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How PrizeFight.com went from $105,000 to $9,000

Labeled as discuss in General Domain Discussion started by Arpit131, Mar 13, 2018.

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  1. Arpit131

    Arpit131 Active Member VIP

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    One of the recent sales that drew my attention was the domain name PrizeFight.com
    While the same name sold for $105,000 in 2006, it went for only $9,000 in 2018.

    What are the reasons you site for such a heavy decrease in the price of domain name?
    Do you suspect a trend/event that died out?

    Screen Shot 2018-03-13 at 12.29.50 PM.png

    Thoughts on this?
     
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  2. IMEZI

    IMEZI Top Member VIP ★★★★★★★★★★

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    no startup on the niche related to the domain name
     
  3. Arpit131

    Arpit131 Active Member VIP

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    Yes, but do you think it was motivated by a trend.
    If it was startup, did it die out?

    Resource?
     
  4. Michael

    Michael NameBio.com NameBio Staff PRO ICA Member VIP ★★★★★★★★★★

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    The first sale was retail and the second sale was wholesale, and the difference between wholesale and retail is generally around 10x. So it doesn't seem that surprising to me. Might even be on the high side considering that the plural retailed for $12k, although the plural is worse IMO.
     
  5. IMEZI

    IMEZI Top Member VIP ★★★★★★★★★★

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    back on 2006 term/keyword PRIZE were quit innocent :D nowadays most people using the keyword for teaser (bait) for acquiring personal info such as credit card etc, so people start to learn and aware for those MO and the result is the keyword were no longer attractive
     
  6. Arpit131

    Arpit131 Active Member VIP

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    How would you think a deal in wholesale be categorized, considering that there are multiple domains and saying that this particular name went for $9,000 in a wholesale deal may be difficult.
     
  7. Michael

    Michael NameBio.com NameBio Staff PRO ICA Member VIP ★★★★★★★★★★

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    Because it was bought the second time around by a very well-known domain investor, Braden Pollock, on an auction venue that has almost no retail buyers present. It's pretty safe to say that was a wholesale price.

    And the original sale was at Afternic which is almost exclusively retail, except when someone BIN prices a domain and doesn't know the real value and a domain investor snaps it up.

    The large difference between the two sales is almost entirely about wholesale vs. retail, although probably some of it can be attributed to the 12-year gap too.
     
    Last edited: Mar 13, 2018
  8. Arpit131

    Arpit131 Active Member VIP

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    thanks for the explanation.
    I would say, still a big depreciation in the price!
    Whether it is a wholesale or a retail deal, the decrease is significant.
    So, is it safe to say that $9,000 price would be a reseller price for this one?
     
  9. dhyane

    dhyane Established Member

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    Mere a past history a high price sale does not make it a valuable. It is not even a good brandable domain name unless a niche can be discovered for it.
     
  10. Arpit131

    Arpit131 Active Member VIP

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    But that definitely counts. Doesn't it?
    $100,000 for a 2 word is a big price! Specially this one. there definitely would be something!
     
  11. dhyane

    dhyane Established Member

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    I think next time its price will go below $9k.
     
  12. Kenny

    Kenny Member Services, NamePros Super Moderator Gold Account VIP ★★★★★★★★★★

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  13. Smiles76

    Smiles76 Established Member

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    They overpaid for the domain and held it too long. Many domainers assume that the value of premium domains always increase over time but that's not always the case.
     
  14. Bullock

    Bullock Established Member

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    Ok, but I don't understand the behaviour of the seller, it is apparently insane liquidate a domain in that wayO_o
     
  15. PAVAN

    PAVAN Established Member

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    its truly confusing. cant think of an explanation on this
     
  16. Michael

    Michael NameBio.com NameBio Staff PRO ICA Member VIP ★★★★★★★★★★

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    The seller at NameJet wasn't the person who paid six-figures for the name, it was YummyNames which is the company Tucows uses to warehouse expired domains. Although it's possible that someone sold it to Tucows and it might have even changed hands multiple times, my best guess would be that it expired and the registrar just kept it for themselves.

    Someone definitely took a bath along the way though, which is not uncommon after a retail purchase for multiple reasons. First, they might have made enough money running the site that the domain was already paid for multiple times over and they don't really care about selling for less than they paid. Second, getting something is better than bag-holding forever.
     
  17. johname

    johname Planet Futbol VIP ★★★★★★★★★★

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    Not all the reason, but there some element of Prize Fighting more associated with boxing than MMA, Boxing has been going down hill for a couple of decades.
     
  18. Bullock

    Bullock Established Member

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    Generally speaking, if the site was successful and profitable, why does someone sell at "discount" the domain name?

    IMO, this hypothesis is unreasonable :banghead:


    Kind regards:xf.smile:
     
  19. ecalc

    ecalc Top Member VIP ★★★★★★★★★★

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    Good reasons stated above. In 2006 the domain market was deep into a multi year bull run. Many domainers were making money hand over fist. A lot of that house money went into bigger names at prices never to be topped again.
     
  20. Michael

    Michael NameBio.com NameBio Staff PRO ICA Member VIP ★★★★★★★★★★

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    Because nothing lasts forever in business? Anyway it doesn’t really matter, the point was that the buyer who paid six figures wasn’t the seller this time around. It’s not insane for Tucows to liquidate a domain they probably got for free.
     
  21. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    I totally agree

    overture tool was still the standard in 2006 and I can imagine the name in question had decent OVT/w ext/

    to further speculate, I would assume this generic term received type-in traffic and therefore, at that time, it would have had a preconceived value which could be sold based on a minimum multiple of 10 years.
    which is much higher multiple than what many buyers are willing to pay today.

    if that name was making $15k a year, then at that time, $150k would be reasonable sale price.

    imo...
     
  22. Arpit131

    Arpit131 Active Member VIP

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    Any other views?
     
  23. TestCase

    TestCase Note: Doesn't play well with others. VIP ★★★★★★★★★★

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    This!

    At least this is the primary reason for the overall decrease in value of this domain.

    Boxing's popularity has been replaced by MMA and I suggest the (rather) old school term "Prize Fight" has been replaced by more the modern "Championship" within the sport of boxing, particularly in the US.

    https://trends.google.com/trends/explore?date=all&q="prize fight",boxing championship

    https://trends.google.com/trends/explore?date=all&geo=US&q="prize fight",boxing championship

    As to the actual selling price(s) in transaction(s) subsequent to the 2006 highwater mark, specific factors (acquisition price, owner's financial needs or health, etc.) would have to be looked at to understand the reason for pricing at the particular time of (a) sale.
     
    Last edited: Mar 17, 2018
  24. Kingslayer

    Kingslayer Active Member VIP

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    I think it’s because it wasn’t worth 6 figures in 2006.

    It’s not something i would go near now at $9,000 from an investment point of view, I’m not even sure it’s worth $9,000 to a end-user.
     
  25. TestCase

    TestCase Note: Doesn't play well with others. VIP ★★★★★★★★★★

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    I'm of the opinion that it was probably worth the $105k in 2006. BUT that was probably the last point in time it was worth that much due to changing interests -- and without succesful development (as pointed out by Kenny.) The GTrend graphs show 2006 as the last "big" peak for "Prize Fight".

    Yes, the value of the domain is currently a lot less now, but I'd still think it could be worth $XX,XXX to an end user that had a well thought out development plan and solid, long term financial backing. Heck, I'd think it would be worth at least low 5 digits to one of the Vegas big boxing venues or a sanctioning body.
     

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