What I Learned Spending $1.5 Million on Sumo.com

What I Learned Spending $1.5 Million on Sumo.com

Today I'm sharing the story of why we spent $1,500,000 on Sumo.com. I discuss how I got past my reservations and in the process out my business partner Chad as Batman.

Why did I spend 7+ years, hire 3 brokers, and send over 200 emails to buy the 82nd most expensive domain in history?

Lessons taught in this episode:

  • Why a domain name matters - a good domain equals a legit company.
  • Lets you own your brand and be the definitive source - consider what your customers will be saying when they repeat your domain.
  • It takes as much effort to do something big as it does to do something small - put as much time into them to do them right.
  • How to defer payment for large items as a percentage of revenue - sometimes sellers aren't interested in one payment.
  • How to use leverage in negotiations - figure out exactly what the other side wants or fears.
  • Use real-time communication channels - make your messages stand out from the noise in email.
  • Useful mindsets and questions for large purchases - this will be a huge drain, so think carefully.
  • A deal is never over until it's signed - don't skimp on anything until the deal is closed.

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Links discussed in this episode:

Sumo.com

FollowUp.cc

Whois

Escrow.com

 Leave a comment and tell me what you really want.

Want to learn more about how I spent $1.5 million on a domain? Check out the video below.

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90 responses to “What I Learned Spending $1.5 Million on Sumo.com”

Eric guardian
June 14, 2020 at 6:46 am

Thnks

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Noz
October 16, 2019 at 1:52 pm

Is it too late that I just "discovered" your podcast?
i really really want credit in my appsomu account 🙂

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Chris Blachut
June 2, 2017 at 6:03 pm

"What do you really want" isn't the right question.

We're too dumb to know the correct answer. If people knew the right answer, they wouldn't blow their wads on dumb shit like fancy cars, which are only good until their friend gets an even fancier one.

A better question might be, "What's a negative in my life and is there something I can do, or even splurge on, to get rid of it?" For you, that's saying goodbye with all the issues you had with your old domains. That's why it was a purchase you'll enjoy for a long time. Some dumbass who buys a fancy car on the other hand isn't solving any negatives with the purchase and will soon stop getting any joy from it.

What do I know though? I'm just some unknown writing a comment about a podcast I listen to in hopes of not being so "unsuccessful". Well at least I'm super fucking happy, healthy, and have an awesome life!

Keep cranking out awesome stuff!

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James Cashat
April 9, 2017 at 8:50 pm

Hmm tacos for thought.... Ive been mulling over the exact same decision. I think I need an action plan! Great episode that has given me some new ideas on how to approach this.

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max
March 26, 2017 at 4:41 am

this is such a great episode and loving the podcast!

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Tony B
February 22, 2017 at 4:16 pm

i Really really want an Audi S6 ... do godaddy do those!?

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Noah Kagan
February 22, 2017 at 4:50 pm

You and me both!

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Matthew Rick
February 16, 2017 at 1:45 am

I realize you've already made mention for the challenge winner, so I'm not fishing for the gift card, but I did want to chime in. I have been wanting shadygrove.com for as long as I've had a web browser. (1997) It was never available. It was always owned by the Shady Grove Fertility Clinic.

I just recently noticed that it is now owned by someone else who has it with no actual web site.

Your post inspires me to see if they want to let it go. I might as well ask. They aren't currently doing anything with the site.

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Nathan
February 13, 2017 at 2:45 pm

I want some tacos with Noah, and Anton someday.

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Adam
February 13, 2017 at 1:09 pm

I've always really wanted Saxophones/.com. Since I play the saxophone and I've always wanted to sell them.

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Moira Lethbridge
February 12, 2017 at 4:27 pm

I want to put the light back in women's eyes. This is the vision of my company. I had tombstone eyes and figured out how to create the life and business of my dreams. What I really want is to reach one million women and teach them my approach and method and to stop redecorating Hell.

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arjun29
February 11, 2017 at 7:31 pm

Give me a hundred and I will tell you something that will save you 100 in just 20 years. Yes, you can really save 100$ just in 20 years by moving it to name or namesilo . They renew at 8.5-9$/year.
And for the domain I want, its available for sale and a big investor owns it. So, at this moment I wont be able to but that .So I don't really think about it. But I am optimistic that someday my company will grnerate enough revenue so that we can actually talk will the seller. For now I am okay with my domain. Other things I really want is my crush who is still not married. But I dont think sendinh 200 mails and an offer of cash will do that coz if she was so easy I would never had a crush on her.
One achievable thing I want is six pack abs or just a flat tommy. And i kindof got motivated to workout to get that. If you can try for 7 years and so much cash to own a digital asser why dont I give an hour a day to have my OWN asset, my biological assets.
Cheers! JMO.

