Why do many normal domains in Snapname go so expensive?

[kong707]

According to DNJournal http://www.dnjournal.com/archive/domainsales/2007/domainsales07-03-07.htm

Names that were sold for x,xxx $ at Snapnames in last month are MontanaWeb.com connected for $7,600, MalayalamSexMovies.com screened $7,400 and BootyTalks.com brought $7,211. Millf.com managed $7,100, Shortage.com squeezed out $6,988 and WeddingOrganizers.com tied a $6,643 knot. Other winners at SnapNames included Microcontrollers.com ($6,569), DealStore.com ($6,211), HipHopValley.com ($6,100) and PCHunter.com ($5,877).

Ok, some names are nice . But other names such as Dealstore.com , and PCHunter.com What made these domain name so expensive ? I did some research on Wayback machine and check their backlinks .There are nothing impressive .They were parking page and they do not have many backlinks. And the buyer who bought this name ,they just park them.No development or anything . Why they pay thousands of dollars for these ?

 

[accent]

The answer to this question is one of the keys to the future of the domain industry.

There are several players who will bid names into extreme prices and who buy huge numbers of domains. Some are individuals, some represent corporations. Perhaps the individuals are wealthy collectors who are sometimes more concerned with competing for the name than actual value, although for the most part I expect they are well informed. Corporations are buying names as a long term strategy. Their belief is that the entire domain market is severely underpriced and by cornering the market on the better names they can force major price rises over time. That is my interpretation.

They buy on Snap because it is the easiest way to get large quantities of better domains. Bonkerstwo posts here sometimes, look his posts up to get some insight.

 

[Kate]

I think the bidding frenzy is a result of the exposure. Everybody wants to get into the game and compete against each other, sometimes as a matter of pride.
Many domains are selling at end user rate or are downright overpriced as a result.
Also it's interesting to note that many of the domains sold would have been overlooked by the pros here... just look at the domains listed for sale here that do not sell and will be dropped to land at snap...
Maybe in a few years we will look at those inflated auctions like bargains but not for all domains. I have the feeling some people have money to burn.
Date.org 500K ? Dreamlife.com 171K ? For an ugly parked page ? I must be missing something.

...
Perhaps the individuals are wealthy collectors who are sometimes more concerned with competing for the name than actual value
...

Clearly, there are domain collectors.

 

[quality]

Well dealstore.com sounds very good 2 me I am surprised it went for less than $7k so what some think is expensive and not so good is cheap and good 2 others. It is a highly brandable name with good development potential.

 

[DotWeekly]

I was just talking to DomainSade about this.... MJE.com is at $15,000 minutes into the auction... Joking around, I said, maybe these people think SnapNames.com is the ONLY place to buy domains. lol But sometimes, I think this might be true. :blink:

I think some of these domains that go higher, is because of traffic, End-Users and that's the domain they want to use for there company etc.

People like Bonkers who spend other's money and do not really care. (Business) :notme:

Let's look into some numbers and try and figure out some prices.

MontanaWeb.com $7,600
MarketLeap.com says, 14 Links
0 Overture
It has a Forwarded Alexa rank of 419,645 Which ='s No Rank for the domain! (This could be one reason, and would be a huge mistake)
12 Years of Continuous Registration.
Google Returns "montana web" 83,900 not huge, but main returns are for Montana Web Cam.
To me, MontanaWeb.com is a HUGE mistake at $7,600 and I am going back to the Fake Alexa Rank, as to why this one might of went so high!
Com, net, org, info, mobi, us taken

MalayalamSexMovies.com $7,400
0 Links
4 years of continuous reg.
Alexa Rank of 7,347,948 (Not Good at all)
76 Overture with extension. (Out dated data)
1827 Overture for the term.
I would expect little to no traffic other than direct type in. Very High Price.
My guess, this domain sold for this price based on Outdated Overture results!

BootyTalks.com $7,211
0 Links
No Alexa Rank
5 yrs continuous reg.
173 Overture with extension. (Again way outdated material)
569 Overture for Term
Google returns "booty talks" 2,690 (Bad)
1 indexed page on google. (bad)
My guess, this domain sold for this price based on Outdated Overture results!

