PROBLEM – SO FEW BROKERS FOR DOMAINS VALUED At $30K and LESS:
It is understandably hard to find reputable domain brokers willing to broker domains that are valued at $30,000 or less. With few exceptions, each domain broker will start their brokering process by first gather intelligence on a domain to understand both its history and potential. This intelligence will help the broker match the domain to a list of prospective buyers. The broker must then contact potential buyers in a way that will more likely get their attention and gain their trust. In many cases, the broker must literally educate the prospective buyer about domain value and applications. The broker may need to repeat this process across hundreds of prospects in order to get the right one with the interest, budget, and power to close on a sale. These upfront time and resource investment by the broker in selling a domain name often goes unrewarded. This risk assumed by the brokers, makes them more focused on selling pricier inventory. Domains valued at $30,000 or less requires a more cost effective method of selling to end-users.
THE COMMON SOLUTION: The most prevalent cost effective solution in the industry at the moment to sell this price range of domains is via a cooperative domain sales network such as GoDaddy/Afternic and Sedo. This approach uses domain registrars to serve up alternative domain suggestions to their clients who attempt to register a domain. The logic is that people will consider buying a similar domain from their network should the targeted domain string not be available for new registration. This method of sales is 100% reactive to demand, as there are no proactive promotions or market stimulation. The results are massive auction inventory build-up, but little inventory churn. Likewise most domains using this method require a BUY NOW price, so there is no competitive bidding for the domain.
THE PROBLEM FOR BUYERS: Many businesses operate their online properties using inferior domains. These businesses through ignorance of opportunity swim upstream by paying for traffic, rather than gain targeted traffic by effectively using a domain name. I have seen many businesses budget $10,000 per month to buy traffic, when that same traffic could be obtained through the acquisition of a few select domain names at a lower price. Even when buyers “get it”, they still may be on guard for domain broker solicitation from people they do not know.
THE ABOVE SOLUTION: We believe the solution to the problem is to run a schedule of “Themed Auctions” which are domain auctions targeted at identifiable buyer groups and where there may be opportunity for some strategic collaborating. Above.com will conduct a series of themed auctions throughout 2014. While not a new concept, themed auctions can be very effective in connecting the right buyers and sellers. Themed auctions are vastly more cost effective to promote and have a much greater chance reaching the intended buyer because the marketing message can be better concentrated on specific buyer groups. Many ideas would work for themed auctions to the benefit of the large buyer groups. In some cases, it may be beneficial to work in partnership with an industry event, or some industry representative group, in order enhance the chances to reaching qualified buyers. We are open to doing what is needed to cost effectively move domain inventory to the satisfaction of both our buyers and sellers. Ideal partners should be representative organizations, whether they are trade conferences, industry forums, user groups, or any established representative trade organization. They provide additional value to their constituents, and foster an entrepreneurial environment that benefits their stakeholders. Partners influence domain selection, help promote the auction to their members, and receive a share of the auction commission.
We will be announcing the first few upcoming 2014 Themed Auction schedule soon with the intent of having ongoing Themed Auction throughout the year. Selection of the themes is predicated upon several factors, including size of market, how focused demand is, reserve price and selection of inventory.
The first announced Above.com Themed Auction is the Affiliate Auction at http://www.above.com/marketplace/affiliate.html. This auction was announced at the recent Affiliate Summit West conference in Las Vegas. Bidding is open to the public. This auction ends on February 14, 2014 at 12pm PDT (UTC – 8).
If you would like more information about the Above.com Themed Auctions, please contact us at http://www.above.com/contact.html.
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