The great thing about this sale is that it’s not just another domainer to domainer flip. The buyer is already in the business of rugs with existing offline operations.

The domain industry loves to see end-users investing large sums of money to buy premium domain names. It reinforces what domainers have been preaching about the value of domain names and gives the industry a little boost everytime a headline is made.

Although it’s a large amount of money for just a domain name, it’s really not much if the domain is material in helping AreaRugs.com Inc to be “the number one shopping destination online for area rugs”. (Update: The total market for woven, tufted and other carpets in the US was US$15.7 billion in 2004)

Their press release contains an interesting point that a lot of brick and motar companies should reflect upon during this recession – “In economic times like this you have to think outside the box for ways to get the most out of money and our investors feel that we should have no problem getting a decent, if not exceptional, return out of this investment.”

Group of Iowa Investors go All-In for $405,000 on Investment in AreaRugs.com

With new owners, AreaRugs.com plans to become the leading online resource for people looking for information on care or maintenance, or looking to buy quality area rugs. The combination of industry expertise and the high quality of the domain makes the site a contender to be the number one shopping destination for area rugs and carpet.

DES MOINES, Iowa, Sept. 22 /PRNewswire/ — AreaRugs.com has new ownership, having been bought by a group of investors for an astounding $405,000 for just the domain. Randy Ward, President and CEO, AreaRugs.com Inc., says, “Our goal is to be the number one shopping destination online for area rugs. We feel we have assembled a great team to accomplish that.”

Even in the desolate economy, Ward and his team are confident that the domain will thrive and will eventually become a big success. The team considers the endeavor less risky than most from the outside would and is very optimistic in regards to is expected return on its investment. “It is very rare to have the opportunity to buy a premium ‘.com’ domain name in a proven online consumer category,” said Lee Weber, Head of Marketing, AreaRugs.com. “In economic times like this you have to think outside the box for ways to get the most out of money and our investors feel that we should have no problem getting a decent, if not exceptional, return out of this investment.”

The Web site currently serves as a domain for consumers to learn more about area rugs, providing expert advice, tips and information on the rug industry. Homeowners and designers alike will find tips and advice to enhance any space, from the hallway to the bedroom.

By leveraging their substantial brick and mortar buying power, they will be able to offer some of the best prices and largest selection of area rugs.

As the proud new owners of AreaRugs.com, Ward and his fellow investors plan on carrying a huge selection of area rugs including all of the top brands including the likes of Shaw, Mohawk and Karastan will continue to provide information and expertise on area rugs. A well-known floor covering expert in the state of Iowa, Ward will be applying his extensive knowledge to the Internet with this investment.

“We have formed a partnership between a group of investors that includes the state of Iowa’s largest carpet/rug dealer and some of the state’s leading online commerce and marketing experts,” said Ward.

A custom built robust e-commerce store will be launched in several months. In the meantime, AreaRugs.com serves as a leading authority in the carpet/rug industry.

Contact:

Lee Weber

Head of Marketing

Lee (at) arearugs (dot) com

319-631-0505

Source: PRNewswire