I had a thought last night..

[Morph]

Right, so we know all lll.com are taken. All lll.info are taken and so on, but lets focus on .com.

So, lets for the purposes of this explanation (and nothing more) take the standard value of a reasonable lll.com as 5,000.

Mr Man wants to buy a lll.com , he can buy from a large number of people. Now we say only 5 of those people want to sell

They each give him a price, however, each of the sellers is aware that 4 other people will be offering prices to Mr man, and these sellers need to make a sale to pay some bills. The sellers therefore dock their prices and try and undercut eachother, in the process Mr man gets a lll.com for 4,000$. This process could continue through many sellers and the price will continue to drop.

Will this effect the global market or is it just a silly thing i thought of last night?

Debate.
Tom

 

[Fleege]

have another thought tom

I dont see how a buyer would be interested in just any lll.com - or would this buyer just want to collect lll.com

Maybe i need to read it again a third time. I think the lll.com market is very special and each transaction and marketing of such name is very special deal.

 

[Morph]

I took it as a Mr man wants a lll.com aslong as it's reasonable he will have it.

Kind of thing. It's not a greatly thought out concept from my end just a thought.

 

[oberheimer]

i don't think any lll.com will drop in price i think price will continue go up. Ok some people don't know what they are worth so they sell cheap (they think they made an ok deal) or they know what it's worth but need to sell for bills or they know what it's worth and looking for an end user.
There are so many people out there that buy lll.com so and more and more is bought buy an end user so there will be less in the reseller market. And less means more (higher price) lol im a designer so i had to write that

 

[Phronesis]

Once Mr Man buys the lll.com for $4,000 he will not want to sell it for less than that price. If someone buys it from him for $4,500, they too will want a profit. I see that factor driving prices up rather than down.

 

[Morph]

But say 3 months down the line Mr Man gets ill and needs to pay hospital fees, he might sell that lll.com for 3,500.

It's all very cirumstancial but possible?

 

[oberheimer]

sure he can buy for 4k and sell for 3 if he need the money (urgent) anything is possible in the lll.com market

 

[Phronesis]

But say 3 months down the line Mr Man gets ill and needs to pay hospital fees, he might sell that lll.com for 3,500.

It's all very cirumstancial but possible?

I think a situation like that would be the exception rather than the rule. You could use that argument to say the housing market would drop too. It's always possibel to find a bargain, but I don't see that scenario bringing down prices overall.

 

[dna]

Dot coms are overpriced and most are held by hoarders.
I expect a big crash.

 

[oberheimer]

Im just happy if people think there will be a crash, i can then buy cheaper lol good for me

 

[DOMiNIC]

Dot coms are overpriced and most are held by hoarders.
I expect a big crash.

Just about every other market is overpriced and overheated.

When they crash, Traffic Domains will go through the roof. Where else can you pick up an investment for 1 or 2 years the annual income. Wall Street and Mutual Funds will take over the traffic domain market place.

 

[mario06]

Dot coms are overpriced and most are held by hoarders.
I expect a big crash.

i agree ... after some time this will happend :imho:

 

[DOMiNIC]

i agree ... after some time this will happend :imho:

Never in a million years for Traffic income producing domains.

Your lucky to get 3.5 % interest at the bank. It's virtually impossible to find property that will produce enough rent to cover a mortgate, and the stock market will crash.

If I had a Fund Manager who only produced the average 7 % return, I would tell him he was being negligent for not diversifying into traffic domains.

Luckily I have my own fund. Made up of a few thousand income producing domains.

 

[cjcjcj]

Right, so we know all lll.com are taken. All lll.info are taken and so on, but lets focus on .com.

So, lets for the purposes of this explanation (and nothing more) take the standard value of a reasonable lll.com as 5,000.

Mr Man wants to buy a lll.com , he can buy from a large number of people. Now we say only 5 of those people want to sell

They each give him a price, however, each of the sellers is aware that 4 other people will be offering prices to Mr man, and these sellers need to make a sale to pay some bills. The sellers therefore dock their prices and try and undercut eachother, in the process Mr man gets a lll.com for 4,000$. This process could continue through many sellers and the price will continue to drop.

Will this effect the global market or is it just a silly thing i thought of last night?

Debate.
Tom

This is a question of price and demand. I think the problem with your line of thinking is that if people would sell for $4500 at any point, then the price was never $5000. However, if they were motivated to reduce costs purely as a result of wanting to sell instead of another person then this is a reverse auction where sellers drop their price to make sure they get a sale. As mentioned however this is hard to work when the market is not consistent - by this is mean domain names are not homogenous and are hard to compare.

 

[oberheimer]

im just going to say that i sold vof.com for $6 000 and bought it for $2 000 some months ago (3 i think, can't remember). Im now going to buy a new 3 letter now for about $8 000 so im just happy if people sell for a low price. And how can there be a bust if end users buy all the time, i had one end user for tog.com and he offered me $30 000 but backed out.
If the resellers was going to lower there price for some reason i will be there buying and as i said before there are more names that are owned by end users so less names to buy witch results in a higher price.

 

[Interneteca]

When someone buys a domain for x $, doesn´t want to sell it for less than x $. He doesn´t want to lose money, he wants to make money. ¿oK?

 

[Morph]

Fair points.
It was just a thought not serious speculation. All hyperthetical.

Nice replies