Alex Tajirian,a contributing writer to CircleId has written a post calling for the end of all domain auction sites and replacing them with a centralized clearing house for all expired or dropping domains.
Simply Mr. Tajirian thinks the “Speculators” (that is you he is talking about) are getting too many of the good dropping domain names and businesses, SEO guys and end users can’t get them.
Who is Alex Tajirian you ask?
According to his Bio, he “launched the first domain-name secondary market in 1996.”
“He pioneered the development of a number of domain-name valuation models and estimation procedures using regression trees and has written extensively on domain-name acquisition and negotiation strategies, advertising and marketing, cybersquatting solutions, direct navigation, market structure, monetization, investment, and protection.”.
Mr. Tajirian writes:
“””We need to throw away the jumble of different auctions and dealer sites.”
“Speculators may not like having their haunts cleaned out, but corporate (end-user) buyers and investors will welcome the chance to deal with one centralized auction mechanism with one set of rules.””
“”Right now end-users wanting to buy domain names have no idea of what listing and bidding procedures they’ll find when they show up at a domain-name auction site. The sites don’t even use the same terminology.””
“”Instead we have a market dominated by speculators, fast operators who buy only so they can “flip”—that is, turn around and sell the name for a quick profit.”
“Thus, there is a need for the industry to move to a major centralized auction. Doing so will benefit society, end-users, investors, dealers, and consultants”
“Moreover, the industry can impose a speculation tax to deter such activity with secondary markets in IDNs and new TLDs. (A speculation tax was first proposed by James Tobin, a Nobel laureate economist, and is picking up steam among government officials in Britain).”
“A centralized auction mechanism could also be devised for expired-name auctions. ”
Now as far as I know there are four separate expired domain name drops a day.
Some registrars such as Networksolutions.com and Enom.com drop their expired domains exclusively to NameJet.com.
Another group of registrars drop their domains exclusively to SnapNames.com and then all other registrars just drop their expired domains freely where they can be backordered also on Snapnames.com or NameJet.com.
So if you want to participate in the drops, you really have just 3 auction systems to deal with.
Mr. Tajirian arguments against the current system include:
“”Right now end-users wanting to buy domain names have no idea of what listing and bidding procedures they’ll find when they show up at a domain-name auction site.”
Mr. Tahirian your argument doesn’t hold water.
Each of these 3 sites have their terms and conditions clearly posted on their site.
Each of the 3 sites have a FAQ section and each have a customer support line where you can call, talk to a live person and ask questions.
Each of these sites makes it pretty clear how you can join an auction.
Each of these sites have a list of domains that will be dropping each day.
Each of the auctions have an easy way to search for the domains with the most backorders or bidders so anyone can quickly see which are arguably the best domains dropping. (NameJet.com lists them on the front of their site).
The auctions are opened to anyone.
Anyone can get an account.
Corporations, SEO guys, end users, everyone including “speculators” can participate in the drop auctions.
Put a tax on Speculators?
Who he calls “fast operators who buy only so they can “flip”—that is, turn around and sell the name for a quick profit.”
How about people like myself that buy domains to hold as long term investments.?
We have owned domains for over 10 years.
We have been in the business for over 10 years and have NEVER “flipped” a domain for a quick profit.
We only sell 200 or so domains a year out of 75,000 not exactley how you describe “Speculators” is it?
Couldn’t you describe the financial and stock markets the same way?
Speculators, in that case, are the stock traders who buy stocks, calls, puts, bonds and commodities in hopes of selling them at a profit one day.
Some people are look to hold positions for just minutes or hours, hoping to sell shares at a profit, they are called day traders.
Is there a tax on stock traders?
Is there a tax on day traders?
It makes no sense.
By the way not even investment leads to a profit, yes when you invest in anything be it stocks or domains you can lose money as well.
Finally I have a little secret for you Mr. Tajirian, there are plenty of end users, corporations, SEO guys participating in the drop auctions.
Yes they took the time to learn the rules.
They took the time to learn the “terminology” of the auctions.
They took the time to go through the drop lists to find domains they were interested in, took the time to get their backorders in and participate in the auctions and guess what?
A lot of these auctions are being won by end users, SEO guys and corporations, not just those nasty speculators.
A centralized drop auction center, sure there are some valid arguments to be made in favor of it, but you have not made any of them.
If you want the good domains your going to have to put in the time, do the work and put out the cash.
The market is open to you as well.