I read earlier today on NamePros.com a number of valuations for GOLDAUCTION.COM, anything from US $400 to US $4,500.
I also read earlier today on DomainState a comment which got my attention about RYY.COM, yesterday’s auction. The comment was put by Domainstate’s member Snoopy:
Would say it was about 10-15% under market value. Considering the liquidity of these names it is a very poor result.
(comment in regard to RYY.COM sale price of US $7,124.00)
Obviously the domain was sold for the EXACT market value for the time of listing as the domain started with US 1$ and no reserve. So why did it perform less than expectations? It is because market value changes constantly. Markets are dynamic, not static.
Understanding that markets constantly are changing, what would the market value for GoldAuction.Com be today? And will the price be in relation to the gold market? If the gold market is any sort of indication it should sell for a high price however, Bido is quite new and does not yet have the exposure it will have at a later point. Prices therefore may be in accordance with the domain industry (Domainers), not to the gold industry.
With that said, I think it will be interesting to watch. Someone will probably get a steal!
Wishing good luck to all bidders!
Sahar
Edit: Closing price US $1,284.00
Great article Sahar.
Keep up the GREAT work.
You are an INSPIRATION
—-anwer—
Thanks Damir!
Sahar
“Obviously the domain was sold for the EXACT market value for the time of listing as the domain started with US 1$ and no reserve. So why did it perform less than expectations? It is because market value changes constantly. Markets are dynamic, not static.”
I agree in principle, however market value is determined by market place. For example, If Bido hired Owen Frager to increase exposure of the auction to end users perhaps the market value would change significantly.
I keep wondering why Moniker or some of the other auction companies don’t hire him or some other genius to bump start this aftermarket. I wonder if he could be hired on a percentage basis? He certainly would be well worth it….
Sahar, I can’t quite agree with that statement, either. Bido.com does not represent the entire market, so a sale price achieved on Bido.com doesn’t necessarily make the winning bid the domain’s fair market value.
Moniker has used the same argument after past auctions or when talking domain sellers into listing their domains at lower reserve prices, but it just doesn’t convince me.
Aside from that, you know that I’m enthusiastic about Bido and I believe we will see some nice sales through your platform!
—-answer—-
Hi Dominik,
Moniker is right asking for lesser reserves from sellers as higher ones just waste time for everyone with high bids and reserves that are not met. The domain industry is extremely small, especially if you count the active domain professionals in our industry. Bido, while an extremely young company, has a massive reach in that industry, and Moniker, with their years of experience, even more. Both Moniker and Bido auctions are a great reflection of what the market value is for domains. Of course, we would all want to believe all our domains are much more valuable than what they are but at times, when we want or need to sell, and I know it is hard to do and definitely not fun, we have to face reality, learn that while we have one set of ideas for value, the market has another.
Thanks for all the support Dominik, always much appreciated!
Sahar
The market is where and when the market is. If you’d have put the RYY domain and a 2.5 ton Rockwell axle for sale over on my Monster Truck Trading Center at the same time the Rockwell Axle would have bought in the higher offer. The axle market is there, the domain market isn’t.
The domain market is pretty much ignorant of the Monster Truck Trading Center. If the domain markets attention is on something else at the time or ignorant of what’s happening at Bido, the market will sag at Bido. You must get the word out.
But market sags have a habit of correcting themselves, too. Word gets out that there’s been several good domains sold at Bido for reasonable prices, the buyers will come looking and prop the market up at Bido with their dollars.
Several years ago that Rockwell Axle I mentioned earlier might have sat around at the Trading Center for months. Word got out that axles where there and going low. Now they move much quicker.
—-answer—-
100% in agreement, exposure is key. As a sales operation (RMG) we know this field quite well and when the time comes, when we are ready for massive exposure outside of the domain channel, we will get it. In the meanwhile, for the most part, our target audience is the domain channel where we do have such exposure.
Cheers
Sahar