Why Not Place a Reserve

[domaintrades]

When I look at some auction sites, such as Flippa, I notice that some people don't always place a reserve on their listings.

I can understand it if the domain is a poor one, and the seller is just wanting to get rid. Or, if the domain is due for re-registering and the owner doesn't want to pay for that.

But, some domains are pretty decent, and probably deserve to command a higher price than not having a reserve sometimes brings.

Obviously that's not always the case, some listings without a reserve still fetch a good price, though whether it's what the seller really wanted we don't know.

Just a thought, anyway, something I'm trying to figure out.

 

[Kuffy]

I can think of two reasons.

The site charges to place a reserve on the price.
The name is a registrar sale, and they just want to get what they can for a name.

 

[boker]

I can think of two reasons.

The site charges to place a reserve on the price.
The name is a registrar sale, and they just want to get what they can for a name.

I don't think that it's neither of the two...regarding flippa and not only, probably it's valid for most marketplaces, bidders can choose 'no reserve' in the search criteria, so if you don't have a reserve, probably you will have more bidders and if you have more bidders, some are checking just the auctions with a certain number of bids, thinking that these auctions worth their time. So, in the end everybody is hopping for a chain reaction, that in the end will bring them more views and implicit, more money.

 

[deez007]

On marketplaces like Flippa for example, when a good domain doesn't have a reserve on it then it often turns into a bidding war... people get more emotionally attached to the sale if they have placed a few bids... the other benefit would be that when there are several bids on the domain then it would also appear under the "most active" listings which would get more eyes on the domain... it's still risky, I have seen listings go both ways...when it works out in favour of the person selling... and also seen it go south when the seller ends up selling the domain for way less than it's worth because only a few people bidded.

 

[Wannabean]

It's about generating bidders and interest in a name.

There are a lot of auctions on flippa that go round and round with stupid reserves that never get met.

 

[comati]

a no reserve gets more bids. lots of auctions don't reach reserve so people that wasted time in the past will tend to avoid auctions with reserve.

 

[domaintrades]

When I look at some auction sites, such as Flippa, I notice that some people don't always place a reserve on their listings.

I can understand it if the domain is a poor one, and the seller is just wanting to get rid. Or, if the domain is due for re-registering and the owner doesn't want to pay for that.

But, some domains are pretty decent, and probably deserve to command a higher price than not having a reserve sometimes brings.

Obviously that's not always the case, some listings without a reserve still fetch a good price, though whether it's what the seller really wanted we don't know.

Just a thought, anyway, something I'm trying to figure out.

 

[domaintrades]

Yes I can see the auction generating more interest if there's no reserve, though as has been mentioned it can sometimes go horribly wrong.

I suppose it's important when setting a reserve to be realistic so that at the very least costs are covered, though for some domains a higher reserve is of course in order should the seller go the reserve route.

Oops I see my previous post is showing. That'll teach me to use my mobile instead of computer. It needs deleting.

 

[gpmgroup]

Only bid on names that have met their reserve, even then bidding on Flippa is just a massive time sink.

 

[Haris]

I only bid on no reserve auctions

 

[Kuffy]

If a listing fee is not significant, then I feel it's best to start an auction at you rock bottom price, but, as has been mentioned, that can cut out buyer frenzy, and buyer remorse.