Do insurance agents still get residual payments on policies? I know after the first dot com crash, I was interviewing at insurance companies and that was a huge selling point to become an agent. If so, the ROI might not be so bad, but 800K is a huge nut to cover and I would agree is going to take a while to make back regardless.
Not such a big benefit when you have to wait 20 years to break even.
Edit: Why downvote a comment like this?
"Looking for ladies night near you? Triple w cover dot com for more..."
Hmmm, tough crowd. I guess 6 figure domain discussions trend that way. Definitely a reason to avoid paying for them. Check!
"If you need coverage, just go to coverage.com!"
and let's be clear. the domain name isn't so good that he doesn't have to write SEO articles like this one.
I remember reading about Volkswagen fighting for vw.com back in the 90's, and the company that owned it wasn't a squatter but an ISP and hosting company called Virtual Works. Yet Volkswagen won anyway.
> personally if I heard 'cover' outside of the context of this article I would not have made that connection at all.
Names don't need to be literal or obvious.
Even directly translated most German speaking folks would call it "insurance" or "being insured" first and "cover" (decken/gedeckt sein) having several equally specific meanings aside from insurance, and being mostly used by insurance selling/handling people.
That aside, Non-English-speaking people would typically not associate English words with something in their daily life, besides programming maybe, i.e. if we have frequently used terms in our own language. So in this field I would say it is quite irrelevant for the rest of EU what term is associated with insurance in the UK (France and their disgust for any non-French word for example?).
This is just an article trying to justify bad decisions in hindsight.
If you cant find a smarter way to spend a million dollars than buying a flashy .com then I would seriously question the entire business.
The brand with a "bad" domain name needs to be kept, you have to spend on it.
they are just a startup now, $1M is pretty big money.
Easy IPO if you hit all the right notes. Good luck!
The mistake they made was not bothering to choose a branding friendly name at the earliest stage. But they made their bed and this is them lieing in it.
The fact this required reading between the lines shows this is a terribly written article.
This training will take some more time for other TLDs and will take more time to become normal.
Even now, companies that start with a strange TLD but grow large enough will eventually buy the .com which repeats the cycle that only .com is legit for commercial services.
Anyone know of popular companies in the USA that don’t use .com?
One thing to point out, is that 4 of those are country-specific TLDs (or the historic .net) which have been around for awhile so they might still have some familiarity.
It starts to look very unfamiliar to non-tech people when URLs have a long TLD, such as:
We paid much, much less for https://fauna.com/ during our seed stage and rolled up all associated domains along the way cheaply, but we were also willing to change the brand if necessary, and had done some investigation as to the "acquirability" of the domain when we were just starting out.
I question the use of multiple brokers, though, that seems needlessly expensive and guarantees that the negotiation will be hardball because no relationships can be built.
Insurance is one of the stickiest industries. Churn is almost ALWAYS net negative. Referrals are HUGE and grow a biz that does no marketing whatsoever.
Just engaged with an insurance company for a project and saw some insight into their numbers. Blew my mind. Software biz with similar renewals + low cost per customer + profit margins would be very, very, very valuable.
So much money on a domain sounds outrageous. But even small insurance companies are generating $1mil in cash a year. With no risk of losing it (really-there’s always risk).
Amortizing this out with the (possible) benefits might make it a sticker shock worthy of doing.
By the way I just checked and color.com seems to now belong to a genetic testing company, I wonder how much they paid for the domain, maybe the color.com app made a good investment in the end.
I wonder if this is a pattern for them to celebrate the vanity milestones - I also noticed another medium post about the $27M they raised that "puts us in a strong position to fundamentally change the insurance industry".
Changing the insurance industry is a huge task and $27M is a drop in the bucket - if I were there investor I'd hope to see their medium articles focus more on real progress they are making to change the industry.
Maybe they could have paid someone to come up with a domain name that doesn't cost $825k.
the domain name doesn't have an inherent value or basis, it's (presumably) unlikely that the next Cover Inc would be willing the same amount within a short timeframe of them wanting to disinvest from the name. Illiquid assets have to pay for liquidity in such cases.
compare and cover seem similar. Both are short, common names that begins with a 'c'
He tries to justify without anything tangible. Well the company is built on intangible things anyway.