question Who bids on Flippa and Godaddy domain auctions???

[Robin Hablani]

I was just going through Flippa & Godaddy domain auctions yesterday, I saw a lot of bids being placed...

I was wondering, are these investors or End users?

Do Investors pay that much??

 

[equity78]

I was just going through Flippa & Godaddy domain auctions yesterday, I saw a lot of bids being placed...

I was wondering, are these investors or End users?

Do Investors pay that much??

Mostly domain investors.

 

[Robin Hablani]

Mostly domain investors.

Thanks for your prompt response on this!!!

Just for my information, are they capable of spending 100s of 1000s of dollars on a single domain and hold them for long???

 

[equity78]

Thanks for your prompt response on this!!!

Just for my information, are they capable of spending 100s of 1000s of dollars on a single domain and hold them for long???

Absolutely, many domain investors like James Booth, Andrew Rosener, Michael Berkens, Braden Pollock, Elliot Silver and hundreds more have spent 5, 6 figures on a domain to hold or flip.

 

[h2o]

There are some end users who do bid/win on Godaddy Auctions, though it is not as common. I noticed that one name that went for about $3500 a few months ago was the owner of the .ORG version.

 

[Peak.Domains]

If someone spends $1000 on one domain, it costs them $10 per year to hold onto. After ten years, they're in for $1100.

If someone spends $10 each on 100 names, it costs them $1000 per year to hold onto. After ten years, they're in for $10,000.

It's considerably cheaper to invest in fewer, higher-demand names. Especially ones that have been vetted by the process of an auction, imo.

One rock-solid $1000 name is also a lot more liquid than 100 much less desirable names, at least I would imagine so...

 

[AEProgram]

What happens in domaining happens in many sectors. You have people that invest in stocks but always like picking these penny stocks or no name stocks. They all mention stories about penny stock millionaires, true, but a lot less common than those that pick blue chip stocks.

In real estate same thing, you have people that love buying cheap acres of land in remote areas, they will also tell of big companies that might show up and need that land.

The good names that become available go for more because more investors realized that its better to save up and invest in good names, then to own a bunch of names that are not great.

As far as who buys the names on the sites you mentioned, well, look at some names that sold a year ago, when I checked a while back most either went to a dead page or to a page showing the name is for sale. Some had coming soon and maybe one was a developed site or redirected to one.

 

[Braden Pollock]

In some ways investing in a $10 domain is far more speculative than investing in a $100k domain. If you hand register a bunch of names, there’s a high likelihood that they were available because no one else wanted them. Your investment will probably go to zero in a year. (Side note: There are a handful of investors who study brand trends and naming conventions and are particularly skilled at spinning up and identifying good hand reg names. But this volume game).
If I buy five premium names at $100k each, I’ve got five chances at $1mil payday (assuming a 10x return). I have a good shot at recouping my investment relatively quickly by selling just one of those names - even if I don’t get 10x.
Now let’s assume I need to quickly drum up some cash. I’ve got liquid assets. If I made good bets, I could probably wholesale my names for 10-20% more than I paid. If I made bad bets, I could still sell my names for something less than I paid. But the point being, I could wholesale this inventory in a matter of minutes or hours. A portfolio of $10 names can’t be liquidated very easily if at all.
Certainly, my strategy puts more dollars at risk per name but it’s a much safer risk IMHO.