Why sales were low and what it says about the current state of domain name auctions.
Moniker’s live auctions (low & no reserve and premium) last week sold just over $400,000 of domain names. The top seller was Won.com at $115,000.
This is obviously a low number. I have two observations from the results:
1. A lot of these domains would have sold for much more back in 2007. Check these out:
All three of these would have sold for a few times more back in that fateful 2007 NYC auction.
But alas, it’s now 2011.
2. High prices = few bidders = marketing event
There were some good domains in this auction, but none of the biggies looked like deals. I didn’t see a single one that I thought would prompt a bidding war.
During a breakfast with the media on Wednesday, Oversee.net CEO Jeff Kupietzky said that auctions are becoming more like marketing events. They get exposure for big names that then sell after the auction.
For the auction house this is fine, but it’s a self-perpetuating cycle. If you’re interested in a domain name it doesn’t make sense to bid for it at the auction unless someone else is also bidding. You’re better off waiting until after the auction to negotiate a better deal. Unless you have to have the domain name — in which case you should buy it ahead of time.
The extended silent auction runs through February 17.