Drop Auction Prices...

[linker]

Whenever I look at the sales listed over at DNJournal I tend to shake my head over the prices of the domains picked up at SnapNames or Pool, or Enom, etc... I have a hard time taking them seriously compared to the actual sales from other places (Private, Sedo, Afternic, etc...)

Here is an example to illustrate my point:

WineAndCountryGiftBaskets.com $2,655

Now I am certainly not criticizing the domain buyer at all, I am simply using this particular one as an example, and the following statements are not directed specifically at this particular domain. Anyway, maybe whoever won the auction has a really good development idea and that is great.

What I am getting at is that the person who owned this domain before would likely have taken $100 or even less for it, but for some reason no one wanted it and they let it drop. Low and behold it fetches over $2,600 in a drop auction...

Is it that hard for two parties to come together over domains like this and work out a deal before the domain is dropped? I mean it is a very specific domain.

Sometimes I am tempted to let some of my domains drop just to see if they get bid up like this at auction...

 

[fonzie_007]

WineAndCountryGiftBaskets.com $2,655

What do you call the person who paid $2,655 for that domain? Either a sucker or an overly optimistic visionary.

 

[Dannoth]

What do you call the person who paid $2,655 for that domain? Either a sucker or an overly optimistic visionary.

A sucker and i brainless moron who has money coming out of his mouth.

 

[gazzip]

I wish some of these buyers would visit sedo more :td: It appears to have no incoming links but it does have an overture of 27 with extension

 

[fonzie_007]

I wish these people would look at my portfolio and start dropping that cash on each of my domains...

 

[gazzip]

I wish these people would look at my portfolio and start dropping that cash on each of my domains...

I think Namepros should start a "pretend" dropping names website - we would all be loaded at those prices :lol:

 

[fonzie_007]

There certainly is a market out there for droping names. Seems people bid higher for a domain when they think they have to get it now or never.

 

[linker]

I wish these people would look at my portfolio and start dropping that cash on each of my domains...

My point exactly, there are so many good domains available from so many domainers for a fraction of the cost of some of the ones picked up on drops. I bet there are a lot of NPers that have a domain that is better than that particular one, and many would have sold it for less than $2,600 ...

just my opinion of course...

 

[gazzip]

My point exactly, there are so many good domains available from so many domainers for a fraction of the cost of some of the ones picked up on drops. I bet there are a lot of NPers that have a domain that is better than that particular one, and many would have sold it for less than $2,600 ...

just my opinion of course...

I could'nt agree more -

 

[NP41215]

There certainly is a market out there for droping names. Seems people bid higher for a domain when they think they have to get it now or never.

Very good point.

The other factor is EXPOSURE (to the right audience who have plenty of cash).

My point exactly, there are so many good domains available from so many domainers for a fraction of the cost of some of the ones picked up on drops. I bet there are a lot of NPers that have a domain that is better than that particular one, and many would have sold it for less than $2,600 ...

just my opinion of course...

It means that the domain market is not efficient. There is not enough competition or infrastructure for buyers and sellers to freely exchange and participate.

Should the market become more efficient, you'll see prices to be less extreme (both high and low), and the amount of turnover to go up substantially.

An INefficient market means that there are situations of extreme under- and over-pricing. Unfortunately, such situation benefits the dealers (or big players) who are positioned to take advantage of such inefficiencies, not the average Joe.

In other words, INefficient markets are bad for the public, but good for insiders, brokers, dealers and market makers. Thus, there may well be vested interests in INefficiency if the profits are huge, as they appear to be.

 

[smub]

A sucker and i brainless moron who has money coming out of his mouth.

a little bit harsh but yea i want them to buy all my domains on the same ratio lol. I'll be a millionaire in couple of days than :P

 

[equity78]

I don't think the market is inefficient anyone with $60 can enter a snap names auction if you don't have a lot of money then you can't be in the drop business but that is true of any business if you wanted to get into WINE collecting you would need cash.

I think it is a subjective market, a lot of domains, a lot of topics no one person can know every industry and niche most would not have given Schwartz $100,000 for PARTNERCASH.com but someone needed it. FISH.com for a million not for me but I don't know that end users budget. I agree LInker $2650 seems high but not for a wealthy collector or end user that needs that name and sells a lot of GIFT baskets ever see the prices of high end gift baskets?

 

[linker]

I don't think the market is inefficient anyone with $60 can enter a snap names auction if you don't have a lot of money then you can't be in the drop business but that is true of any business if you wanted to get into WINE collecting you would need cash.

I think it is a subjective market, a lot of domains, a lot of topics no one person can know every industry and niche most would not have given Schwartz $100,000 for PARTNERCASH.com but someone needed it. FISH.com for a million not for me but I don't know that end users budget. I agree LInker $2650 seems high but not for a wealthy collector or end user that needs that name and sells a lot of GIFT baskets ever see the prices of high end gift baskets?

I agree, to a certain extent, I guess it is just hard to understand why the domain would not sell before it dropped, I don't think too many end users are picking up domains like this from a drop auction... MAybe I am wrong but I would say 90% or more of drop auctions go to domain speculators...

I guess I am just sore because I can't sell my "higher end" domains for anything close to what I think they are worth, but I know if I let some drop they would get a pretty high price at auction. Why not give the money to me, Snapnames has plenty :hehe:

 

[JMJ]

If you think it's crazy now wait until if/when Verisign gets its way with CLS. Offshore registries and fraudulent bids are going to be the talk of the town.