{"id":4730,"date":"2015-08-05T12:56:48","date_gmt":"2015-08-05T16:56:48","guid":{"rendered":"http:\/\/acro.net\/blog\/?p=4730"},"modified":"2015-08-05T13:02:25","modified_gmt":"2015-08-05T17:02:25","slug":"expired-domains-auction-trickery-wont-get-you-an-accurate-valuation","status":"publish","type":"post","link":"https:\/\/acro.net\/blog\/expired-domains-auction-trickery-wont-get-you-an-accurate-valuation\/","title":{"rendered":"Expired domains auction trickery won’t get you an accurate valuation"},"content":{"rendered":"

For several years now, some domainers attempt to gauge the value of their domains by engaging in a simple trickery.<\/p>\n

By allowing their domains to expire and be entered into an auction, they perceive the winning bid to be an accurate representation of value.<\/p>\n

This practice is not only frustrating for the winner<\/strong><\/a> of the auction, but it also produces false results.<\/p>\n

Depending on the particular venue, the auction can be reversed in a handful of days at GoDaddy, or up to 42 days for eNom domains at NameJet auctions. I believe that expired domains at Fabulous are auctioned at NameJet and are retrievable by their registrants until the last moment.<\/p>\n

Naturally, these auctions are advertised to domain investors primarily, and are heavily promoted by fellow domainers. The old phrase, “selling ice to the Eskimo<\/em>” comes to play here.<\/p>\n

With that in mind, it’s very rare than end-user buyers ever participate in these expiring auctions. Definitely not for the typical “coin domains” that some refer to as “liquid.”<\/p>\n

Even if an end-user party followed a domain’s renewal year after year, in hopes that the registrant would not renew it, cases where the prospective buyer engaged the services of a drop-catching service, or an auction are extremely rare.<\/p>\n

In fact, the failed “expiration for evaluation” trick, triggered another practice, that for years flourished on NameJet: front-running domains<\/strong><\/a> by contacting prospective buyers while the auction is on-going.<\/p>\n

To get true valuation for one’s domain, the domain must be marketed as an asset for sale<\/strong>, across numerous venues. It must be promoted, advertised and carefully presented as a commodity with value, not as a leftover that was allowed to expire and drop.<\/p>\n

Domain brokers can assist with that approach, as they maintain data on sales that were achieved under an NDA, as well as more detailed public data on their corporate buyers.<\/p>\n

Domain valuation for the sake of selling a domain is not achievable when your asset is in expiration mode, particularly with a bidding page that shows current bid activity. A lot of buyers require privacy and often lack the basic trust to even create bidding accounts at domain auction venues.<\/p>\n

The psychology of the end-user buyer is completely different<\/strong> than that of your typical domain investor, who is well known for being ‘stingy’ with their investment spending, on top of that.<\/p>\n","protected":false},"excerpt":{"rendered":"

For several years now, some domainers attempt to gauge the value of their domains by engaging in a simple trickery. By allowing their domains to expire and be entered into an auction, they perceive the winning bid to be an accurate representation of value. 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