Drop-catching: Your way

[S-B]

Hello everyone,

I am working with a partner to develop a new drop-catcher. I am interested in discussing the project and listening to your suggestions.

1. How much should a backorder cost?
2. How long should an auction run (3, 5 or 7-days)?
3. What is your preferred payment method (Paypal or...)?
4. What are the most important features you need?

I will also need some beta testers in he coming month.

If you're interested in the service and would like to be part of the development process, please answer the question above and let me know that you're interested.

Please keep all comments, suggestions and beta requests in thread.

Thanks,
Shane

 

[Hybrid Names]

I don't have much experience on drop catching, but every day I learn something new.

most people still learning here

 

[S-B]

Any other thoughts? I'm all ears!

 

[muttus]

1.) The accounts will automatically be setup.

2.) I'll make note of that. I'm not really sure that will work from a business standpoint. I'll check into it though!

3.) I'm not sure. We should have the website up by the 1st. Fingers crossed! :P

2) This I think is very important question for you. I am just small time domainer which spends about Mid - high $xxx a months on domains. I have tried few dropcatching services and ultimately doing all my backorders with providers that do not show bids on domains. About 30% of the domains I back order are domains which I hope will not have competition but I still value enough to justify backorder cost. Most of the domains I end up having are those which had no to little competition. This way I get around 10-15 domains a month. Maybe this seems little to you and I do not know how much does it cost you to dropcatch a name and whether demand for the name increases the cost or whether trying to dropcatch large quantity of names is doable. But if the cost of obtaining domain in the catch would be half the fee 30$ you would still get nice sum on the end of the month. Of course high rollers will give you more profit on each domain, but do they really care if you display numbers of bids on YOUR page since they submit parallel backorders on all viable places anyway? They can go to Namejet or other places to see which domains are making splash and order with you (if they consider your service as contender)

In short what I am trying to say. Having stats about bids and popularity does in many cases discourage me to place a bid since I do not feel like spending time and hopes on domain somebody else is likely bid me over.

 

[Asfas1000]

Perhaps only display on the homepage the domains that have 5+ backorders.

 

[S-B]

2) This I think is very important question for you. I am just small time domainer which spends about Mid - high $xxx a months on domains. I have tried few dropcatching services and ultimately doing all my backorders with providers that do not show bids on domains. About 30% of the domains I back order are domains which I hope will not have competition but I still value enough to justify backorder cost. Most of the domains I end up having are those which had no to little competition. This way I get around 10-15 domains a month. Maybe this seems little to you and I do not know how much does it cost you to dropcatch a name and whether demand for the name increases the cost or whether trying to dropcatch large quantity of names is doable. But if the cost of obtaining domain in the catch would be half the fee 30$ you would still get nice sum on the end of the month. Of course high rollers will give you more profit on each domain, but do they really care if you display numbers of bids on YOUR page since they submit parallel backorders on all viable places anyway? They can go to Namejet or other places to see which domains are making splash and order with you (if they consider your service as contender)

In short what I am trying to say. Having stats about bids and popularity does in many cases discourage me to place a bid since I do not feel like spending time and hopes on domain somebody else is likely bid me over.

I completely understand your point and I appreciate you for bringing it up!

The problem I'm having is I still have to generate revenue. Sure our users could use NameJet's lists to see what's trending but that takes away from the functionality of our site. Further, if users do in fact find the domains on NameJet then backorder them through the site, the competition will still be there.

Doesn't that defeat the purpose?

 

[S-B]

Perhaps only display on the homepage the domains that have 5+ backorders.

If the launch is successful, that would be a LONG list.

Let's keep our fingers crossed that the platform has that wonderful problem lol.

 

[Compassion]

I imagine a verification process and signature required - similar to NameJet -if bids are over a certain amount or for all bids is the question...

The idea of $30 per backorder is great. This is what will put you ahead of the competition. After a great launch, one of the competitors probably will want to buy you out for less than you could get later.

Offering afflliate accounts may be crucial in the beginning. It is important that the entire industry begins to recognize your company as the least expensive and most ethical service. Smaller to medium size sites blogging and promoting the service will help build trust, brand recognition and inevitably prime the subconscious that your site is the preferred drop catch provider.

Integrating with Flippa as an alliance is probably already in the plan....Though important to keep them distinctly different, especially if Flippa buys a majority share later.

Your connections probably can land you awesome exposure there - pre and post launch.

The exit strategy could be to reach peak usage in 2- 5 years and then sell a majority share to Flippa or another web company that may benefit greatly from such a site that undercuts the competition and offers a better service.

There is the $x,xxx,xxx +++ payout and you can make sure to retain a small piece that earns passive revenue for you.


Every business is a spinning top.

When the business is spinning the fastest with no wobble it's time time strategically exit...Or if you dare, go the other way and not sell the main business, you could leverage it, so you can swallow other websites/apps/companies instead.

Though it will be pretty tempting to accept a huge buyout years down the road after all the hard work got your site to be the most successful d/r/o/p/c/a/t/c/h/e/r/.



Indeed add me as a beta tester

 

[S-B]

I imagine a verification process and signature required - similar to NameJet -if bids are over a certain amount or for all bids is the question...

The idea of $30 per backorder is great. This is what will put you ahead of the competition. After a great launch, one of the competitors probably will want to buy you out for less than you could get later.

Offering afflliate accounts may be crucial in the beginning. It is important that the entire industry begins to recognize your company as the least expensive and most ethical service. Smaller to medium size sites blogging and promoting the service will help build trust, brand recognition and inevitably prime the subconscious that your site is the preferred drop catch provider.

