Explains why $675,000 was a smart investment — Teamwork.com buyer
Firm’s CEO states valuable .com domain gives it more credibility and help it grow sales.
TeamworkPM recently bought the Teamwork.com domain name for $675,000 and is rebranding its business around the domain name.
I previously caught up with Alex Lerman, who sold the domain name. This stretch I also had the chance to speak with Peter Coppinger, co-founder and CEO of TeamworkPM, to understand why his firm spent $675,000 on the domain name.
Coppinger stated it took a couple years to finally settle on a price, but he’s confident the domain will help his firm market the first truly-integrated suite of business software.
A couple years ago the firm reached out to Lerman regarding buying the domain. It offered $10,000, then $20,000, all the way up to $100,000. Each time it was rebuffed.
Regarding six months ago, Coppinger reached out to Lerman again.
“I stated c’mon, tell me how much you’ll sell it for,” Coppinger stated.
Lerman pointed Coppinger to domain comps in the millions of dollars. Coppinger balked, and asked Lerman to just give him a price. Lerman came back with $675,000.
Following conferring with his management team, Coppinger accepted the price.
“Owning Teamwork.com gives credibility to our brand,” stated Coppinger. “We have a great product but we haven’t been concentrating on marketing as much as we could. This domain is part of strengthening our marketing efforts. I think we can quadruple our sales in the next year with better marketing, and using this domain name is part of that.”
It’s certainly an upgrade from the firm’s previous domain name, TeamworkPM.net.
“If you’re talking to someone at a bar regarding your firm, they just won’t remember TeamworkPM.net,” he stated. “One of our competitors is Basecamp, which has Basecamp.com. If someone is comparing Basecamp.com against TeamworkPM.net, many will choose the .com since it has credibility and the right image.”
Coppinger stated owning such a great .com shows that the firm isn’t a flash in the pan and it will be around in the future.
He is aware that fresh top level domain names, counting .software, are being introduced. But he still thinks owning Teamwork.com is a solid investment.
“I don’t think the credibility factor of owning a great .com domain will be eroded, at least anytime soon,” he stated.
Owning Teamwork.com is just one part of the firm’s increased attention to marketing. Ireland-based Teamwork.com is looking for a Chief Marketing Officer to help lead the firm’s efforts.
I bet owning Teamwork.com will help the firm in more than just sales; the credibility will also help it recruit a good CMO.
