Why “business.com” looked worth millions
A domain name is the human-readable address people type to reach a website. In the early commercial internet, a short, ordinary word paired with “.com” could do more than identify a company: it could tell visitors what a site was about before they arrived. “Business.com” was unusually broad and easy to remember, making it potentially useful to many kinds of companies—not just one narrowly defined brand.
That breadth helps explain why Marc Ostrofsky’s 1997 purchase for $150,000 seemed startling, yet the name could command $7.5 million from a startup two years later. The buyer was not acquiring a building or a proven stream of sales. It was paying for a scarce, memorable address and the marketing advantage it might provide: a name that could be spoken, printed, and recognized without explanation.
A valuable name is still a risky investment
A domain’s price depends on what a buyer believes it can help a business achieve. A company may expect a strong name to attract visitors, strengthen its brand, or make advertising more effective. Those benefits are prospective, though; the address does not guarantee customers or a workable business model.
That distinction mattered here. The startup later went bankrupt, turning the purchase into a striking example of how a costly asset and a failing company can coexist. The domain’s price reflected its perceived commercial potential, not proof that its owner could turn that potential into a durable business. A memorable address can be valuable; it cannot make the business behind it succeed.
