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Aftermarket prices keep climbing - retail sales not. Answers?

Labeled as discuss in Domain Buying and Selling Discussion, started by Dot Com Realty, Apr 4, 2020

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  1. Dot Com Realty

    Dot Com Realty Account Closed (Disallowed)

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    Like many of us, we notice that aftermarket sales are stubbornly high - very overpriced IMO. With retail prices not gaining on the low and mid range, the margins are getting tight - if you are bidding all the way up. I have a strict buying strategy and do not like to chase names up into the sky. And so, I have not won a domain in many weeks. Like Warren Buffet at the end of the economic cycle, he sits in cash as everything is too expensive.

    I like to search to see who is buying at high prices. Last two months I saw deep pockets on a couple names, and large Chinese and lndian investors, but mostly small time investors - clearly newbies. In checking the winners' portfolios I see a lot of junk - these are the ones (in my case) who are doing the crazy bidding. Oddly, I saw no hugenames in there. That was a first. Seems their algorithms are not that stupid.

    I am mostly siting on the sidelines watching the amateurs throw tons of money at expired domains, but smart money wins in the long run. I would imagine the dumb money runs out of steam at some point, and prices get back to wholesale (or retail climbs dramatically to justify the costs of acquisition).

    Any thoughts on this?
     
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  2. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

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    Good topic, people are to focused on fast profits, and not the essentials in the background that affect domains, like don't be paying top dollar for travel related domains right now unless you have a really long term target. There are so many variables you have to focus on, these get rich courses give examples that are those one off outliers, very hard to hit twice. So basically most of these buyers have unrealistic expecatations.
     
  3. Riz M.

    Riz M. EmpireNames.com VIP Gold Account

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    a lot of big investors are now isolated in home with bags of money and feeling domains are best investment right now plus also flood of enduser is coming in. so obviously market will grow more nearly...enduser demand is increasing because all offline businesses are now thinking to go online and for that they need first domain.. so they are going for exact match names with there companies name.
    we will see more jump very soon.
    IMO but its just me...
     
  4. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi

    I think some prices are rising because...
    not every buyer looks at price and compares it to "todays market value" or TMV

    that's a term that's often used by domainers to justify an offer or justify their selling price

    but those who look beyond "today", and who are willing to take and can assume the risk...
    will likely bid more, than those who are fixated with TMV's

    you have those who want to buy and make a quick sale shortly after, they have the tightest budget
    then you have those who'll buy high and sit on it until TMV is higher than what they paid, or they get great offer or until death do them part.

    imo..
     

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