NameSilo

What causes a "run" on bids for mediocre domains at auction?

Labeled as question in General Domain Discussion started by Avtar629, Apr 20, 2019.

Replies:
2
Views:
235

  1. Avtar629

    Avtar629 MarketDN.com Gold Account VIP

    Posts:
    6,929
    Likes Received:
    6,370
    I've seen plenty of domains where it boggles the mind why it has so many bids. What is really happening in the background to cause this on certain low quality domains?

    What's the psychology behind it? or is it all just maths?

    What I mean is I've seen some domains with tons of bids and then see the domains are either 10-19 years old. is this the only reason? Do people check the traffic on each domain?

    or is it really just because of the quality of the domain?

    or is it because the big money was spent on promoting the domain auction either on Namebio or Domaining or DSAD.

    I've been advised even by Godaddy to only spend money on featured ads for your best domains.
    makes sense but what if that's the case and most domainers do follow this rule.

    Then I assume domainers don't spend money to advertise their mediocre domains. yet I've seen such domains get up to $300-$500. This is still good ROI.

    but how did such domains get up to that price? is it shill bidding as it's been mentioned and suspected on here for sites like namejet or even godaddy?

    I'm always impressed by auctions for mediocre domains that end up getting at the very least $200-$300.


    because that means better domains can get $500-$1000 or maybe even $2000.


    the other thing is are paid promotions necessary just to get as many bids on a domain auction after which there is a snowball effect?

    I know people filter domain auctions by how many bids (if any) they have. is that why some domains and their bid counts simply explode?

    as I've experienced before. I listed domains for auction before and got no bids. which is ok. because it was free to list. but I did spend money on promotion on Namebio.

    I don't want to repeat that for each and every single domain I own and get no bids. I'll go broke.

    So what's really going on with these mediocre domains getting so many bids?

    (nothing personal to the mediocre domain owners who sold their domains for good money. More power to you. Buy how did you do it?)
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

    Posts:
    8,349
    Likes Received:
    7,620
    A lot of it is just social proof.

    The thought process goes like this; if a lot of people are bidding the domain must be good.

    I will say the math does not make sense on a lot of final auction prices on marginal domains.

    If you buy a domain for mid $XX to low $XXX then a 1-2% turnover with an average sale price of $2500 - $5K makes sense over time.

    That same model does not work when the prices start approaching mid $XXX or more. So unless someone has the ability to sell at a far higher turnover rate or for far higher average prices then it doesn't work.

    I think some people just have more dollars than sense.

    Many people seem to invest before they have a good understanding of the market, or even what a good domain is. As these people leave the market more new money comes in and the cycle repeats.

    Brad
     
    Last edited: Apr 20, 2019
  3. Avtar629

    Avtar629 MarketDN.com Gold Account VIP

    Posts:
    6,929
    Likes Received:
    6,370
    do some people who sell mediocre domain simply have their own outlets which they created for themselves like a twitter account with 10,000 followers or instagram.

    I mean I have a linkedin with over 18,000+ followers. I've tried posting some domain auctions on there an ridiculously. no bites.

    it's easy enough to just make a blank statement like "your domains suck. that's why you got no bids."

    but we've all seen some ridiculously crazy !?#$#?#@% domains that just make sense why they got $500-$1000 or even more on them.

    I swear sometimes it's very suspect and it really throws off the data on.

    are most of these successes just flukes or is it shill bidding that I keep hearing about?

    off subject. but what bothers me too are some pretty nice domains that were snatched up for the cost of a dropcatch order at dropcatch.

    I can't help thinking why didn't the domain owners of these domains simply list them at auction?

    I mean some are pretty good. some are even way better than mine yet someone let them go? did not even bother to just send them to auction?

    I assume most of the owners of such domains were domainers just like us.

    Did they think their domains just would not sell at auction?

    The quality of the domain is proven when someone paid a Dropcatch to grab it.

    So for sure the domain had value.

    I really don't know what to think anymore about all this.

    This is why I hesitate to submit my domains. Too many "what ifs"

    I have some pretty decent domains but I suspect they would just get lost in the mix over at all the different domain auctions factor in the cost of promotion.

    They it becomes a real gamble.

    Never liked gambling.
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!

Share This Page

NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...