I started following domain drops in 1997.
Back then there was no domain name industry, no trade shows, no blogs, no industry auctions. Very few people knew what a domain was, how to use them, and how valuable they were.
Now 11 years later, with countless articles, press releases, blogs and reports of domain sales, why are so many good domains still dropping?
Here are just some of the names that have dropped and were auctioned off in the past 30 days:
The list of course goes on and on.
Three letter domains.
One word domains.
All dropped by the previous owner.
And it’s not just the big money names.
At publication, NameJet.com has approximately 2,000 domains backordered at a minimum of $69.
SnapNames.com has over 3,000 domains with at least one bid at $59.
Although there are some duplicate domain backordered at both services and even taking into account snapnames.com auctions of domainer owned domains, it still amounts to say 4,000 backordered dropping domains that are worth at least $59 to somebody.
Then there is godaddy which has 1,000 names backordered by at least 2 people (godaddy only shows domains backordered by 2 or more people and there backorders are only for 4 days out)
So why in this day and age with all the publicity that domains have received why are so many people not spending $7 to renew domains that by the thousands, others are willing to spend $59 or more to get?
Is this the true indication that the message of domain valuation that we preach is not making it to main street?
I received an e-mail this week from a domainer to our blog which asked simply:
“””””At what point are these auctions going to attract real end buyers with deep pockets who have a real intent on developing these names?”””
A fair question and one we hear a lot. Why has our message not gotten out to main street and wall street to the point that we still do not get a lot of non-domainers buying at industry auctions.
However, can we really wonder why main street has not come to industry auctions with an open checkbook, when the general public is still letting so may domains go, rather than writing a $7 check to renew their domain?
On the other hand I see a lot of sentiment that the domain industry is in a slump because domains are not selling at the shows in the seven figures.
However can we say the domain industry is in a slump when so many domains are backordered and purchased at 8x the cost (minimum) of a new registration by the tens of thousands each month?
Never mind the “big” price sales.
What is the dollar amount of total domainer purchases each month, though SnapNames, NameJet and GoDaddy’s TDNAM for dropped domains?
I think we would all be surprised at that number.