Advertisment

What’s in a Name?

author-image
VoicenData Bureau
New Update

A

rose is a rose and will be a rose no matter what name you give

it. After all, the essence remains the same. So what’s in a

name? The innocuous sounding question is actually a

multi-million one–literally–in the dotcom world of today

(and tomorrow).

Advertisment

Just look at this.

Tuvalu, a tiny South

Pacific nation measuring 26 sq. km and with a total population

of 10,600, has sold the use of its domain name–.tv–to

Idealab for $50 million to be received over a period of 12

years. The contract will be renegotiated in 2012. The deal

promises to garner Tuvalu more than three times its national

budget.

The Tuvalu islands have

already garnered $15 million from the deal, enough to transform

the existence of a country where the annual budget tops out at

$14 million per year. The per-capita revenue of the tiny nation

is on its way to becoming one of the highest on the planet.

Advertisment

And Idealab is further

auctioning off the domain names at 35.7 times their actual

value!

It is offering a starting

bid $1,000 for a ".tv" name versus $28 for a

marginally different version of ".com" for a name?

Tuvalu is not the first

country in the game. Have you not noticed the .cc ads that have

been running on radio, TV, and the Web? .CC is CoCos (Keeling)

Islands–also in the South Pacific.

Opinions are divided about

deal. While some think it as a great idea for a poverty stricken

country to better its citizens’ lives, for others it will turn

out to be only an "amusing footnote in the Internet

history".

But what company would be willing to pay

such high price for a name? Idealab reasons it out in the name

of "brand protection". Only time will tell. But we do

know that there is lot of money in a name these days.

Advertisment