DAN.com

Do domains sell for cheap via auctions b/c of zero promotion?

Labeled as question in Domain Selling and Domain Sales, started by WhoaDomain.com, Jul 1, 2020

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  1. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com Gold Account

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    Hello,
    Every time I check on Namebio for recent domain sales I always find domains that I feel should have sold for 5-10 times more but instead sold for only $100-$200 range. maybe $300.
    What is really going on here?

    I feel these domains were expired and the registrar like Godaddy simply did not bother properly promoting it like paid advertising at the usual spots.

    Is this a fair assumption?

    or are the domains that I feel should have sold for 5-10 more are not really that great?

    I feel these domains sold for so cheap because people simply did not know they were at auction because they were not properly advertised or promoted. As Godaddy just listed them for auction and that's about it.

    I ask this because I have similar domains. With that said. If I auction my domains should I expect the same sold prices as these below $200 sold prices?

    or will my efforts to promote and spending money for the promotion for each domain be worth it and boost the sold prices above these $100-$200-$300 domain auction sold prices?

    I have to admit it has been what has discouraged me from even sending my domains to auctions.

    My only hope is if I do send my domains to auction and do make an effort to promote it and pay for advertising each auction will the results be different from these that I have seen?

    there's so many variables when it comes to sending domains to auction especially when you are always advised to list the domains for the lowest starting bid possible and with NO RESERVE.

    It's just so scary that I've been frozen in fear to the point of no action.

    I mean I'm confident my domains are awesome but I compare mine to the ones on namebio that I thought were good domains and even mine were better but even then I have fears because again those domains sold for $100-$200 range at auction.

    mind you these are expired domain names which 9 times outta 10 everyone says is a "greater buy" than say bidding on domainer owned domains.

    Anyone else feel this way?
     
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  2. Mike Goodman

    Mike Goodman Established Member

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    What are today's market conditions? Just take a look. A great proportion of the world is in or just emerging from lockdown. The economies of most countries, including the USA and Europe, have come to a grinding halt and there is little sign of a quick return to activity.

    That means a buyer's market for everything under the sun. And the best place to buy, i.e. the very worst place to sell, in a buyer's market is at auction.

    Just as, when markets are buoyant, you will complain that you can't afford to buy anything worthwhile at auction. Everything is vastly overpriced. Remember when markets were last buoyant, pre-2008? That's how it was then.

    It is time for those who have any money at all to invest. It is time to hold on to anything you have that is worth selling unless you can find an end user who can afford (and is willing) to pay full price.

    It is at these times that, if you really need the money, you are going to be stuffed.

    Sorry to be the bearer of bad tidings, but that is the truth of today.
     
  3. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Public auction on GoDaddy go for less, so that might not be the best route to take.
     
  4. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Yes and no the last few months for domain sales have been solid. Now maybe not for average stuf. But June beat May by $100,000 https://tldinvestors.com/2020/07/sales-and-trends-june-2020.html

    The average sale price per name was up close to 5% which on the whole is not a bad %.

    Squadhelp said May was the best month they ever had. https://tldinvestors.com/2020/06/squadhelp-marketplace-stats.html

    It's just very random when the op mentions names at what they sell for, we need specific examples. I too have seen some good buys in the $200 range, you want that you need good price points to enter the market.
     
  5. AEProgram

    AEProgram Top Contributor VIP Blue Account

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    I feel that on GD, NJ and DC names are going for way more than they should in most cases. People are bidding with their emotions too much. Sometimes within days the winner is already trying to sell the name for what they paid or less.

    When you write "names that should go for 5-10 times more", why? Domain investors (this does not apply to people looking to use the name) are taking a significant risk when they buy a name. Most names will never sell and of those that sell, how many will return a meaningful profit?

    There is no newsletter or blog that covers all the names that didn't sell (wouldn't make sense), we only read about those that sell and without real experience you soon can think that all that happens in this business is sales.

    I think most people can safely drop 95% of their names and if they need the name again there is a good chance it will be available to handreg.
     
  6. Samer

    Samer Top Contributor VIP

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    Due to monopoly.

    Lack of options. and the few alternatives bad

    Samer
     
    Last edited: Jul 2, 2020
  7. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com Gold Account

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    Even if you promote th crap out of it?
     
  8. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com Gold Account

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    Thanks. I didn't specify "lately". I said "every time" which means it's not just a recent snapshot of domain sales on NB but overall even years past before Corona I have noticed the usual $100-$300 sale of good domains that I felt should have sold for 5-10X more.

    bottomline could proper promotion i.e. paying for advertising have made a difference? I feel like most of these were just domains that expired and have become "owned by registrar" and they just immediately listed it with "no plans".

