For Denver real estate executive Peter Niederman, his seven-figure purchase of the Internet domain name Denver.com — while virtual — is comparable to buying prime real estate. Niederman, chief executive officer of Kentwood Real Estate, can scarcely contain his enthusiasm about the deal. “I own more than 600 domains,” he said Monday. “I’ve been investing in them for more than 12 years now. Some are cheap, some are expensive. This one is my most expensive. But in my opinion, it’s priceless.
Stephen Haag, a professor at the University of Denver’s Daniels College of Business, called Niederman’s purchase “utterly brilliant.” Haag noted that investor Marc Ostrofsky paid $150,000 for the domain name business.com in 1995 and sold it four years later for $7.5 million. “Traditional real estate teaches you about location, location, location,” Haag said. “In the digital world, location is about name. Niederman’s acquisition has the ability to really increase traffic and also yield unbelievable results.”