Comments on: Auction.com Rings Up $32 Million In Sales http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/ Tue, 16 Mar 2010 09:18:17 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Great Domain Story - DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18639 Great Domain Story - DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars Fri, 28 Aug 2009 15:29:15 +0000 http://www.thedomains.com/?p=5162#comment-18639 [...] 40 states. Makes that $1.7 million paid for the domain looks pretty cheap, doesn’t it?" http://www.thedomains.com/2009/08/27...lion-in-sales/ __________________ [...] [...] 40 states. Makes that $1.7 million paid for the domain looks pretty cheap, doesn’t it?" http://www.thedomains.com/2009/08/27…lion-in-sales/ __________________ [...]

]]> By: Famous Quotes in Domaining - Page 9 - DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18628 Famous Quotes in Domaining - Page 9 - DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars Fri, 28 Aug 2009 10:25:02 +0000 http://www.thedomains.com/?p=5162#comment-18628 [...] our most aggressive foray into auctions on a national level, and it was a tremendous success" -- Auction.com CEO Jeff Frieden __________________ ` "You are what you [...] [...] our most aggressive foray into auctions on a national level, and it was a tremendous success” — Auction.com CEO Jeff Frieden __________________ ` "You are what you [...]

]]> By: Sch http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18625 Sch Fri, 28 Aug 2009 07:24:05 +0000 http://www.thedomains.com/?p=5162#comment-18625 [...] than 40 states. Makes that $1.7 million paid for the domain looks pretty cheap, doesn [...] than 40 states. Makes that $1.7 million paid for the domain looks pretty cheap, doesn

]]> By: Dan Bell http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18618 Dan Bell Fri, 28 Aug 2009 04:45:38 +0000 http://www.thedomains.com/?p=5162#comment-18618 We are not privy to all the facts but you have to consider all the variables. $31.7 Million in sales in less than a month is a hefty number which is probably fueled by the increase of foreclosures, what would be interesting to see if they can sustain those numbers when foreclosures are reduced. Sure the name had something to do with it, but I don't think it was the main reason, it's the basic supply and demand rule. At this rate though it shouldn't take long to recoup the cost of domain. It sounds like they exceeded their sales quotas which may have caused their lack of customer service, keeping a balance is a challenge. I agree, at face value the $1.7 million paid is cheap for Auction.com, making it work is another subject, but right now it's working. Congrats Mike on your well deserved nominations! We are not privy to all the facts but you have to consider all the variables. $31.7 Million in sales in less than a month is a hefty number which is probably fueled by the increase of foreclosures, what would be interesting to see if they can sustain those numbers when foreclosures are reduced. Sure the name had something to do with it, but I don’t think it was the main reason, it’s the basic supply and demand rule. At this rate though it shouldn’t take long to recoup the cost of domain. It sounds like they exceeded their sales quotas which may have caused their lack of customer service, keeping a balance is a challenge.

I agree, at face value the $1.7 million paid is cheap for Auction.com, making it work is another subject, but right now it’s working.

Congrats Mike on your well deserved nominations!

]]> By: Alan http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18617 Alan Fri, 28 Aug 2009 04:43:44 +0000 http://www.thedomains.com/?p=5162#comment-18617 David, Well said. "Never underestimate the psychological power a category killer like Auction.com" to All Why is it everytime a category killer name sells people jump on the bandwagon to say it cant be worth that for sure. Auction.com is worth 2 million or 20 million - because the end user who paid for it knew what it was worth to their business plan. Hell, it could be $100 million - doesnt matter. They paid what the name was worth. My guess is that 90% of domain sales are between domain investors / small developers 10% to corporate end users the % that gets sold to end users CAN NOT be used as comparison. Sure, it can help build a floor to ensure the end user a six figure is reasonable on market sales but thats it. Each domain is unique Every business plan is different Every lead generation company has different revenue shares, revenue models - Every end user only cares what the name is worth to them End users dont give a shit about industry sales An End user pays $3 million for a domain (like Candy.com) its great for the industry to gain more attention and possibly more investors. more investors = more interest = more bidding = more value. As domainers we benefit from these million dollar sales in only ONE WAY, by bringing more people and more money into the industry. Dont think for a moment any end user gives a crap what candy.com sold for - they only care what the name is worth to them. Branding - you need to sell this aspect Comparing other domain sales is like comparing a million dollar home in Beverly Hills to a million dollar home in Green Bay. Hey - its $1m sale so lets compare these 2 and I''ll tell you why its worth just as much. Sure - $1m will buy you a crackhouse or a luxury estate in this case. Its not the same. You need to sell end users by comparing the cost of a domain to guess what - TRADITIONAL MEDIA COST, the long term value of any type in traffic and the intangible value by automatically becoming a leading brand (such as Whisky.com or PalmSprings.com) This comment is too long already but the point is ANY sale of a domain for a million dollars or more is a deal. The seller was happy to sell and the buyer was happy to pay. When both parties are happy then nothing was overvalued. David,

Well said. “Never underestimate the psychological power a category killer like Auction.com”

to All

Why is it everytime a category killer name sells people jump on the bandwagon to say it cant be worth that for sure. Auction.com is worth 2 million or 20 million – because the end user who paid for it knew what it was worth to their business plan. Hell, it could be $100 million – doesnt matter. They paid what the name was worth.

