In the latest episode of Master of Your Domain, Rob Schutz sits down with Alex Back, the founder of Couch.com—a content-driven marketplace for furniture enthusiasts. The conversation was filled with anecdotes and deep dives into the nitty-gritty of domain acquisition. Here’s a recap of their chat, focusing on how Alex snagged the coveted Couch.com domain and turned it into a thriving business.
Back to the Couch
Alex Back, a seasoned entrepreneur in the home decor industry, wasn’t looking to stay in the furniture game after selling his first company, Apartment 2B, in 2018.
But when the Couch.com domain floated across his desk, everything changed. “Honestly, my interest genuinely started from the domain name,” Alex admits. “You don’t see single-word domains like this available anymore.”
It wasn’t just the novelty of the domain; it was the challenge and opportunity it presented. While many entrepreneurs struggle to find the perfect brand name, only to settle for a less-than-ideal domain, Alex approached it from the opposite direction. The domain came first, sparking the idea for Couch.com as a marketplace connecting consumers with the right furniture retailers.
A Gap in the Market
Couch.com wasn’t just about selling couches—it was about solving a real problem. Alex identified a significant gap in the furniture market: consumers often don’t know where to start when buying new furniture, especially something as significant as a couch. “It’s not like buying a t-shirt. I can tell you exactly where to go when I need new clothes, but new furniture? Even someone like me… ‘Is that store still there that we went to last time?’” he mused.
Couch.com aims to bridge this gap by providing valuable content, education, and recommendations, helping consumers make informed decisions. “We’re sort of presenting ourselves as the consumer reports of couches,” Alex explained. This approach not only sets Couch.com apart but also builds trust and credibility with its audience.
The Domain Acquisition: A Wild West Negotiation
The process of acquiring Couch.com wasn’t straightforward. As Alex shared, “Most single-word domain names are handled by brokerages… nobody really knows how to value these domains.” He quickly realized that this wasn’t going to be a bargain deal. The domain was owned by a high-net-worth individual who had no urgent need to sell, adding a layer of complexity to the negotiation.
The domain’s previous owner? One of the brothers who founded Applied Semantics – the software that became Google AdSense – selling it to Google for $102 million over 20 years ago. Negotiating with someone who doesn’t need the money can be tough, but Alex found a way to make it work.
Leasing to Own: The Couch.com Deal
In the end, Alex entered into a lease-to-own agreement, a structure becoming increasingly popular in high-value domain acquisitions. This arrangement allowed Alex to spread the cost over five or six years, reducing upfront financial strain. If the business didn’t succeed, he could walk away without being on the hook for the remaining payments. But if Couch.com thrives, he’ll eventually own the domain outright.
There’s also a tax advantage to this setup. Alex pointed out that leasing the domain allows him to write off 100% of his payments as a business expense, offering significant tax benefits compared to a full cash purchase. “At the end, I end up with an asset assuming I make it the five or six years,” Alex said, showing the savvy behind his decision.
The X-Factor of a Killer Domain
So, was it worth it? Absolutely. Alex has seen firsthand the impact of owning a premium domain like Couch.com. “It’s just sort of this instant credibility… every door that I want to get open… everybody’s listening,” he said. The domain has not only helped establish Couch.com as a major player in the furniture market but has also made it easier to build relationships and partnerships.
In the words of Alex Back, Couch.com has that “X factor that you just cannot replicate.” It’s more than just a domain; it’s a brand, a business, and a powerful asset that continues to drive Couch.com’s success.
As the conversation wrapped up, it was clear that Alex’s journey with Couch.com is just beginning. With a solid business model, a killer domain, and a smart financial strategy, Couch.com is poised to make waves in the furniture industry.
And for those curious about whether Couch.com has secured the matching social handles and other digital assets—well, stay tuned. This couch has plenty of room to grow.
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