In this series, we share a conversation we had with a new “namer” on NamePros, who wanted advice on entering the “domain game”. To see the full list of blogs in this series, please click here. The new investor’s name is Muhammad Owais, and his NamePros profile is here. He’s kindly agreed to share the conversation.
In response to my first reply, Onais sent this question:
“Thanks so much for your detailed reply.
I repeated the procedure and amazingly found the exact domain. It was first sold in 2008 on $4000. Now it is in the pending delete auctions on Namejet and after 3 days it will go to the pending delete phase. Till this point there is not a single bid placed on the domain. May be some guys are waiting for the last minute.
Now I can see my choice was not bad. lol. Thanks again for such valuable information.
I have seen some of these sales records and 1 thing I noticed is that between 2009-2012 there are very nice sales. Even some crap names sold for xxxx. Maybe those were domaining top days?”
So things are getting clearer in my mind now. I now understand that a domain sold on 5K a couple of years ago might worth a couple hundred bucks now. We have to keep so many factors in our minds before taking any decision.”
This is my reply:
That is a very good point on the domain sales data at dnpric.es.
Yes, there have been differing market conditions over the short history of the domain business, part of the “New Economy”. Over time of course, these factors change.
The absolute height of the business, was when parking revenue was very high.
So, that would have been when Yun Ye sold his portfolio for a cool $164M, as it turns out – at the top of the market.
At that time, Google had to bid against Yahoo on the parking. Then, later, Yahoo withdrew.
So, the revenue collapsed.
Another market “factor” occurred when EMD domains were doing very well for SEO in Google before the Panda update. So, these domains sold very well at that time.
I can’t pinpoint this exact time – but it’s another factor to take into account when reviewing the domain sales data at dnpric.es or elsewhere.
Another thing to be aware of is error by domain investors. This happens all the time. So, number of sales as opposed to just dollar average, is also a good help.
Despite these intricacies, the data is still useful. For example, the power of EMD domains is far from over.
Let’s take another name I registered before I started using the method in the last post:
This is, at first glance, a potentially nice brandable domain.
Here, we can use the data to good effect.
Checking for sales on dnpric.es gives us the following top sales:
October 2008 $ 97.00 USD SnapNames
February 2016 $ 83.00 USD GoDaddy auction
July 2014 $ 25.00 USD GoDaddy
January 2016 $ 22.00 USD GoDaddy auction
October 2014 $ 18.00 USD GoDaddy
So despite all the twists and turns of the market, we can make a decision on CreditFolks.com. The top sale is $97.
Therefore, what are the odds of selling CreditFolks.com for $x,xxx?
This depends on the attitude to risk of the investor.
Again, we can say it’s unlikely to make a good sale on names ending in “folks.com”.
Having said that, we have the outliers. Folks could be a good “outlier”. I hold a good few of these. Even though the data is against them, I’ll still hold a few.
After all, this is a game, and games have to be fun.
Thanks again for your reply. I would adjust now personally having thought about it, EMD domain sales data from before the Panda update.
On the pending delete and exclusive NameJet names: up until recently, if you bidded on a domain at NJ, you would alert the whole site. Thankfully, NameJet have made it so there has to be several bidders before the auction becomes visible to the rest of the site.
Just think: all your hours pouring over the lists – and now the result of your work is there for all to see. This is a problem for the drop hunter at NameJet.
So, it’s not so bad now on the pending deletes. But on the exclusives: that’s a problem, unless you bid at the absolute last minute. And I mean last minute because you tend to have company. In fact, make that the last five seconds if possible. As you suspected yourself, they are waiting till the last minute.
Protrada.com had a tool which would bid for you on your behalf. It was like $60 a month to get this service. It placed the bid a few minutes before. So you would have company but often you would get it. This service I think is scheduled to resume at some stage.
Ironically, you may be better off waiting until the domain goes into Redemption. But then – you have to get past HugeDomains and all the other drop services. It could be a lot worse then a few bidders at NameJet, plus you have to wait and track – you could miss it. Again, each investor makes they’re own call.
I’d love to hear a response from you. Simply get in touch to share your opinion on this blog. I wish you happy domaining, tech building or backordering!