    I just feel that maybe these are not good baseline examples of what truly good domains would sell at auction BECAUSE they do not benefit from proper promotion.

    or

    Does it really matter?

    Most will say. A good domain will sell itself so spending money to advertise the auction is wasted money.

    The people who would bid on the domain would eventually find the good domain and bid on it.


    But are we assuming that the people who would not have known about "the good domain" would have otherwise found it so they could bid on it?

    I mean most people probably too busy to track auctions for good domains.

    or am I giving advertising domain names too much credit?

    is paying for advertising domain name auctions the "magic bullet" to increase the final sold price on a domain auction?

    is there any data or research that proves this? or is it all just a crap shoot?
     
  9. Mike Goodman

    Mike Goodman Established Member

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    In retrospect I think most of your observations are correct. I have been picking up some prime domains, some for as little as $1. It really is breathtaking.

    Marketing is the key, of course. Not necessarily advertising though. It is more about time and effort than amount spent. Investigating to find out exactly where each domain fits, researching those specific businesses in that category or niche, finding out who is the correct contact within each business or organisation to approach. Ensuring the approach is made in a professional manner, with correct salutation, spelling and grammar. Each step in this process is equally important.

    Another approach is yes, use auction sites, but make an effort to drive visitors to your own auctioned domain(s). Use your own network contacts, social media or whatever else you have at your disposal. But for heaven's sake let as many people as possible know that you have an item for sale at that place at that time, or over that time period. This is all basic stuff whatever you are selling, not just domains.

    The domains I have picked up were on auctions or dropcaught. There was little effort at marketing. OK, some had made a good effort of writing up the domain including search numbers, adword costs and more. But a cursory glance at the auction site would have shown that valuable domains were not attracting worthwhile bids so why put them on that auction? It beggars belief.

    But these are just the standard basics. It doesn't even touch on the quality of what's on offer. You can't sell dogshit so why buy it? How do you hint at the buyer within an organisation that this offer could take away some of their pain without actually telling them how to do their job?

    And so it goes on.
     
    Last edited: Jul 2, 2020
  10. WhoaDomain.com

    WhoaDomain.com WhoaDomain.com Gold Account

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    thanks. side note. for someone who just signed up June 22,2020 you seem very knowledgeable about this sort thing.

    Are you an expert that once had an account here years ago and closed their account and now came back?

    I just realized this now when I checked your Joined Date.

    Welcome to Namepros. and thanks for your insight.
     
  11. Mike Goodman

    Mike Goodman Established Member

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    @WhoaDomain.com Thanks for the compliments. I'm actually very new to domaining but I do have a lot of marketing and strategy experience. I only found out about this site a day or two before I joined it a couple of weeks ago.

    I have seen the disastrous results of Lawson as Chancellor and the massive unemployment and hardship he caused, the bursting of the dotcom bubble in the noughties with similar consequences. How otherwise sane people with young families, desperate for incomes, tried all sorts of schemes to make money. The term "business consultant" was seen through as "unemployed". Currency trading, commodity futures and more were the "get rich quick" schemes people were so desperate for they actually borrowed money to participate in, and were subsequently in debt for the whole next generation.

    These are open but ignored symptoms of a sick society. Ever more centralisation, drawing resources inwards to one central, focal, point, destroying communities, starving the country of infrastructure maintenance investment for the Now Now society. Or that part of it which could still afford it.

    So to replace it all, with exactly the same symptoms and streams of victims, we have crypto currency ponzi schemes and domain name trading. Either is viable and profitable for the wary and discerning. Absolute bloody disaster for most.
     
  12. sircc

    sircc Established Member ★★★★★★★★★★

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    I don't see the problem. Investors are buying these domains, so the pricing is correct. Even though the drops are public, very few people outside of the circle are involved.
     
  13. sircc

    sircc Established Member ★★★★★★★★★★

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    Absolutely! Way more casualties than heroes.
     
  14. Josytal

    Josytal Top Contributor VIP

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    Can't understand, why advertise your domains at auction on third party platform?
    Are they not to earn commission by selling your domains? Why promoting them at your expense?
    You've got your portfolio with website. that's where you should concentrate your efforts. That's where all promotions should go. From there, you decide on next step. Don't do promotions where domainers are concentrated - unless you want to sell wholesale.
    You can DM if you need estimates.
     
    Last edited: Aug 15, 2020

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