I was watching the auction for wwwPokerStars.net.? This is a typo domain for the popular poker site PokerStars.net.? The typo (in case you missed it) is there is no dot between the ‘www’ and the ‘pokerstars’.? Was this a wise investment for the winner and can/should they lose this domain?? Let me give you the rundown…
Pokerstars.net is a legal poker site because no real money is played through this site.? Pokerstars.com is a gambling site where real money changes hands.? Because of this, whenever you watch a poker tournament on television you will see all the promotion is done for PokerStars.net.? This is their legal loophole of how they can legally advertise on television.? This also drives a lot of brand recognition and type-ins to the PokerStars.net website.? According to Alexa.com, Pokerstars.net is the 18,147 most popular website in the world and the 14,896 most popular website in the United States.? Point being it drives good traffic.
Godaddy was auctioning off this domain as an expired domain auction.? According to their stat sheet this domain receives about 445 visitors a month.? We can assume those are all typos.? I was going to bid on this domain.? With 5 minutes to go the price sat at $1,005 but then a few players jumped in and bid it up out of the range I was willing to pay. The final price was $8,500.? Pretty amazing for this domain name until you consider how it would be used.
Why were people willing to pay this much for the domain?? If you become a PokerStars affiliate you can earn $75 per signup that you generate.? There are tiered levels, so if you sign up a certain number of people in a month that jumps to $100 per person, and it maxes out at $125 per person.? There can be some big money there.? I am pretty sure whoever wins this domain will simply redirect people to the Pokerstars site through their affiliate link.
So let me quickly theoretically crunch the numbers.? Assume the 445 hits per month is accurate.? These are highly targeted hits so I will say a conversion rate that will create an account and deposit money would be around 5%.? That is about 22 conversions a month.? I believe this falls into the tier that pays $100/conversion, so monthly revenue would be $2,200.? If it converts at a 10% clip that is 44 conversions which would be the $125/conversion tier which would be $5,500 per month.? Assuming this is a somewhat accurate the buyer got a steal.? My only fear here and why I didn’t want to bid so much is because if PokerStars figures out what you are doing they will ban your affiliate account and then probably file a claim to get the domain name in which case you may be out thousands of dollars.
So what do you think?? Wise investment?? Risk vs reward ratio makes sense?? Anything morally or ethically wrong with this strategy (earning the affiliate commission but not really driving affiliates themselves)?? Your thoughts????
As I was watching this auction one of my pet peeves arose and it really annoys me…? if you are bidding in an auction, and you know that near the end if you place a bid it will cause the auction to get extended why do people wait until under a minute to submit a bid?? This isn’t Ebay people, and you aren’t sniping an auction.? Then the auction time resets to 5 or 10 minutes.? It starts to count down again .? And sure enough under a minute is left when someone decides to bid again, thus resetting the countdown to another 5 or 10 minutes.? This really chaps my ass to say the least.? They are wasting everyone’s time, and for the life of me I don’t see any strategical concept here.? This auction for wwwPokerStars.net literally lasted an extra 55 minutes then when the auction was supposed to close, and it lasted this long because whoever was bidding would wait until the final minute of the extended period to bid.
And in other less dramatic and interesting news I won the domain ConflictDiamond.com in an expired domain auction for $84.? Score one for the home team, lol.