Checkmate: How Chess.com Went from a $55,000 Bankruptcy Buy to a $100 Million Empire
When Lore Becomes Legend
In the world of domain names, there are great buys, and then there are all-time legendary buys. Chess.com? That’s in a category of its own.
Let’s rewind to 2005. Erik Allebest, a guy deep into both chess and SEO, saw an opportunity most people missed. A company that owned the domain chess.com was in financial ruin. The site was a mess, drowning in $5 million of debt. But buried under that disaster was a golden opportunity: the perfect domain name.
The $55,000 Power Move
When chess.com went up for bankruptcy auction, Erik made his move. For just $55,000, he secured the domain—no business, no revenue, just the name. In today’s domain market, that price seems absurdly low. But back then? It wasn’t even publicly known that this auction was happening. No bidding wars, no hype—just Erik and a handful of people who even knew it was up for grabs.
And here’s where things got interesting.
At the time, browsers worked differently. If you typed “chess” into your address bar and hit Enter, guess where it sent you? Chess.com. No need for ads, SEO, or marketing—just an automatic, built-in traffic funnel.
That was the first checkmate move. But Erik wasn’t just playing for type-in traffic. He had a bigger vision.
Building the MySpace of Chess
Owning chess.com wasn’t enough. Erik wanted to build something massive—a chess community. At first, the plan was simple: build forums, profiles, and a social space where chess lovers could connect. No game play. No AI bots. Just a hub for chess nerds to hang out.
And guess what? It worked.
Even before launching a proper product, chess.com was pulling in 1,000 sign-ups per day. And that was without ads. Compare that to most startups, where founders grind for months just to hit 1,000 total users.
But then… the real game began.
From Forum to Chess Empire
Users wanted more. They didn’t just want to talk about chess. They wanted to play chess. The team rushed to launch their first version of online chess in two days (yes, two days), and while it was basic, it was enough to kickstart the next phase.
They introduced chess puzzles. Lessons. AI-powered game analysis. And slowly, the site transformed from “the MySpace of chess” into the chess platform.
Then, the Internet Lost Its Mind Over Chess
For over a decade, chess.com grew steadily. 20-50% year-over-year growth. Then, from 2018 onwards...things really started to heat up.
- The World Chess Championship brought new eyes to the game.
- Chess blew up on Twitch.
- The Queen’s Gambit dropped on Netflix and single-handedly made chess cool
- COVID lockdowns had people stuck at home, looking for a challenge.
Each wave of hype sent traffic skyrocketing. By 2020, chess.com was adding 400,000 users a day. The business 5X’d overnight. Then, 2022 delivered yet another viral moment: The Magnus Carlsen vs. Hans Niemann cheating scandal. Suddenly, chess was front-page news. Everyone wanted in.
Today, chess.com is a $100+ million per year business. The site has over 150 million members and 100,000+ new sign-ups daily. And it’s not just an app—it’s a full-blown media empire with live streamed chess tournaments, influencers, and a content machine that dominates platforms like YouTube and TikTok.
The Real Lesson: Domains Matter. A Lot.
Let’s be real. Could chess.com have been built on a different domain? Sure. But would it have had the same impact? Absolutely not. That one-word .com gave instant credibility. It gave free traffic before SEO even mattered. It made chess.com the default home for chess online. And all for $55,000. For Erik Allebest, it wasn’t just a domain–it was a winning position from move one.
Checkmate.
