It’s always interesting to see how a non-domainer views of a category killer domain in their industry.
The self entitled Broadway Blog, had less than kind thoughts about one of the domains up for sale at the RickLatona.com TRAFFIC auction, BroadwayShows.com.
Considering the blog describes itself as writing about: “Broadway news and gossip about all the Broadway Shows currently appearing on Broadway“, it seems strange it wouldn’t like the domain broadwayshows.com.
Well actually its not that the author doesn’t like the domain, its just that the author doesn’t like the asking price of $800,000.
“This domain name has so much promise, but with a reserve price of $800,000, its unclear who would want it.”
“Even for that price the domain comes with no brand established and no content has been put on the site, so it is backlink anorexic that has no intrinsic value””
“The cynic in me says that this domain name auction is nothing more than a lazy way of promoting the URL without actually developing anything useful. It may increase its awareness, domain speculation is so 2001.”
“The current domain owners should be careful because if the eminent domain law ever gets passed they would lose the URL in one second flat – its like the proverbial empty house right in the middle of the path of the road construction.”
The author then goes through each category of potential buyers for the domain and concludes that none of them would buy the domain for anything more than “possibly 1/20 of the asking price”.
Guess the author missed that news that the domain Ticket.com sold last week for $1,525,000.
A million and a half dollars for a domain name?
That’s so 2009.
For someone not in the domain industry that blog post shows alot of insight in regards to the likely buyer and the chance of it selling.
I really cannot see this getting a bid at the auction. It is worth more than 1/20 of the auction price, but it is still overpriced none the less. Personally I think with a low reserve this could go up to around 300k, but 800k as a minimum bid, I can’t see it happening.
The owner has listed it for sale so many times now and they could well have got close to 800k a couple of years ago when domain and traffic values were double what they are today.
If it was Broadway.com I think it would be worth $800,000, but BroadwayShows.com I think is a $200,000 domain.
I agree $800,000 is a dream price. Brazil.com sold for $500,000 and they want $800,000 ? $100,000 name, maybe $200,000 for someone in the business. Again IMO
“For someone not in the domain industry that blog post shows alot of insight in regards to the likely buyer and the chance of it selling.”
I agree with Snoopy that the author had alot of insight about the potential for the domain. But, I disagree that this person is not knowledgeable about the domain industry.
He knows too much for an outsider.
But Michael, as a lawyer you should question the authors intentions.
The site’s primary business is selling tickets for NY shows. They surely don’t want a major company to scoop it up and develop it into a complete distination site.
You never know. Maybe, IAC would want to develop it?
The information and analysis is good. I just question the author’s intentions.
I wish the seller good luck. I hope he sells it.
(I don’t know who is the seller since it is in privacy.)
Domain
It’s an interesting post, which is why I wrote about it.
I obviously don’t agree with the guy that domain names have “no intrinsic value
and that he thinks that this domain is worth only $40K.
But your right, he may have a personal motivation to see this domain not acquired and built out
Frankly, its an embarrassement for Rick Latona and his brand. An auctioneer shouldn’t accept a product that is so overpriced, that the only hope the owner can get is free publicity. I always though Rick’s auctions were a cut above the rest because of the reasonable reserves he employed in the past… The reserve on this at best should be 30-40k, and the owner should be high fiving Rick if he got a bid.
This is just one more reason why SEDO has blown past the others time after time. I just feel like they are the Goldman Sachs of our industry because they seem to get “it.” They don’t need clients like this.
“Even for that price the domain comes with no brand established and no content has been put on the site, so it is backlink anorexic that has no intrinsic value.”
Really, Professor? Nice try 🙂
No way is BroadwayShows.com worth more than Shows.com or Broadway.com. Shows.com sold for $105K this year which in retrospect was a STEAL. Looking at search stats and CPC, I’d say $100K would be a fair price for BroadwayShows.com. That, to me, means Shows.com is worth $1+M at the least.
I officially am flipflopping my vote from AreaRugs.com to Shows.com as the best mid-xxxK deal of the year so far.
🙂
Please do not compare broadway.com to broadwayshows.com, that´s a huge difference between them. The show biz is one of the most affected sectors by these times and so it is no wonder why it didn´t sell for the asked price, too high level imo. Maybe 100k does well but not more.
Regards
Tony,
If you owned the domain, would you sell it for $ 100K ??
I doubt it.
If Rick Schwartz owned the domain, what do you think he would get for it?
Ditto MHB and Castello’s comments above. The insinuation “has no intrinsic value” discredits & nullifies everything the critic said.
In fact, he likely wants the domain … but cannot afford it. Yes, the price may be too high for the current market. But trying to convince others it has no intrinsic value is a truly moronic statement.
I might add that while Broadway.com would be ultimate … it is developed, unavailable & out of reach (unless you’re extremely wealthy). Consequently, BroadwayShows.com is a very close second and arguably provides a desired specificity. So the owner is in the driver’s seat … and likely knows it. If he’s not in a hurry to sell, then it makes no sense to underprice the domain. This lesson trumps all other considerations (assuming under no pressure to sell).
Put another way, if the price for Broadway.com is $8 million, then BroadwayShows.com at 800k looks really, really good.
Domain,
I’d take $100K for BroadwayShows.com.
I’m not Rick Schwartz and don’t have his leverage.
I’d take the $100K because I believe I can get a better domain.
Agree Tony, Maybe someone should look at the financial crisis Broadway is in, Just about anyone would take $100,000. The name is nowhere close to Brazil.com not in the same universe and in these economic times it got $500,000.
Factor in too that many financially comfortable folks weren’t affected by the recession. So they buy if they want to buy.
I assume most readers here would agree that the U.S. economy will re-establish itself and that the next wave of economic activity will resume. Look at how sales have continued almost regardless of the “recession”. Once general business resets & restarts, there will be a notable increase in internet/domain related projects & expenditures.
The major drag on future growth will be lack of jobs and the ongoing welfare costs enacted and multiplied en masse … payed for by American business. The crankstart for fixing this is legislation which passes domestic oil drilling & Energy Alternatives. If the administration will do this (stop dawdling Obama!), watch the economy spring forward. Mark those words.
“No way is BroadwayShows.com worth more than Shows.com or Broadway.com. Shows.com sold for $105K this year which in retrospect was a STEAL. Looking at search stats and CPC, I’d say $100K would be a fair price for BroadwayShows.com. That, to me, means Shows.com is worth $1+M at the least.”
If you are comparing broadwayshows.com and shows.com using “search stats and CPC” how do you conclude shows.com is worth ten times the price?
Traffic for the term “shows” looks to be worth 10%-20% the value of traffic on “broadway shows”. Secondly “broadway shows” is more popular as a term.
Shows.com is a real mix bag, selling broadway tickets is a possiblity but the name isn’t obviously targeted to it. Ranking well for a term like “shows” wouldn’t be the obvious boon that ranking well on “broadway shows” would be.
Agree about broadway.com though, that name is the big domain for the area, ultra high value, popular and has a huge amount of crediblity.
“I’d take $100K for BroadwayShows.com.”
I don’t doubt it (things like that have happened alot in the past) but I think it would be a huge mistake, it would be 10-12 years revenue. Would go well beyond 100k that at any decent auction house. 800k is absurd but at 100k people would be all over it ike a rash.