discuss How PrizeFight.com went from $105,000 to $9,000

no startup on the niche related to the domain name

IMEZI said:

no startup on the niche related to the domain name

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Yes, but do you think it was motivated by a trend.
If it was startup, did it die out?

Resource?

The first sale was retail and the second sale was wholesale, and the difference between wholesale and retail is generally around 10x. So it doesn't seem that surprising to me. Might even be on the high side considering that the plural retailed for $12k, although the plural is worse IMO.

Arpit131 said:

Yes, but do you think it was motivated by a trend.
If it was startup, did it die out?

Resource?

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back on 2006 term/keyword PRIZE were quit innocent :D nowadays most people using the keyword for teaser (bait) for acquiring personal info such as credit card etc, so people start to learn and aware for those MO and the result is the keyword were no longer attractive

Michael said:

The first sale was retail and the second sale was wholesale, and the difference between wholesale and retail is generally around 10x. So it doesn't seem that surprising to me. Might even be on the high side considering that the plural retailed for $12k, although the plural is worse IMO.

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How would you think a deal in wholesale be categorized, considering that there are multiple domains and saying that this particular name went for $9,000 in a wholesale deal may be difficult.

Arpit131 said:

How would you think a deal in wholesale be categorized, considering that there are multiple domains and saying that this particular name went for $9,000 in a wholesale deal may be difficult.

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Because it was bought the second time around by a very well-known domain investor, Braden Pollock, on an auction venue that has almost no retail buyers present. It's pretty safe to say that was a wholesale price.

And the original sale was at Afternic which is almost exclusively retail, except when someone BIN prices a domain and doesn't know the real value and a domain investor snaps it up.

The large difference between the two sales is almost entirely about wholesale vs. retail, although probably some of it can be attributed to the 12-year gap too.

Michael said:

Because it was bought the second time around by a very well-known domain investor, Braden Pollock, on an auction venue that has almost no retail buyers present. It's pretty safe to say that was a wholesale price.

And the original sale was at Afternic which is almost exclusively retail, except when someone BIN prices a domain and doesn't know the real value and a domain investor snaps it up.

The large difference between the two sales is almost entirely about wholesale vs. retail, although probably some of it can be attributed to the 12-year gap too.

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thanks for the explanation.
I would say, still a big depreciation in the price!
Whether it is a wholesale or a retail deal, the decrease is significant.
So, is it safe to say that $9,000 price would be a reseller price for this one?

Mere a past history a high price sale does not make it a valuable. It is not even a good brandable domain name unless a niche can be discovered for it.

dhyane said:

Mere a past history a high price sale does not make it a valuable. It is not even a good brandable domain name unless a niche can be discovered for it.

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But that definitely counts. Doesn't it?
$100,000 for a 2 word is a big price! Specially this one. there definitely would be something!

I think next time its price will go below $9k.

It appears someone had a dream back in 2006
https://web.archive.org/web/2006111...zefight.com:80/faq.aspx#whatisprizefightabout

But it didn't pan out.
https://web.archive.org/details/prizefight.com

2008
https://web.archive.org/web/20080303013915/http://www.prizefight.com:80/

Without the dream it doesn't really have xxxxxx value.

Peace,
Kenny

They overpaid for the domain and held it too long. Many domainers assume that the value of premium domains always increase over time but that's not always the case.

Michael said:

Because it was bought the second time around by a very well-known domain investor, Braden Pollock, on an auction venue that has almost no retail buyers present. It's pretty safe to say that was a wholesale price.

And the original sale was at Afternic which is almost exclusively retail, except when someone BIN prices a domain and doesn't know the real value and a domain investor snaps it up.

The large difference between the two sales is almost entirely about wholesale vs. retail, although probably some of it can be attributed to the 12-year gap too.

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Ok, but I don't understand the behaviour of the seller, it is apparently insane liquidate a domain in that way

its truly confusing. cant think of an explanation on this

Bullock said:

Ok, but I don't understand the behaviour of the seller, it is apparently insane liquidate a domain in that way

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The seller at NameJet wasn't the person who paid six-figures for the name, it was YummyNames which is the company Tucows uses to warehouse expired domains. Although it's possible that someone sold it to Tucows and it might have even changed hands multiple times, my best guess would be that it expired and the registrar just kept it for themselves.

Someone definitely took a bath along the way though, which is not uncommon after a retail purchase for multiple reasons. First, they might have made enough money running the site that the domain was already paid for multiple times over and they don't really care about selling for less than they paid. Second, getting something is better than bag-holding forever.

Not all the reason, but there some element of Prize Fighting more associated with boxing than MMA, Boxing has been going down hill for a couple of decades.

Michael said:

T First, they might have made enough money running the site that the domain was already paid for multiple times over and they don't really care about selling for less than they paid.

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Generally speaking, if the site was successful and profitable, why does someone sell at "discount" the domain name?

IMO, this hypothesis is unreasonable


Kind regards

Good reasons stated above. In 2006 the domain market was deep into a multi year bull run. Many domainers were making money hand over fist. A lot of that house money went into bigger names at prices never to be topped again.

Bullock said:

Generally speaking, if the site was successful and profitable, why does someone sell at "discount" the domain name?

IMO, this hypothesis is unreasonable


Kind regards

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Because nothing lasts forever in business? Anyway it doesn’t really matter, the point was that the buyer who paid six figures wasn’t the seller this time around. It’s not insane for Tucows to liquidate a domain they probably got for free.

ecalc said:

In 2006 the domain market was deep into a multi year bull run. Many domainers were making money hand over fist. A lot of that house money went into bigger names at prices never to be topped again.

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I totally agree

overture tool was still the standard in 2006 and I can imagine the name in question had decent OVT/w ext/

to further speculate, I would assume this generic term received type-in traffic and therefore, at that time, it would have had a preconceived value which could be sold based on a minimum multiple of 10 years.
which is much higher multiple than what many buyers are willing to pay today.

if that name was making $15k a year, then at that time, $150k would be reasonable sale price.

imo...

Any other views?

johname said:

Not all the reason, but there some element of Prize Fighting more associated with boxing than MMA, Boxing has been going down hill for a couple of decades.

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This!

At least this is the primary reason for the overall decrease in value of this domain.

Boxing's popularity has been replaced by MMA and I suggest the (rather) old school term "Prize Fight" has been replaced by more the modern "Championship" within the sport of boxing, particularly in the US.

https://trends.google.com/trends/explore?date=all&q="prize fight",boxing championship

https://trends.google.com/trends/explore?date=all&geo=US&q="prize fight",boxing championship

As to the actual selling price(s) in transaction(s) subsequent to the 2006 highwater mark, specific factors (acquisition price, owner's financial needs or health, etc.) would have to be looked at to understand the reason for pricing at the particular time of (a) sale.

I think it’s because it wasn’t worth 6 figures in 2006.

It’s not something i would go near now at $9,000 from an investment point of view, I’m not even sure it’s worth $9,000 to a end-user.

I'm of the opinion that it was probably worth the $105k in 2006. BUT that was probably the last point in time it was worth that much due to changing interests -- and without succesful development (as pointed out by Kenny.) The GTrend graphs show 2006 as the last "big" peak for "Prize Fight".

Yes, the value of the domain is currently a lot less now, but I'd still think it could be worth $XX,XXX to an end user that had a well thought out development plan and solid, long term financial backing. Heck, I'd think it would be worth at least low 5 digits to one of the Vegas big boxing venues or a sanctioning body.