AreaRugs.com Domain Name For $405,000 — Investors Buy
Firm to launch fresh e-commerce store for area rugs.
A group of investors in Iowa have purchased the domain name AreaRugs.com for $405,000 and plan to create an e-commerce store to sell rugs online. It was an all cash transaction.
Lee Weber, head of marketing for AreaRugs.com, stated he had to be patient to get the domain name. “It was a name I had on my radar for a long time,” he explained to Reglike. “I had reached out to [the owner] a long time ago and he didn’t want to sell it.”
The seller works at a flooring firm in Dallas, Texas.
The key investors are by now in the rug business, which lends credibility to the venture.
In a press release, the firm explained its rationale for spending the money on a domain name:
Even in the desolate economy, Ward and his team are confident that the domain will thrive and will eventually become a big success. The team considers the endeavor less risky than most from the outside would and is very optimistic in regards to is expected return on its investment. “It is very rare to have the opportunity to buy a premium ‘.com’ domain name in a proven online consumer category,” stated Lee Weber, Head of Marketing, AreaRugs.com. “In economic times like this you have to think outside the box for ways to get the most out of money and our investors feel that we ought to have no problem getting a decent, if not exceptional, return out of this investment.”
