information Domain Name Sales Price Gouging – The Truth

Eric Lyon · Sep 11, 2017

There's been a lot of talk over the years about price gouging in the domain industry, however, nobody has really given any viable examples to prove or disprove the comments. Last night I found a little time to write an article about it and provided examples after a long over-due hiatus from writing

We went from being busy at work to getting flooded in Hurricane Harvey and losing everything, to being price gouged at Avis/Budget car rentals.

It’s price gouging I want to talk about today since there are some misunderstandings in the domain industry by consumers looking to secure a domain for their brand.

Limited supply to meet demands – This doesn’t really apply when it comes to domains since there are a plethora of different extensions that you can register to develop your brand on (E.g. .com, .net, .us, .info, .org, .web, .work, etc.). The supply is there, even though the extension your brand is available in may not be the most ideal for you.

Raising prices in a particular domain extension – A good example of this would be the .com extension. As most veteran domain investors/resellers know, the .com extension is considered the cream of the crop and the best choice for any business looking to develop their brand online. Due to there only being one available in .com for a companies unique brand name (E.g. ScorpionAgency.com) it’s common for a domain investor/reseller to raise the price of the unique domain/property just like real property values go up in areas that are more developed, near high traffic intersections, and have a higher demand to build a business on...

indiegrind · Sep 12, 2017

Welcome back Eric!

DNWon · Sep 12, 2017

Welcome back Eric, I hope you and your family are getting your life back together somewhat. Think about you everyday, and hoping for the best!

tech4 · Sep 12, 2017

There is basic supply and demand, however, I think price gouging appears when the market seller engages with a special buyer. This appears to be price negotiated, which again could be reasonably fair.

However, bidding practices at some of the well known firms like Godaddy, snap, pool and some other, these practices has been reported to be ....in the grey areas. Which is more like ....shill bidding.

Kuffy · Sep 12, 2017

Welcome back, and I hope you are all well and sorting things out after the hurricane damage.

In a free market, supply and demand set the price. I've just looked at an ad for a vintage Bemtley ( 1925 with supercharger ) that is for sale for £850,000. Why is that car worth that much money when there are many much cheaper cars available? It's the rarity and prestige of ownership, plus the revenue potential if you want it, that pushes up the price. .com domain names are much the same in my opinion.

Julio · Sep 12, 2017

Welcome back Eric,

Thank you for taking the time to write this post at a difficult time.

garptrader · Sep 12, 2017

Welcome back and I hope your family is OK. Having seen IRMA from the other side of Florida, hurricanes are serious business.

Regarding price gouging, when you see IT consultants and attorneys billing for five figures on a recurring basis, why can't a domain investor price a domain which can be used to promote a business with seven figures or more in annual revenues $5k for a one-time fee? Who is the one price gouging?

lock · Sep 12, 2017

We all want to gauge our names on the best sales person not the best domain.
It is the sales person that chooses the high figure and sticks to their guns.
When a keyword+random word sells for 10k it doesn't mean same keyword+random word or even keyword+relevant is even worth anything. You can thank the sales person that sold any domain for high figures for creating some form of precedent to allow you to ask for more. Pay tribute to these great sales people by holding out for the best figure you can on domains.
To gouge something is to really take something hacking it. Perhaps my English is crap.

information Domain Name Sales Price Gouging – The Truth

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Eric Lyon

Scorpion Agency LLCTop Member

indiegrind

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DNWon

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tech4

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Kuffy

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Julio

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garptrader

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lock

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