question Why do domains sell for so much on auctions when there is no interest later on?

[domainhacks-931385]

Story goes like this

Domain sells for XXX+ on an auction platform with multiple bidders

Domain sits on Sedo with no offers for months after (sometimes no views either).

Why is there so much interest at the auction but no interest after?

 

[JohnnyNight]

Some people just like the "Game" of Winning a Bidding War...

It's a High for them...

and some are just adding to their maybe not so great collection and don't necessarily care if it is a great collection or not....

 

[Nerevar]

Maybe I am wrong, but it seems like the Expired Auctions that are getting all the attention.

I wish I could sell my domain at those Expiring Auctions

 

[Ms Domainer]

It's easier to deal with expiring domains, especially on Go Daddy.

You're not going to get ripped off, even if the original registrant renews -- you'll get a refund, at the very least.

Also, you're more likely to get a good deal.

 

[JohnnyNight]

Maybe I am wrong, but it seems like the Expired Auctions that are getting all the attention.

I wish I could sell my domain at those Expiring Auctions

Ha ha... Exactly....!! Crazy isn't it..!!

So how I finally sold some of my unexpired domains is having Shane from domainshane.com advertise them on this site..

He gets a big crowd of domain people on his site every day looking for his picks..

Charges $15 to advertise one domain, usually on the day of the auction and 3 for $35, it could be 3 for $40, just can't remember right now for sure...

If you have a domain that is really saleable you will get action...

I've sold a number of them in that way which I had registered at godaddy that got no action when I just put them up for auction, hoping people would somehow find them through a search..

 

[Name Trader]

It's easier to deal with expiring domains, especially on Go Daddy.

You're not going to get ripped off, even if the original registrant renews -- you'll get a refund, at the very least.

Also, you're more likely to get a good deal.

Agree about the not being ripped off, but their traffic numbers are all over the place. But like every other auction site, competition is now very fierce. I haven't won a GoDaddy expiring domain in weeks with bids between $50-$500. Even 1 year ago, I would probably only have won half of them, but at a cheaper price.

 

[Ms Domainer]

I don't pay any attention to GD traffic stats.

I base my decisions on the name itself and what my research shows about the term.

To base a price on Go Daddy stats would be laughable.

 

[Name Trader]

Yes. But you mentioned about not being ripped off. If you based your decision on their traffic stats, you might feel you were being ripped off. Which was the only reason I mentioned it.

 

[Ms Domainer]

Well, Stub, if one does not pay attention to stats as a metric, then one cannot be ripped off because of stats.

 

[domainhacks-931385]

Stub is right.

There are literally hundreds of trolls that lurk Godaddy Auctions.

Pick any name (that is semi decent of course)

Place a bid.

Expect to see 'Outbid'.

It is ridiculous. People bid just because someone else bid.

 

[tomcarl]

Well people will see value in something that anyone else sees value in.

This applies to all things in life, not just domain names.

Just like a dude can walk through a mall and not get a second look from women, yet the same exact dude the next day can walk through the mall holding the hand of another woman and all of a sudden he's getting a bunch of random glances.

People want what they can't have and they desire what others desire.

So all placing bids on auctions is doing is creating a sense of value for something or like posting a big billboard for the entire marketplace saying "Look, someone sees value in this name!" You just raised the question for everyone else "WHY?"

That 1 bid is going to attract a lot more glances = attract a lot more bids.

 

[Nitindomains]

Well people will see value in something that anyone else sees value in.

This applies to all things in life, not just domain names.

Just like a dude can walk through a mall and not get a second look from women, yet the same exact dude the next day can walk through the mall holding the hand of another woman and all of a sudden he's getting a bunch of random glances.

People want what they can't have and they desire what others desire.

So all placing bids on auctions is doing is creating a sense of value for something or like posting a big billboard for the entire marketplace saying "LOOK, SOMEONE SEES VALUE IN THIS NAME" You just raised the question for everyone else "WHY?"

That 1 bid is going to attract a lot more glances = attract a lot more bids.

Loved the example there.

 

[NameOmnia]

I am all with Tom Carl on this one and I add that the increased number of Chinese " domainers " has skyrocketed the price of many different kinds of domains.

It's also true that the auction format is created to make innuendos and emotional reactions where people seem to forget they are actually bidding with money and not with peanuts.

Let's not forget though shill bidding which is an unfortunate but huge part of this buying / selling model.

As for the domains being parked for eons on Sedo I think that all marketplaces are good as long as you have top premium names ( and you wouldn't need a marketplace for them ), " hot " ones ( please read other parenthesis.. ) or pay a ship load of money to be more visible...( in the meantime they make a fortune with paid appraisals and parking )

 

[domainhacks-931385]

Well people will see value in something that anyone else sees value in.

This applies to all things in life, not just domain names.

Just like a dude can walk through a mall and not get a second look from women, yet the same exact dude the next day can walk through the mall holding the hand of another woman and all of a sudden he's getting a bunch of random glances.

People want what they can't have and they desire what others desire.

So all placing bids on auctions is doing is creating a sense of value for something or like posting a big billboard for the entire marketplace saying "Look, someone sees value in this name!" You just raised the question for everyone else "WHY?"