Millf.com $7,100
0 Links
No Alexa Rank
5 yrs continuous reg
Clear Generic Typo!
112 Overture with extension (Once again, WAY outdated material)
360 Overture for Term
1 google indexed page
22,700 google returns for "millf"


By looking at these, people are basing there buying on Overture (Very Sad)! Come on people. Overture was good when it Worked, but it's giving data from January 2007, That's over 6 months ago!

It's making me sick, so I can't look up the info on the others. lol

 

[Spade]

I was just talking to DomainSade about this....

Yah... Agreed. People are really overpaying for some of these domain names. I think its giving a lot of other people a sense of extra value in their domains, making people feel they can get unreasonable prices.

Also, this is probably why Enom decided to send their expiring domain names to Snap...

Justin

 

[gazzip]

Yah... Agreed. People are really overpaying for some of these domain names. I think its giving a lot of other people a sense of extra value in their domains, making people feel they can get unreasonable prices.

Here's a weired one, webserve.com sold for $25,250.00 at snap last week, its now listed for sale at sedo for an asking price of $10,000 Hmmm

.

 

[Spade]

Here's a weired one, webserve.com sold for $25,250.00 at snap last week, its now listed for sale at sedo for an asking price of $10,000 Hmmm
.

I Smell a counter offer in the works.

 

[Jo]

Bidding wars. Sometimes when more than one person wants a name, it makes the other people believe it is more valuable. (And some people can't stand to lose.)

As for the domains dropping. Personally, I can't see any value on those that you listed. They are better off buying from Moniker's auctions (and other domain auctions) there has been some nice generics going for a lot less then some of these outdated Overture buys.

The Montana one might have been so popular because of the age of the domain...1995. That would give it more value and also it's a geographical domain. Those seem to be hot.

I Smell a counter offer in the works.

You have to have your domain appraised before you can list for more than $10,000 on Sedo.

 

[gazzip]

You have to have your domain appraised before you can list for more than $10,000 on Sedo.

You can list it in uk £ 10,000 which is = $ 20,360 (strange but true :blink: )

I thought if you put a price on it and someone offered you that price you cannot raise it ?


.

 

[Spade]

You have to have your domain appraised before you can list for more than $10,000 on Sedo.

I still smell a counter.

 

[DotWeekly]

Here's a weired one, webserve.com sold for $25,250.00 at snap last week, its now listed for sale at sedo for an asking price of $10,000 Hmmm

.

WebServe is a large hosting company in Canada and they rank #1 on google for Webserve Web serve and they bid up to $21K, so that's why I think this one shot up so high. Then the price, just must of excited Bonkers to toss in a bid of 25K which made freakinvibe1 bid $25,250 and win.

I think the Sedo listing is "Old" as they do not remove domains sometimes.

 

[Aggro]

I think the bidding frenzy is a result of the exposure. Everybody wants to get into the game and compete against each other, sometimes as a matter of pride.
Many domains are selling at end user rate or are downright overpriced as a result.
Also it's interesting to note that many of the domains sold would have been overlooked by the pros here... just look at the domains listed for sale here that do not sell and will be dropped to land at snap...
Maybe in a few years we will look at those inflated auctions like bargains but not for all domains. I have the feeling some people have money to burn.
Date.org 500K ? Dreamlife.com 171K ? For an ugly parked page ? I must be missing something.

Clearly, there are domain collectors.

Some good, a lot mediocre...

Same phenomenon with all the live auctions. It's virtually all domainer 2 domainer.
Think about it: most holders have in many cases had them for 7/8/9/10 yrs.
Obviously in all that time no fabled big pocketed "end user" came knocking on the door with bags of money that met their expectations. Note how these old-timers are all now coming out of the woodwork and flooding the auctions with inventory. Make hay while the sun shines, right...
Buyers will be ~100% domainers. And then some do the hot potato flipping at a later auction...
Where art thou, end users?
(oh wait, sales are all subject to NDA...)

As you alluded to, a lot of it is auction frenzy or "positive reinforcement" of seeing 'respected peers' also in the same auction biddin 'em up...
The moment of winning is the greatest thrill these bidders will ever feel short of taking viagra and wearing ribbed condoms..

