People who have sold/bought domain names know that there is a huge market out there for premium names and it does not get more premium than Sex.com. Reportedly, one of the most wanted domain names is going up for sale again through an auction on March 10, 2010 at the law office of Windels Marx Lane & Mittendorf, LLP. The law firm is acting as an escrow agent for the deal and would require a certified check of $1 Million from anybody planning to bid for the domain.
Previously, sex.com was sold for $14 Million back in 2006 to ESCOM LLC. As the current notice of auction states, the domain is being sold by DOM Partners LLC after ESCOM LLC (the borrower) failed to repay the amount borrowed from DOM Partners. The domain name sex.com was the collateral that ESCOM LLC used to borrow money and the lender is now selling it to recover their money. The complete notice of sale can be read here.
With Internet companies also being affected by the recession, will Sex.com fetch at least what it cost the last buyer? According to Compete the site receives a total of 120,000 unique visits each month so its easy to assume that the site is not making the kind of money that would justify a $14 Million selling price. However, it is also one of the most wanted properties on the web and there is a chance the new buyer might be able to turn it around. Previously, Toys.com was sold for $5.1 Million and Candy.com sold for $3 Million. What do you think, are these premium domain names really worth millions of dollars or are they seriously over valued?