Desirable domains go under the hammer

Hot property domain names, including stockexchange.com, are expected to fetch more than $2m when sold on a new domain name auction site launching in the US next month.

HitDomains.com, which specialises in trading domain names, intellectual property and websites, will open the bidding for between five and 10 "premier" names to the global finance and business sector during the week beginning 24 April. The company hopes to generate more than $25m (£16m) for existing address owners.

The firm also plans to launch an auction site for the European market in July and is looking for names specific to the region, such as local cities.

Doug Walters, president of HitDomains, said a European auction could generate up to $50m given the growing state of the business-to-business market. "There are lots of venture capitalists out there who want to grab some of the best names," he said.

Walters said HitDomains' history and contact base means that it can double the price owners would make on a name if they sold it privately. He added that buyers of valuable names may also be offered partnerships or equity stakes in the vendor.

HitDomains predicts that each name, such as loansforless.com, will command more than $2m, but believes some have the potential to draw bids in excess of $5m.

The company will also auction other financial and business related names, with bids starting at $500,000 or less. It will determine the starting bids for names and take a commission rate of between 10 and 20 per cent for "premier" names.

HitDomains made its mark auctioning domain names for individuals, but the April auction will be the first aimed at a vertical sector. Over the past year, the company has sold wallstreet.com for $1m and autos.com for $2.2m.