That 1 bid is going to attract a lot more glances = attract a lot more bids.

Great observations. May I ask where you got the wisdom?

 

[tomcarl]

One of those VH1 Reality Shows

 

[Domainace]

That's the silver lining to falling into the "friend" category with a beautiful woman. Sometimes it's just better that way.

 

[Name Trader]

Well, Stub, if one does not pay attention to stats as a metric, then one cannot be ripped off because of stats.

Yes. Buy I was just warning others. My comments weren't directed at you.

 

[Ms Domainer]

Yes. Buy I was just warning others. My comments weren't directed at you.

Okay.

 

[domainhacks-931385]

That's the silver lining to falling into the "friend" category with a beautiful woman. Sometimes it's just better that way.

explain? How is it better?

 

[Domainace]

explain? How is it better?

No matter how wonderful you are, there will be some women who (even though they enjoy your company) just don't want to sleep with you. For whatever crazy reason.

Instead, you can have an uncomplicated relationship and an attractive date - which will attract other women. A guy with an attractive woman is "verified" in some weird way. As Tom said above. Even if they are told you're just friends.

Marketers call it "social proof." In an auction, it's lots of bidders.

If a successful domainer wants a name, others may want it more. There's an element of "it must be worth something if so-and-so wants it." Even though all domainers have some crap names in their portfolio.

Maybe the first .com name I went over $100 on, I bid up past $350 at Godaddy (back when you could get decent names there for well under $100). I felt pretty safe because somebody was willing to pay $340. It was registered in several other extensions as well. Years later, I still have that name. Never received a single inquiry on it. The other bidder? Who knows what his motives were. I may have to keep that name the rest of my life!

 

[equity78]

No matter how wonderful you are, there will be some women who (even though they enjoy your company) just don't want to sleep with you. For whatever crazy reason.

Instead, you can have an uncomplicated relationship and an attractive date - which will attract other women. A guy with an attractive woman is "verified" in some weird way. As Tom said above. Even if they are told you're just friends.

Marketers call it "social proof." In an auction, it's lots of bidders.

If a successful domainer wants a name, others may want it more. There's an element of "it must be worth something if so-and-so wants it." Even though all domainers have some crap names in their portfolio.

Maybe the first .com name I went over $100 on, I bid up past $350 at Godaddy (back when you could get decent names there for well under $100). I felt pretty safe because somebody was willing to pay $340. It was registered in several other extensions as well. Years later, I still have that name. Never received a single inquiry on it. The other bidder? Who knows what his motives were. I may have to keep that name the rest of my life!

Absolutely you see Social Proof even more on NameJet, I know people that only bid in auctions Frank Schilling is in, they are thinking if Frank thinks it is a good name, then it is a good name. They can't outbid Frank on xx,xxx names but have had a great thrill winning a $300 name where Frank was runner up.

Now there is a problem with that, Frank is in so many names now he is back at NameJet, for all the new gtld talk, he is winning .com and .net auctions everyday. So he may be bidding on some that he doesn't love, but others are winning thinking the name is GOLD, because they beat out Frank Schilling.

 

[Domainace]

Yes, a few problems with that. Frank can afford to hold more marginal names than most other domainers can. He has the funds, and he has a sales team. Aside from Frank, we can never know what the motivation of the other bidder might be. The bidder might be an end-user. The bidder might have a particular client already lined up. The bidder might be completely clueless, and thinking the name has value because you keep bidding on it. Countless possible scenarios where you don't want to be left holding an overpriced domain at the end.

But, then, it's human nature to catch the fever at an auction.

 

[equity78]

Let's not forget Frank's biggest advantage, he runs a popular parking/sales platform, he can see what gets traffic and what niches are seeing an increase in offers, a lot of data that is valuable data is at his fingertips.

 

[hookbox]

Personally I think their is a lot of behind the scenes bidding going on by Godaddy. It is very easy for them to know before the auction even starts which names are the winners based upon how many "Watches" a particular name gets. Every single time we click on "the eye" to watch a particular name it is recorded in their system and those names that get hundreds and hundreds of watches are the ones that get bid up. Also every time we click a name to see how many years it has been registered it counts as a "view" in their system. Yet another way they track the good names.

As a side note does anyone have a list of all Namejet user names and who each name coincides with? If you don't want to post it just PM me. Thanks

 

[NameOmnia]

Personally I think their is a lot of behind the scenes bidding going on by Godaddy. It is very easy for them to know before the auction even starts which names are the winners based upon how many "Watches" a particular name gets. Every single time we click on "the eye" to watch a particular name it is recorded in their system and those names that get hundreds and hundreds of watches are the ones that get bid up. Also every time we click a name to see how many years it has been registered it counts as a "view" in their system. Yet another way they track the good names.

As a side note does anyone have a list of all Namejet user names and who each name coincides with? If you don't want to post it just PM me. Thanks

Yes, you are right and GD was caught bidding against their own customers but the same applies to NJ, Flippa, SnapNames etc.
They all know how many people are backordering, watching, bidding, checking...and if they want they can drive ALL the auctions as much and however thy like