Yesterday Dropcatch caught a name I wanted. I didn't want to use their service to get the domain because I didn't want to pay a bunch of money for it when other domainers jumped into the auction and drove the price up. The name is now listed at HugeDomains for $2,395. In hindsight I should have just backordered the domain and fought it out with whoever else jumped in the auction because I know it would not have gone up to $2,395.
Yeah, and the real kick in the groin is that HugeDomains is paying pheenix prices to catch these names with DorpCatch by using the Discount Club Beta since they are a premium customer. So if there was no backorder, and HugeDomains picks it up, they snatched it for under $15, whereas everyone else has to place a $59/$69 dollar backorder. They have been snatching low price high resale value names i've had my eye on for the past month using DC and paying a fraction of what most of us would have to pay.
It's a dirty dirty game out there with DC.
Drop auction prices could well increase to the point where flipping is no longer viable. Every auctioned domain will need a development plan to make a profit.
This is inevitable for domaining, and will happen within the next 6 years, maybe sooner with the awareness campaign of the gTLD program.
It's similar to the concept of market saturation. Domaining is profitable due to market inefficiency, eventually the rest of the world will catch up.
That's why it's important to start NOW. Even someone that starts today can be successful, but in a few years time that will be over.
If you really think about it, out of the 7 billion people on this planet how many serious domainers do you see that do this day-to-day; maybe 500 - 1000 - and thats a high estimate. When 'big' names drop there are only about 200 - 350 people that have placed a backorder.
Conversely, if someone dropped a 60lb palate of one-hundred dollar bills in a mall parking lot, there would be more people tearing at that payload than there were at the last high value domain drop. People know the value of money, but don't know about domains.
Most business are still clueless about domains, which means the general population has an ever lower knowledge of domains. Have you ever received a $40 offer for a domain you paid at least $400 for; most of the times it's not a negotiation strategy - it's just ignorance.
Domaining is not over saturated yet, and it won't be for at least 6 years, but every year those .COM's get more and more expensive; despite our precious gTLD program.
I predicted on NP's that other backorder companies would change their model. Of course I was thinking of SnapNames/Namjet. So Pheenix were the first one to do it. Makes sense, imho.
I agree, saw this one coming with a DC service as well - they will all do it eventually.
https://www.namepros.com/threads/will-not-use-dropcatch-com.855123/
this is the evolution of dropcatching, you better get your names where you can and hold on tight. I never thought I would find myself saying, "I wish NameJet caught that one."
It will be some time for SN and NJ, because they have access to higher quality names and they don't have to rely on the same business model as DC and PHE.
It makes sense for Pheenix, they were almost on their last leg. It's a shame, because Pheenix was pretty much giving away caught domain names, 90% of the time if you caught a name with them or got one through their 'shop' it was a heck of a deal.