Integrating with Flippa as an alliance is probably already in the plan....Though important to keep them distinctly different, especially if Flippa buys a majority share later.

Your connections probably can land you awesome exposure there - pre and post launch.

The exit strategy could be to reach peak usage in 2- 5 years and then sell a majority share to Flippa or another web company that may benefit greatly from such a site that undercuts the competition and offers a better service.

There is the $x,xxx,xxx +++ payout and you can make sure to retain a small piece that earns passive revenue for you.


Every business is a spinning top.

When the business is spinning the fastest with no wobble it's time time strategically exit...Or if you dare, go the other way and not sell the main business, you could leverage it, so you can swallow other websites/apps/companies instead.

Though it will be pretty tempting to accept a huge buyout years down the road after all the hard work got your site to be the most successful d/r/o/p/c/a/t/c/h/e/r/.



Indeed add me as a beta tester

Hi Compassion,

First of all, I would like to thank you for your great response.

I would like to avoid the manual verification process. It's a headache for both parties! I'm just stuck between a rock and a hard place. If I decide to accept deposits instead I will lose some users. If I don't require anything to bid, the marketplace could be riddled with shill bidders and bad catches. This is the primary problem I'm working on at the moment.

Honestly, I've pitched my idea to a few registrars and have already had offers for partnerships/investments. People seem to love the idea and see the potential for disruption. However, I want to keep the equity now because it will be worth more in the future. I rather bootstrap it and maintain control.

I've thought about an exit but I'm looking to build the best platform out there. One of the key factors, I believe, is incredible customer service. It's something the industry as a whole lacks. While a nice payday would be great, stable income would be better for me.

I will definitely contact you with information when we are ready for beta testers!

Thanks again.

 

[Compassion]

I would like to avoid the manual verification process. It's a headache for both parties! I'm just stuck between a rock and a hard place. If I decide to accept deposits instead I will lose some users. If I don't require anything to bid, the marketplace could be riddled with shill bidders and bad catches. This is the primary problem I'm working on at the moment.

This is the #1 riddle when I run the whole venture through my mind and think it forward.

Within every conundrum there is an answer to the question.

A streamlined verification process is the golden key.


What about a one time membership fee?

 

[S-B]

This is the #1 riddle when I run the whole venture through my mind and think it forward.

Within every conundrum there is an answer to the question.

A streamlined verification process is the golden key.


What about a one time membership fee?
and a transparent trader rating system with usernames

I couldn't agree more. I just have a hard time asking people for something I won't provide. I don't like providing any type of proof. Why should anyone?

A 1-time membership fee is an interesting idea. Also, transparent bidding names will be present. A trade rating system wouldn't be necessary because we don't plan on auctioning off 3rd party names.

 

[Compassion]

The one time membership fee may be the midway point between the loss of members and bad catches/shillbidding

Also helps cover costs.

Verification for higher priced bids seems to be a must for a variety of reasons.


Offering some tools or other free software, etc with the membership may be a cool concept to attract people willing to pay $20 - $60 for a membership

 

[S-B]

The one time membership fee may be the midway point between the loss of members and bad catches/shillbidding

Also helps cover costs.

Verification for higher priced bids seems to be a must.


Offering some tools or other free software, etc with the membership may be a cool concept to attract people willing to pay $20 - $60 for a membership

Very interesting idea. I thought a refundable deposit would be more attractive than an up-front membership fee.

The more I think about it, the more I believe you are correct. Verification is a must. I will just have to figure it out and find a way that is the least intrusive while protecting members from fraudulent activities.

It's funny, the bigger tasks seem to be easier than the small details!

 

[muttus]

What is the meaning of bad catch?

 

[Hybrid Names]

For verification You can Charge $1 to $50
after success credit card verification just refund that amount (instant refund/24 hour refund) or user can use it as a credit

 

[S-B]

What is the meaning of bad catch?

I was referring to a domain we caught that the buyer doesn't pay for.

 

[S-B]

For verification You can Charge $1 to $50
after success credit card verification just refund that amount (instant refund/24 hour refund) or user can use it as a credit

That's an interesting thought. What do you think about a 1-time membership fee?

 

[Hybrid Names]

That's an interesting thought. What do you think about a 1-time membership fee?

yes it's a good idea too but membership fee must be average (as you can see most people don't have dnf membership around $100 a year)

You can also add a another option like User will get his/her membership fee back in his account after reaching certain amount of transactions or use that fee as a credit to buy more BOs

 

[muttus]

I am generally against membership fees ... there are too many scams on the internet where they offer you gold from heaven for just a small initial fee and we know how it ends . I think membership fee has important role if you want to get exclusive once the business model already works and its proven, but in the initial phase that can deter many potential customers not allowing you to develop and test every potential revenue stream.

 

[Compassion]

You can also add a another option like User will get his/her membership fee back in his account after reaching certain amount of transactions or use that fee as a credit to buy more BOs

That's a great idea.

 

[S-B]

yes it's a good idea too but membership fee must be average (as you can see most people don't have dnf membership around $100 a year)

You can also add a another option like User will get his/her membership fee back in his account after reaching certain amount of transactions or use that fee as a credit to buy more BOs

Very true. On the same hand, if the membership fee was $100... You'd more than make up for it within 3 backorders (based on the rates of the competitors).

I do like the idea of a refundable membership but that goes back to my refundable deposit... Just under another name.

:P