Big Prices for big names ?

[The Domain Wizard]

Yesterday at snapnames alternativeenergy.com (former owner 4Anything Network) went for $50,138.00 and along.com for $7,766.00. The domainmarket is booming and we continue where we left 2005. Do you think that 2006 will be even better then 2005 ? This is good news for all people who are in the domainmarket. Now everybody is waiting to have that big sale.

 

[seeker]

I dont think it is that simple to directly relate the amount paid in drops to the domain market in general.
Thats not to say that I do not think the market is booming.
as the market grows, more people enter, more companies that can write of domains as expenses/assets with depreciation value etc... 'strike', many times over paying for domains. This has the potential to cause a shift in the domain market place, a corrective measure if you will, sort of like what hapens in the stock markets and to a lesser degree in real estate.
having too many people expecting too much in a market is not necessarily a good thing.
I believe this, along with strong portfolio holders (3 large companies specifically) are what are driving the prices in drops higher.
as others enter the market, looking at these drops and having higher expectations end up with no sales, or much lower than expected sales, a crash usually follows.
its a double edged sword, and one should be very careful and analyze not so much as what the drops go for, but why they are going for that much (see previous analysis) and who is paying for them (see previous analysis).

 

[mole]

It's easy to overpay at auctions just to win. This seems to be a chronic problem, and even the budgets of 800lb gorillas will be sapped by all this overpaying over and above reasonable ROI. I'm sure some auctioneers like to "bump" the prices up for these gorillas for the heck of it

 

[Robson]

wow, seems like alot of money for that domain!

 

[slaughterbeck]

I’ve figured it out Mole is Allen Greenspan. :hehe:

 

[IAmAllanShore]

Prices seem to be "in-line" with expectations. I will be interested to see, however, what goes on alternativeenergy.com... if it's just parked, then I have to question the purchase. If it goes to an end-user w/n 6 months, then I'd be more willing to accept the price as appropriate.
-Allan

 

[funplace]

one thing I'm trying to figure out is, did 4anything.com just let this name drop

don't they know the value of their names, a bunch of them dropped in the last few days getting alot of cash

4anything.com is still active, the guy isn't in a coma is he?

not knowing what he's losing?

 

[SpongyBob]

alternativeenergy.com, wow, to have a sale like that! :D

I wonder when it was first registered, anyone know? The whois reads a 2006 registration date now.

 

[EbookLover]

alternativeenergy.com, wow, to have a sale like that! :D

I wonder when it was first registered, anyone know? The whois reads a 2006 registration date now.

whois.sc shows the earliest record of 1-23-2005. Not sure how reliable that is but that is what they show.

 

[SpongyBob]

whois.sc shows the earliest record of 1-23-2005. Not sure how reliable that is but that is what they show.

Ok, that can't be right though. No way that would have gone unregistered to 2005. Wouldn't surprise me if it was first registered sometime in the 2000s though.

 

[slaughterbeck]

Ok, that can't be right though. No way that would have gone unregistered to 2005. Wouldn't surprise me if it was first registered sometime in the 2000s though.

Archive.org has a result from May 1999.

 

[SpongyBob]

Archive.org has a result from May 1999.

Ah, we get closer to an answer

 

[Badger]

well first point, wayback as a cached entry dating may '99

http://web.archive.org/web/19990508181950/http://www.alternativeenergy.com/

Second (and original point), i wholheartedly agree with the bull market theory.. For those who can remember the first gold rush in domains... By the time everyone was talking about it, in general terms, the rush was over... This is the case in all bull markets - the big nasty bulls have an ethic that reads

"say nothing for gods sake and buy like crazy until mr. joe soap finds out" - then when the balloon does go up, they shrug their shoulders, promote the fact that "its a massive market" and sell sell sell asap...

 

[mole]

"say nothing for gods sake and buy like crazy until mr. joe soap finds out" - then when the balloon does go up, they shrug their shoulders, promote the fact that "its a massive market" and sell sell sell asap...

The 800lb gorillas will be ditching soon enough when the realise what kind of trash they have accumulated in their haste to throw bundles of money at everything in sight. Including those at the adrenaline racing auctions that may seem like "popular" keywords at the time but just don't convert.

Generally, most would agree that around 20% of their names give 80% of their traffic.

Most portfolios in the thousands are bloated with inefficient sludgy fat. Just go to dnslocator.com and do a run down on nameservers.

 

[fonzie_007]

Prices seem to continue to go up for domains. What I find interesting is that so many of the big sales are coming from Snapnames. People seem to be paying high prices just to get a domain name that may be worth much less than they paid. It is interesting that people seem more wiling to pay high prices at Snapnames than at a place like Great Domains...

 

[wow!]

I think someone should check the whois after some days of all the big sales in Snapnames.
Not sure these are pure sales.
Brokers are kick the domains a** up and up.
Maybe it is good for us. Maybe not.

 

[cache]

good question. anyone can suggest an answer?

one thing I'm trying to figure out is, did 4anything.com just let this name drop

don't they know the value of their names, a bunch of them dropped in the last few days getting alot of cash

4anything.com is still active, the guy isn't in a coma is he?

not knowing what he's losing?

 

[gazzip]

Archive.org has a result from May 1999.

urltrends show it as - Online Since: June 25th, 1996 ?? at least we now know that they are not always accurate :hehe:

 

[Aggro]

Not the best example to make the case of overpaying...there have been many, many far worse selling for much more.
'AlternativeEnergy,com' is well worth the money for such an important industry. This is not one domainers would much PPC on - but an end-user would pay a lot more for that.

For all those who avidly look at these drop prices and DNJournal every Tues (again majority being drop sales) and scream out "the domain market is hotter than ever!" high-fiving their friends and tack on an imaginary 5% to their fantasy net worth...
Kachingo baby! Just like lottery winners every week, probably just not you.

Here are some of Mad Axis' other classic moneymakers:

ToyFiretrucks,com $2,451
MexicoBorder,com $2451
FoldingLadders,com $3500
3 worders...

No traffic, low OV. Usually only .COM reg'd. And these and many more sell for these prices week in week out. I'd rather have AlternativeEnergy,com than 20 of those crap.

Aslo many of the people who are involved and pay the high sale prices are usually domainers and/or somewhat knowledgable about domains - so the sample is biased.
The average person who wants a domain (what is a domain? is the first qn) to put his website on would rather spend/waste $995 on a fancy restaurant than an ideal domain for his business.
And get this: most end users have a set budget to work with and do NOT read or care about DNJournal etc that "the domain market is hotter in 2006 than 2005". Further, they do not know the various valuation differences between eg. ToolWorld,com or Tools4you,com etc.
How can they if even many domainers don't?
So while it may be obvious to an experienced domainer how to price each accordingly, to the typical inquirer, except for eg. Tools,com everything else to him is the same.
Therefore he expects to pay his max set budget only.

Expectations gap. Demand driven marketplace.

 

[RogueWriter]

If I was a Folding Ladder company,

- - - - - -
FoldingLadders,com $3500
- - - - - -

Would be a steal. Personally, I wish I could work a deal with snapnames to start bundling my domains into their auction system, I wouldn't mind selling urlcrazy.com for fifty thousand dollars, hehe.