dorkside]

$500k was a lot of money to spend on a dot com without a tonne of development potential, even if it was a nice one word domain.

I think it's still overvalued at $300k.

 

[xull]

I think its undervalued. 300k for singular dictionary word, 20 years of age and a popular word too. Suitable for usage like advertising agency & corporate branding studio to name a few.

 

[James Rodman]

lol they sold a developed LLL.com for 10k? perfect example of how some companies dont know the value of domains. you can rip them off easily if you find one

 

[Arca]

From the article:

What I learned quickly was that you should never build a business model that is dependent on another platform, especially an SEO play on Google’s platform. e.g. Brand.com’s success was dependent on Google’s algorithm. Business was great until Google’s engineers decided that they would change their algorithm [to] adversely [affect] many of the tools we used at the time to run ORM campaigns.

Not the first company to learn this the hard way... Never rely on Google for your traffic

 

[Skyvisum]

Name was too cheap for $300,000.I would rather get same amount.If properly handled by a top domain expert .Name would surely go up to 7 figures.Companies should learn to move with innovation and not be left behind.Just like Nokia's mistake.

 

[Name Trader]

I didn't know you could buy and sell Twitter Accounts. Is that allowed in their ToS? how about Facebook Accounts?

 

[Hybrid Names]

I didn't know you could buy and sell Twitter Accounts. Is that allowed in their ToS? how about Facebook Accounts?

yes people do sell twitter account /snapchat/instagram etc check BHF

 

[Name Trader]

@Hybrid Names - What's BHF?

 

[Hybrid Names]

@Hybrid Names - What's BHF?

black hat forum

 

[Name Trader]

Ah. OK. Can you provide the link? It sounds kinda shady. Is it legit and allowed to buy and sell these handles?

 

[Hybrid Names]

Ah. OK. Can you provide the link? It sounds kinda shady. Is it legit and allowed to buy and sell these handles?

don't know any particular site plz google for that

 

[Enfant]

You can't imagine what brand means in South East Asian countries, Russia, Japan and UAE. People there overvalue the importance of the brand and consider what meant to be a fashion in western world a good investment with high resale value. The price for this domain can reach, in fact, ANY value

 

[anhnguyenict]

I think branding.com maybe worth more than brand.com

Anyone else ?

 

[enterscope]

I think Brand.com was sold way too cheap.

 

[Constantin S]

Mid-High $xxx.xxx my opinion.