"Bubble" is on a lot of people's tip of their tongue in certain cases. But no-one wants to call bubble...because:

1/ bubbles are only known with certainty after the event

2/ despite what most privately feel, everyone wants some of it to rub off on them on their domains...


All par for the course really, the same with nearly every asset class: art, private equity etc..very frothy indeed.
Call it asset inflation.


(I believe date.org sold for $150k)

 

[gazzip]

The moment of winning is the greatest thrill these bidders will ever feel short of taking viagra and wearing ribbed condoms..

Somehow I very much doubt their lives are that sad :lol:

If the likes of Vaxis are reportedly making around $70 million a year from their domains (in one way or another) then "I assume" they can somehow manage to write those expensive acquisitions off before they pay the tax man his cut at the end of the year. Interest on $70M would be a fair old whack too !



Anyone else have ideas on this aspect or am I talking sh** :lol:


.

 

[Coastalguy]

Nice thread.

Great read.

ST

 

[Ronald Regging]

Their belief is that the entire domain market is severely underpriced and by cornering the market on the better names they can force major price rises over time. That is my interpretation.

Bingo... Im not one of these people unfortunately who can afford to do this... but the domain market is highly undervalued.

 

[kong707]

Well dealstore.com sounds very good 2 me I am surprised it went for less than $7k so what some think is expensive and not so good is cheap and good 2 others. It is a highly brandable name with good development potential.

Refers to this thread at domainstate http://www.domainstate.com/showthread.php3?threadid=77966

I used to own this domain (dealstore.com), sold it on eBay in 2003 for about 35 bucks.

Here's the record from my Dotregistrar account showing I registered it:

03-16-2003 DEALSTORE.COM 1.00 1.00 Add Domain

I am not joking either. The guy (who bought a group of names from me on ebay) let his names expire from Dotregistrar last month after holding them for a few years, I am surprised he did not renew the best ones. I tried to email him, and offered him $400 for the list of 15 names or so he let expire. No response.

Interesting, Dotregistrar chose not to take the names for themselves, especially dealstore.com, as they usually do.

Oh well. Thanks ebay, to date I count some $20k in names I gave away. NEVER sell names on ebay. When I realized how stupid I had been, the damage was done. And ebay bidders wont bring the price up to what is reasonable. So, in a sense, many of my ebay viewers at that time lost out buy not grabbing these names I was selling for almost nothing. Back then everyone was finicky and "every name sucked". Now watch everybody clamor for mediocre names.

eBay (and my ignorance) cost me a lot. It was a small concellation that a couple years ago I shorted ebay stock at 108 and rode it down to 40, making some $30k in only a couple months.

 

[holdem8]

Great thread!

I think most of them are really overpriced, especially the non-generic ones.

But it is good for sellers with very good, brandable names..hopefully these people can continue splashing their cash around like that.

It is good times for the domain industry nowadays!

Al

 

[Aggro]

"Bubble" is on a lot of people's tip of their tongue in certain cases. But no-one wants to call bubble...because:

1/ bubbles are only known with certainty after the event

2/ despite what most privately feel, everyone wants some of it to rub off on them on their domains...


All par for the course really, the same with nearly every asset class: art, private equity etc..very frothy indeed.
Call it asset inflation.

**POP** **POP** **POP**
...bubbles a-poppin' everywhere

Lovin' the carnage in the markets...very healthy

Inevitably, will have ramifications in the drop auction market

 

[billinchina]

I have the feeling some people have money to burn.
Date.org 500K ? Dreamlife.com 171K ? For an ugly parked page ?

Yep, some people have money to burn.

Some have grand development plans.

When you make thousands upon thousands of dollars each day, it's easy to buy what you feel like buying. Art collectors do the same thing. Not every item needs to be profitable. The total group of items needs to be profitable and you have to enjoy what you buy. Yea, they could probably do something better with their money elsewhere in certain circumstances, but if they feel like buying a name, then they will buy the name.

I'm just glad that the big guys are nice enough to leave some bones for the rest of us to buy at profitable prices.

My 2 clicks on the matter...