question Do Auction Platforms Typically Yield Only 5–15% of a Domain Name's Full Value?

[DBinSJ]

"The majority of buyers on domain name auctions sites are domain name investors (individuals who purchase domain names with the sole purpose to resell them for a profit), so you have to be prepared to sell your domain name [on an auction platform] at so-called 'wholesale' or reseller price levels, which are usually between 5 to 15% of the 'retail' [value] of a domain name."

To what extent, if any, do you think the statement above by Doron Vermaat (at TheWebsiteFlip.com) is accurate?

 

[karmaco]

His point is selling to other domainers gets very little money in most cases. He is pointing out the differences between an end user and what a domainer would pay. I actually think 5 to 15% is much higher than the reality. Its more like 1 to 5% with average names.

 

[DBinSJ]

His point is selling to other domainers gets very little money in most cases. He is pointing out the differences between an end user and what a domainer would pay. I actually think 5 to 15% is much higher than the reality. Its more like 1 to 5% with average names.

Thank you for your informed response! May I ask you, please: Would you agree that auction platforms are populated overwhelmingly by domainers, as opposed to end users -- in other words, that it is highly unlikely that an end user will visit an auction site to purchase a domain name?

 

[karmaco]

End users familiar with domains and domain buying do use the auction platforms and drop auctions to acquire names they want. There is no way to know percentages but it is certainly much smaller amount than amount of domainers on these markets.

I don’t think the end users make that much difference price wise because if they go the auction route in the first place they didn’t like the price and want to acquire it cheaper. Still they are likely to drive the price up because they have a shot to get it.


I think they watch particular names for a drop and spring into action if it does drop. They aren’t likely patrolling auction sites every day.