So as we all know by now Toys.com, which sold literally just days ago, for $1,250,000 as part of a bankruptcy court proceeding, sold today for $5,100,000 after a re-auction was ordered by the bankruptcy court.
What does that say about the value of domains or domain auctions?
How does a domain at auction sell one week for $1.25 million and the next week for over $5 Million.
The first auction only a few people knew about or participated in, causing the end price to be below market value.
The re-auction had other participants who did not have knowledge of the first auction, like National A-1 and Toys R Us.
I love Rick
But I think as this auction demonstrated, he might have over thought it.
After the toys.com auction, something should become clear.
Domain values and auction selling prices depend on how well publicized the auction is, who is involved in the auction, and how desirable the domain is.
The venue, the auctioneer, how much food is served, how many people attend, none of it matters.
If you have the right domain and the right bidders you will have a sale.
If you have bidders but not the “right” bidders you will have a sale, but the sale will be at a fraction of the price it could be if you had the “right” bidders.
The auction houses need to concentrate on only two things.
1. Good domains.
2. Making the “right” buyers aware of the auction.
Publicizing the domain auction to the “right” buyer makes all the difference.
In this case its was a $4 Million dollar difference.