My guess is that

90% of domain sales are between domain investors / small developers
10% to corporate end users

the % that gets sold to end users CAN NOT be used as comparison. Sure, it can help build a floor to ensure the end user a six figure is reasonable on market sales but thats it.

Each domain is unique
Every business plan is different
Every lead generation company has different revenue shares, revenue models – Every end user only cares what the name is worth to them
End users dont give a shit about industry sales

An End user pays $3 million for a domain (like Candy.com) its great for the industry to gain more attention and possibly more investors.

more investors = more interest = more bidding = more value.

As domainers we benefit from these million dollar sales in only ONE WAY, by bringing more people and more money into the industry.

Dont think for a moment any end user gives a crap what candy.com sold for – they only care what the name is worth to them.

Branding – you need to sell this aspect

Comparing other domain sales is like comparing a million dollar home in Beverly Hills to a million dollar home in Green Bay. Hey – its $1m sale so lets compare these 2 and I”ll tell you why its worth just as much.

Sure – $1m will buy you a crackhouse or a luxury estate in this case.

Its not the same.

You need to sell end users by comparing the cost of a domain to guess what – TRADITIONAL MEDIA COST, the long term value of any type in traffic and the intangible value by automatically becoming a leading brand (such as Whisky.com or PalmSprings.com)

This comment is too long already but the point is ANY sale of a domain for a million dollars or more is a deal.

The seller was happy to sell and the buyer was happy to pay.

When both parties are happy then nothing was overvalued.

]]> By: Chris Beach http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18616 Chris Beach Fri, 28 Aug 2009 04:09:55 +0000 http://www.thedomains.com/?p=5162#comment-18616 The domain appears to get around 500,000 uniques per month, so that must have some positive effect on their business. They charge a buyer's premium of 5%, which amounts to $1,585,000 in the four months they've been operating with Auction.com and that doesn't include commission (usually 5-10%??) on the seller's side. The domain appears to get around 500,000 uniques per month, so that must have some positive effect on their business. They charge a buyer’s premium of 5%, which amounts to $1,585,000 in the four months they’ve been operating with Auction.com and that doesn’t include commission (usually 5-10%??) on the seller’s side.

]]> By: Ben Wilks http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18615 Ben Wilks Fri, 28 Aug 2009 03:35:53 +0000 http://www.thedomains.com/?p=5162#comment-18615 Interesting comments here. I'm sure they would have netted the same amount without Auction.com right? (doubt that somehow) The advertising to get those sales would have been cheap? (yeah right) Flow on effect from the PR? (as if) Reporting that this auction.com really works? (umm, ok) There are many more facets to value here, short of mentioning resale value in 5 years. Wake up while you still can. Interesting comments here.

I’m sure they would have netted the same amount without Auction.com right? (doubt that somehow) The advertising to get those sales would have been cheap? (yeah right) Flow on effect from the PR? (as if) Reporting that this auction.com really works? (umm, ok)

There are many more facets to value here, short of mentioning resale value in 5 years.

Wake up while you still can.

]]> By: Rick http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18614 Rick Fri, 28 Aug 2009 02:48:27 +0000 http://www.thedomains.com/?p=5162#comment-18614 That doesn't mean they made $32 Million. That money goes to the owner of the houses. At most they would most likely made much less than 1% so that expensive domain still has not paid for itself. That doesn’t mean they made $32 Million. That money goes to the owner of the houses. At most they would most likely made much less than 1% so that expensive domain still has not paid for itself.

]]> By: David J Castello http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18613 David J Castello Fri, 28 Aug 2009 02:27:07 +0000 http://www.thedomains.com/?p=5162#comment-18613 Troy: 100% agree. Pets.com (and their dopey sock puppet) still haunts the domain industry to this day and no name can help a bad business model. On the other hand, there were far greater debacles than Pets.com, but most people remember the Pets.com disaster because their name was so memorable! Troy:
100% agree. Pets.com (and their dopey sock puppet) still haunts the domain industry to this day and no name can help a bad business model. On the other hand, there were far greater debacles than Pets.com, but most people remember the Pets.com disaster because their name was so memorable!

]]> By: Troy http://www.thedomains.com/2009/08/27/auctioncom-rings-up-32-million-in-sales/comment-page-1/#comment-18611 Troy Fri, 28 Aug 2009 01:58:08 +0000 http://www.thedomains.com/?p=5162#comment-18611 I agree with most of the comments. This does not mean the domain made the money for them, also, 31.7 million in sales hardly means that they made 31.7 million in profits. While cat. killer domains are an awsome commodity I feel that it is importiant that we don't promote them as more tahn they are. The bottom line is that Auction.com needs a sound business behind it to really be successful. Business people allways say how the domains don't matter, but is the business behind it. Domainers wont stop saying that it is the domain that makes a business successful, the truth of the matter is that both are right. Domains help a ton, but in the end Pets.com can't make a profit with a crappy business model, just like Auction.com wont make a profit with a crappy business model. I agree with most of the comments. This does not mean the domain made the money for them, also, 31.7 million in sales hardly means that they made 31.7 million in profits.

While cat. killer domains are an awsome commodity I feel that it is importiant that we don’t promote them as more tahn they are. The bottom line is that Auction.com needs a sound business behind it to really be successful.

Business people allways say how the domains don’t matter, but is the business behind it. Domainers wont stop saying that it is the domain that makes a business successful, the truth of the matter is that both are right. Domains help a ton, but in the end Pets.com can’t make a profit with a crappy business model, just like Auction.com wont make a profit with a crappy business model.

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