Comments on: The Problem With Domain Auctions http://www.elliotsblog.com/the-problem-with-domain-auctions Domain blog featuring domain investing strategy, domain valuation, and domain development commentary from Elliot Silver, founder of Top Notch Domains, LLC. Thu, 09 Feb 2012 21:08:42 +0000 hourly 1 By: Mark http://www.elliotsblog.com/the-problem-with-domain-auctions#comment-18244 Mark Tue, 02 Feb 2010 11:36:05 +0000 http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-18244 Elliott suggestion - why not do an update on your fine 2007 post The Problem with Domain auctions. In the 2-3 years that have passed the industry hasn't ironed out many / any of the problems you mentioned. For a seller, the auction houses do absolutely nothing effective to interest potential end user interest. It's just domainer money going round and round. There is a massive opportunity for an auction house / broker to become good at targeting domains at end users and creating a multiple bidder auction as a result. It's incredible that with all those smart entrepreneurial people out there no-one has been able to make this work. It's also incredible the patchy and unreliable "statistics" that are fed to potential buyers have not been improved. Elliott

suggestion – why not do an update on your fine 2007 post The Problem with Domain auctions.

In the 2-3 years that have passed the industry hasn’t ironed out many / any of the problems you mentioned.

For a seller, the auction houses do absolutely nothing effective to interest potential end user interest. It’s just domainer money going round and round.

There is a massive opportunity for an auction house / broker to become good at targeting domains at end users and creating a multiple bidder auction as a result.

It’s incredible that with all those smart entrepreneurial people out there no-one has been able to make this work.

It’s also incredible the patchy and unreliable “statistics” that are fed to potential buyers have not been improved.

]]> By: Mike O'Connor http://www.elliotsblog.com/the-problem-with-domain-auctions#comment-1369 Mike O'Connor Sun, 23 Dec 2007 05:22:42 +0000 http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1369 I'm with Adam and Elliot on this one. But here's my twist. I think the emergence of auctions is great -- they're just not fully-evolved yet. My guess is that 2008 (or 2009 at the latest) will see one or more of the auction-houses moving towards a Sothebys-style arrangement where they make sure that there are several qualified bidders for a premium domain in the audience *before* they allow the domain to go on auction. At that moment, I want them to be able to command great commissions. In fact, I would propose the following enhancement to commission structures. Start with a non-refundable base fee that's paid by the seller (sorts the wheat from the chaff and cashflows up-front marketing costs). Make that fee apply against commission. Lay on that a 1st-tier commission (10-15%) if the domain sells between the reserve price and some multiple (maybe 1.5x reserve for sake of argument). But then have the commission go *up* if the domain sells for more than that -- maybe to 20%. Now we've got incentives for the auction-house to get the right people in the room, and drive for higher prices. My hope is that somebody does something like this next year, or the year after at the latest. I’m with Adam and Elliot on this one. But here’s my twist.

I think the emergence of auctions is great — they’re just not fully-evolved yet. My guess is that 2008 (or 2009 at the latest) will see one or more of the auction-houses moving towards a Sothebys-style arrangement where they make sure that there are several qualified bidders for a premium domain in the audience *before* they allow the domain to go on auction.

At that moment, I want them to be able to command great commissions. In fact, I would propose the following enhancement to commission structures. Start with a non-refundable base fee that’s paid by the seller (sorts the wheat from the chaff and cashflows up-front marketing costs). Make that fee apply against commission. Lay on that a 1st-tier commission (10-15%) if the domain sells between the reserve price and some multiple (maybe 1.5x reserve for sake of argument). But then have the commission go *up* if the domain sells for more than that — maybe to 20%.

Now we’ve got incentives for the auction-house to get the right people in the room, and drive for higher prices.

My hope is that somebody does something like this next year, or the year after at the latest.

]]> By: 2w http://www.elliotsblog.com/the-problem-with-domain-auctions#comment-1292 2w Tue, 18 Dec 2007 23:12:40 +0000 http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1292 >> ***UPDATED BT ELLIOT*** >> Unless one of the major auctioneers gives people >> a compelling reason to pay a large commission >> (like bringing the buyers), >> there is going to be a problem >> as the market seems to be saturated. we have been prepared well to pay well over 20.00 % e.t.c. to any auction's house who could prove themselves out that they could really bring in more buyers e.t.c. we have been prepared well to pay well over 20.00 % e.t.c. to Moniker , should they remove the requirement to pay some fees to bid cheers please ThANKye 2w >> ***UPDATED BT ELLIOT***
>> Unless one of the major auctioneers gives people
>> a compelling reason to pay a large commission
>> (like bringing the buyers),
>> there is going to be a problem
>> as the market seems to be saturated.

we have been prepared well to pay well over 20.00 % e.t.c.
to any auction’s house
who could prove themselves out
that
they could really bring in more buyers e.t.c.

we have been prepared well to pay well over 20.00 % e.t.c.
to Moniker ,
should they remove the requirement to pay some fees to bid

cheers please ThANKye 2w

]]> By: 2w http://www.elliotsblog.com/the-problem-with-domain-auctions#comment-1291 2w Tue, 18 Dec 2007 23:06:10 +0000 http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1291 an other question : ::::: i'm still scratching my heads over why why up2now AfterNic//BuyDomains still not make their auction live online+offline , as those of DomainTools or DomainFest e.t.c. please ask them directly , i have asked , but , up2now , no answer ThANKye 2w an other question : :::::
i’m still scratching my heads over
why
why up2now AfterNic//BuyDomains still not make their auction
live online+offline ,
as those of DomainTools or DomainFest e.t.c.

please ask them directly , i have asked ,
but , up2now , no answer

ThANKye 2w

]]> By: 2w http://www.elliotsblog.com/the-problem-with-domain-auctions#comment-1290 2w Tue, 18 Dec 2007 22:58:00 +0000 http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1290 1 of 'the problems is that : ::::: even up2now , there's still not enough competitions among houses of auctions , 1 proof : : for Moniker-held auctions , you must register in advance and pay a fee to bid. there's also fee for the absentee's bidding http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1182 >> Kelly Lieberman Says: >> December 15th, 2007 at 8:18 pm [[.....]] >> In some cases, >> you must register in advance and pay a fee to bid. >> This possibly shuts out potential buyers >> who hear about it late or change their mind >> and decide last minute to participate. please , please ask My Dear Sir Monte Cahn e.t.c. to remove 'these kinds of fees please cheers ThANKye 2w 1 of ‘the problems is that : :::::
even up2now ,
there’s still
not enough competitions among houses of auctions ,
1 proof : :
for Moniker-held auctions ,
you must register in advance and pay a fee to bid.
there’s also fee for the absentee’s bidding
http://www.elliotsblog.com/index.php/2007/12/15/the-problem-with-domain-auctions/#comment-1182
>> Kelly Lieberman Says:
>> December 15th, 2007 at 8:18 pm
[[.....]]
>> In some cases,
>> you must register in advance and pay a fee to bid.
>> This possibly shuts out potential buyers
>> who hear about it late or change their mind
>> and decide last minute to participate.

please ,
please ask My Dear Sir Monte Cahn e.t.c. to remove ‘these kinds of fees

please cheers ThANKye 2w

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