I have become much less active in bidding within the popular domains that are being auctioned. Prices have gone up, up, up and I’m really struggling to understand how the buyers are going to be flipping these domains for a decent profit. I have a handful of bidder alias names on Namejet in my head that are responsible for driving up the prices of probably 75% of the names I backorder. I honestly have no clue what their business model is because these guys are dropping six figures every month or two it seems like and if I go back in the auction history and look up domains they have purchased in the past they are sitting there parked today… and we all know the state of domain parking nowadays. There’s a handful of people who are either going to cash in big in the future or get their asses handed to them. If you feel like it has gotten much harder to find good value at auctions nowadays you are not alone. Instead of overpaying and spending $10k on a domain that I’m going to struggle to resell and could take years I’d much rather go after the lower hanging fruit to keep the inventory churning and cash flow going.
Another note on Namejet, can they give a filter to remove Reserve Price domains from the search results, and can they give an option to remove domains I already have on backorder from the search results. Seriously, it would make scanning the list much easier if I don’t have to see things I already have a backorder on. And I’m not interested in seeing pages of reserve price domains which I know are being sold by domainers at reserves that I most likely won’t want to pay. Also, when I go to place my backorders I’ve had it happen multiple times where I hit the submit button and the site spins its wheels and after a minute or two it redirects me to their error page. WTF. To me, Namejet has gotten much more about their bottom line and much less about customer experience/satisfaction.
I wrote a time or two ago that I liked the site Expire.com and I would check out their auctions close to every day. Yeah, that has stopped after a month. I thought there’d be some value domains in there to jump on but after a month of checking out the site I more believe that it is domains that they are probably considering dropping. I haven’t once seen a domain I’d want to spend $500 on, and maybe 2 or 3 times there was a domain I would have taken a $100 shot on but someone was faster to the draw and bought them when they hit $100. Out of the 75 domains listed on the site as of this moment only 1 has sold. There’s a reason for that.
I feel like there’s something fishy going on at GoDaddy auctions with LLLL.com domains. In the past 2-3 months I’ve noticed (what I would consider) undesireable LLLL.com domains (having letters like q, z, x, w) that have sold for $1,500 and up (some over $2,500). And usually the bidding that brings these prices up happens the first day the domain appears on the site between two people (or one person with two accounts perhaps?). These are domains you’d struggle to get $100 for on the domain forums. I know LLLL.com domains have risen in value, but when the crappy letters are significantly outpricing the quality letters there’s something going on there that I don’t quite understand. I know that maybe there may be meaning (to someone) for some of these, or maybe they have a high pagerank, but right now on GoDaddy I see ZJGS.com at $1,580 with 5 days to go and every bid on that domain happened the first day it hit the auction listings. QSBB.com is at $1,525 with 5 days to go and again every bid on that domain was made the first day it hit the auction listing. ZFFD.com is at $1,500 with one day to go. And then the ones with quality letters are all sub-$300 like BGTP.com at $266 with 1 hour to go. I’m not going to do exhaustive research into these domains but this type of pattern is quite strange.
I think the gTLDs are taking some business away from domain sellers. The area I think this is happening in is the people who would have historically paid $500-$5,000 for a .com domain I believe are more willing to hand register a gTLD. Before, outside of .net and .org there wasn’t that many acceptable alternatives for people to pick from, but now they have a bunch of extra options. This is just my personal belief based on some interactions I’ve had with some buyers. Small sample size + my gut = take it for whatever its worth.
I had talked about the domain 2-2.com that I picked up maybe year (or less) ago. I thought a repeating numerical (despite the dash) would have some value in their crazy numerical domain world we live in. 4.cn told me they won’t auction it because of the dash and two brokers I talked to weren’t interested in listing it email newsletter. I’m not too familiar with numeric domains but I tried to think about it from a letter domain. Would I rather have a domain like C-C.com or would I rather have a domain like CKLM.com. I’d much prefer the first one every time because it is shorter, easier to remember, and would have a potentially larger end user base I could try to sell to. I guess this doesn’t equate to numerics because random NNNN.com’s are selling for low five figures and no one wants to touch 2-2.com (and I never mentioned price so it wasn’t a pricing thing). Lesson learned.
There was news that came out that said the state of Texas passed a vote that got them one step closer to legalizing recreational marijuana. I have a ton of marijuana geographic domains and I remember about a year or two ago someone was inquiring about a domain and they told me that my Texas related ones would be worthless because they live in Texas and Texas would never legalize. This is why you shouldn’t listen to the peanut gallery. If they do legalize I have Dallas, Houston, San Antonio, etc… domains that should bring in four figures+ a pop.