The TRAFFIC auction results were disappointing as none of the big ticket items sold. This could be blamed on one of two factors (or a combination of both)… reserves too high, or the right buyers not being present. Personally, I think Cheese.com is worth $1M to a company like Kraft but unless there is a representative from Kraft then the bidding won’t come close to $1M. Domainers are not going to buy a domain name for near what an end user would so the domain goes unsold.

I personally did not like the mix of all the extensions there. Touchdown.co, sub.co, goldjewelry.co… we see what the .co’s are selling for and having these names in the auction lessened the quality of inventory IMO. If you want to have a fancy restaurant you don’t put a hotdog on the menu for a few bucks. The .xxx names did not do very well and I didn’t like them being there either. My personal opinion is that the addition of all these extensions is ridiculous and fragments the internet. But that is an article for another day.

When I think of a top live auction I think good to great .coms, and great .nets and .orgs. If you want to branch out to another extension or two then only allow the best of the best domains that make sense in that extension. GreatDomains.com had listed last month Cable.TV, Satellite.TV, etc… These names would have made sense to me to be in TRAFFIC.

I also think that a lot of people (and I do it myself sometimes) think their domain names are the greatest thing under the sun and set unrealistic reserves. If you want to move your inventory you set a price that will appeal to people. If you want it to sit there and gather dust you don’t need to list it at TRAFFIC for a high reserve, just keep it on Sedo and let it sit there for years until you find a sucker or until you come to your senses. Or get a broker who will contact the end users that might (and I say might) pay in the range you are looking for.

2 comments on “The TRAFFIC Auction… Hype Does Not Lead to Sales

  • Very well said, particularly regarding the mixing of extensions. It’s strange that the TRAFFIC organizers would opt for a ‘Department Store’ approach, when the world realized 25 years ago that specialty boutiques are the proper way to carve up the marketplace.

    And the wholesale model needs to be put in the ground an covered with dirt. As I stated on my own blog in the Spring (http://domainjd.com/post/3604736007 ):

    “I find it very disturbing to see the continued emphasis on domain ?flipping? (i.e., selling domain names to other domainers). In terms of asset sales, domainers need to focus exclusively on sales to end-users. Reselling their holdings to other domainers continues to (a) pressure sale prices, (b) harm the reputation of the industry, as a whole, and (c) harm newbies, who are generally the purchasers of (frequently) worthless names.”

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