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Charles
February 11, 2017 at 6:47 pm

The Bose QuietComfort 35 wireless headphones!

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Vasil Azarov
February 11, 2017 at 1:20 pm

Hey Noah! I REALLY Want YOU to speak at the Growth Marketing Conference this year. I have been trying to get you as a speaker since 2013. Back then I created the following page (http://www.startupmarketingconf.com/noah-kagan-vip.html) with an embarrassing video. Similar page worked on Neville and he joined us in Florida 🙂 We are in touch via email now and I will keep following up!

Reply
James
February 10, 2017 at 2:42 pm

I really want to start a social media/web dev company around the horse racing industry.

I've been in the industry and this is a need that really hasn't been helped. I'd love to manage different farm's social media and make websites for them that actually convert instead of having a digital business card from 14 years ago.

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Benjamin
February 10, 2017 at 12:36 pm

Hi,
That's funny because just before this podcast I considered buying my .blog domain
benji.blog !
Thank's for pushing me to do it !

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Ghulam Akbar
February 10, 2017 at 11:55 am

Congratulations for starting Podcast show you are doing great . I need your suggestion for domain name, I am going to buy domain for amazon affiliate marketing in the end of this, how do I find best domain name like your Sumo.com

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TameraChantel
February 10, 2017 at 9:49 am

Nice. Most people know it takes a great website for a business. With all the design, seo, script and everything else that goes into it. I do see some people fear buying and spending the money on the web. I believe the web is valuable as long as the website attracts and get found by the people whom need your services.

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Will
February 9, 2017 at 5:15 pm

A coolass house with secret passages

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Mike Adams
February 9, 2017 at 4:49 pm

Love the story and the determination!

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Tiago
February 9, 2017 at 3:52 pm

I am a successful dentist, 45 years old and I am sick of this life...I want to try something different, that allow me to keep the same life style and, if possible, don't end up killing me!

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Lifa Nati
February 9, 2017 at 3:14 pm

I really want to find a product that will bring so much value to its clientele so much that I won't need a lot of marketing for it,just word of mouth and you know what, you absolutely have that kind of product with Sumo.com. Excellent purchase. Great Podcast Noah! You sound like a seasoned radio personality.

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Pete M
February 9, 2017 at 5:14 am

Well done Noah! I remember reading the article an article in wired.com in 95/96 about a reporter registering mcdonalds.com, then having trouble getting mcdonalds to take it. At the time I saw the potential of the internet was thinking - how stupid are they, but I never bought a single domain! I really want to be able to spend the day at home with the missus and the dog. Favourite part of the day is walking the dog...

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Dan
February 9, 2017 at 5:03 am

Just totally staggering that you spent this much on a domain name?? Its like this podcast episode is a justification for the spend. There's no lessons to be learned here.. "Guys if you really want something, go get it" - What? Spending $1.5m on a domain? and you're proud you're like 88th most expensive domain in the world? Big price to pay for that proud feeling. You give the bank analagy - fair enough, a complicated bank URL might be off-putting but just to drop 2 letters for $1.5m? Surely thats money wastefully spent? Think what you could've done with that $1.5m in terms of other investments etc....

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Noah Kagan
February 9, 2017 at 7:27 am

Yes, I spent $1.5m so I could record a podcast episode 🙂

I am very proud of the domain. What is something YOU actually want?

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Graeme Lewis
February 9, 2017 at 3:58 am

The might be signed but its not a deal unless the money is in the bank. What I really want is to be Noah! Happy Taco Day. It's ok. I decided. Today is Taco Day.

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Adam
February 9, 2017 at 1:30 am

"Just make a great product" . . . . "not the case" . Interesting to hear this perspective. I think this comes with "aging" in to your business. I've found that most start-ups don't have this same perspective but mature in to realizing the domain as an important tool.

It took me over a decade to get my "grail" domain name. Didn't spend as much, but might be worth more than 82nd place though. .

I'm not wanting anything that I can think of other than a good outcome to my day tomorrow.

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