There is a lot of money that flows into the domain channel, mostly unnoticed.
I’m not talking about the big name, big dollar sales you often read about.
I’m talking about the money spent on the day to day small, unheard of mostly crappy domains, people buy on NameJet.com, SnapNames.com and TDNAM.com.
On NameJet.com you will find somewhere between 150-175 domains backordered every day at $69 per minimum.
With those numbers your looking (using the 150 per day figure) at over $10,000 a day, $300,000 a year and over $3,500,000 a year.
On SnapNames.com there are almost 3,000 domains with at least 1 backorder on it priced between $59-$79.
Using a $70 average this amounts to over $2,100,000 for each cycle. if a cycle is 60 days (I think its shorter) your looking at over $12,000,000 in sales.
Over at TDNAM.com your looking at around 700 domains that sell everyday for a minimum of $10 a domain, leading to $7,000 a day in sales, over $200,000 a month and almost $2,500,000 a year.
Of course MANY of these domain sell for well above the minimum.
And most of these are crap.
Here just a few domains backordered today at NameJet.com:
seekez.com
bank2.com
studieverenigingmercurius.org
all-statersports.com
wwwkisscleveland.com
background-check-guide.com
gzfocus.com
gambling-directory.tv
I could go on.
And on and on.
Take my word for it.
On each of these service your going to find 95% of the domains backordered not Worthy of an $8 registration fee.
I know some of these have back link, spam or other crap traffic, but those days of buying crappy domain that have some traffic for PPC purposes are over as a business model.
Of course many of these domains wind up with multiple bidders and sell for hundreds of dollars.
Back at TDNAM.com there are over 220 domains that already have multiple backorders today and are at auction. Those 220 domain account for almost $22,000 in bids.
Some of these gems include:
weddings-lasvegas.com
ourgames.ws
fatelvis.com
wealthresource.biz
Most of the domains I’m talking about will sell well under $1,000, and you will never hear about them. They won’t appear on Ron Jackson’s Excellent DnJournal.com weekly wrap up or anywhere else.
These domains fly under the radar but add up to tens of millions of dollars in sales each year.
This is not a new development but in this time of changing economic conditions it means, that people are spending tens of millions of dollars, that could be spent to buy good quality domains, to buy crap.
I will be speaking about this and more at DomainFest, next week, on the topic of domaining 2.0-“What does the Next Evolutionary Phases of Our Industry Look Like“
Mike, thank God they are bidding on those names…it keeps them out of my auctions 😛
It is very true many people are buying crap!
Most of them think if snapnames etc have them then there worth that price of at least $59 but instead people should do there homework look at sites where there are other names available for regfee and maybe buy them – I supply list free on my site of available domains they may not all be great but if you see something for reg fee thats better than $60 for a crap name.
Anyway what I meant to say we should only buy names we want to develop or can be turned over quickly for east roi.
Regards,
Robbie
I noticed a surge lately on TDNAM of crappy domain bidding. I asked my GD rep about it and he said that many of the big domain buyers have pulled back, but a fresh new breed of domain investors suddenly appeared in the last two, three months…….so some of this is amateur bidders at work learning the hard way. When asked, he did say that they are bidding them on up to high levels. I expect that some of this poor choice bidding is similar bidders at Snap, Pool, and NameJet.
What really got my attention was domains that were just non-generic, total junk , and had no real back links, etc….. just blind bidding on what would seem valueless domains.
I’ve noticed the same thing, Mike and it’s surprising that domainer bloggers don’t mention this more often.
I have to learn how to use Snapnames/Namejet to sell my reg fee names to these same people for a few hundred apiece! They’re as good if not better than the expired crap I see being fought over.
To counterbalance this, though, I think there are a lot of good expires to be had for $10-79 each day also.
Here’s a few of my most recent hand regs:
Electrohydrodynamics.com (F Schilling owns its sister, magnetohydrodynamics.com)
SummerTuition.com
JobsInSouthKorea.com (today)
Here’s a few of my most recent Snapnames wins for $100 or under:
ThanksForNothing.com
WhereCanIFind.com (for some reason, all the major extensions are taken for this)
BostonRealtors.net (end user potential)
JobsInAfrica.com (earns $1/day on Sedo)
DeathValleyHotels.com
P.S. I expected to get namewatcher.com today for $59 but there are 4 other suckers, er, bidders besides me!
“BostonRealtors.net (end user potential)”
Tony,
FYI Realtor is a registered trademark of the NATIONAL ASSOCIATION OF REALTORS so be careful.
They allow their members to use the mark which is why you often see it.
Patrick,
Thanks for that tidbit!
MB quote –
“I will be speaking about this and more at DomainFest, next week, ”
Considering the downturn in the ppc industry (and at DS) and the projected drop in tradeshow attendance, I thought for sure Domainfest would have been canceled.
I hope you post what you say at DomainFest on your blog.
___2.com domains are valuable to some people. According to DNJournal Big2.com sold for $8100, Picassa2.com for $8K, and I haven’t checked for over a year. We sold Detroit2.com for $6K and currently have a $12K offer for Food2.com. We had agreed to sell it for $12K last year but the buyer flaked out and just showed up again saying they want it. I told them the price is 15 now.
Actually that was Picasa2.com, with one “s,” which someone apparently bought because Picasa2 is the name of a Google photo program. According to the domain’s Sedo page it’s had 11,550 visitors in the last month. I wonder why Google hasn’t UDRP’d it.
Domainer
Domainfest say the registrations are ahead of last year when almost 700 people showed up.
Patrick is right on point about realtor domains
Yep, anything REALTOR is bad news. After reading a lawsuit last year, I dropped a few names like a hot potato.
I’m not too sure about realtor domains. Look at this case that was denied:
http://www.adrforum.com/domains/decisions/137218.htm
Based on the fact that REALTORS became a word and it’s in dictionary.
Disagree: There are no such things as Crappy Domains. Something may look crappy to some people, but that is their opinion. Further: domains have no backlinks, taffic or whatever else. Websites do. Domains not. That a website has little traffic may be important for the owners, or not at all. So, then: What is a tdnam, a msnbc, tucows (two cows), and those thousands of other domains that sold for big money as it is published in online journals and auction webs? There’s no crap. Don’t press down our sales. Our customers pay what they want to get what they want. Please don’t call crap every sale that You don’t understand. Other people’s business is not Your business anyway.
J.R.
There are no crappy domains.
Seriously?
“””domains have no backlinks, taffic or whatever else. Websites do. Domains not””
Your not buying a website your buying domains.
Domains have that have traffic, because they are either good domains with typein’s or have old traffic
based on old links or spam or other crap.
Sorry just remembered there is no crap.
“I’m not too sure about realtor domains. Look at this case that was denied:”
Phil,
i am familiar with that case.
I think the Respondent lucked out.
You cannot be guaranteed of the the same result.
Realtor is still a trademark even if somewhat diluted.
There are many more examples where a Realtor domain was transferred.
Example:
“For all the foregoing reasons, in accordance with paragraphs 4(i) of the Policy and 15 of the Rules, the Panel orders that the domain name be transferred to the Complainant.”
http://snurl.com/realterorg
“it is Ordered that the domain name be TRANSFERRED from Respondent to Complainant.”
http://snurl.com/RealtorBiz
erealtor.com and e-realtor.com were ordered to be terminated.
http://snurl.com/erealtor
Case # D2000-0705
I was just warning him to be careful. That’s all.