Drop Auctions Becoming More Competitive?

[Chris.C]

I have been watching and participating in drop's auctions for the last few months, and I was just wondering if anyone else thinks that there seems to be more bidders and the auctions seem to be achieving higher results

Would this have anything to do with drop reducing their membership price?

I'd be interested to know if anyone has been tracking, or if drop tracks, the revenue generated on a month to month basis? This would probably be a good indicator of increasing competition - might also be a good way to project domain price growth.

What are people's thoughts?

 

[soj]

Yeh the domain auctions have got a lot busier, and have also noticed bigger domains being purchased by non-domainers. Drop may have been contacting businesses when big names were dropping to get some healthy competition happening, not too sure on that.

The month to month would be useless, as you could have a moth where no big names drop, and one big name will definitely affect the numbers.

But there is definitely an increase in competition and in prices. Great if you own a few names, bad if you're just getting into domaining. Either way, a lot of names are still very good value.

 

[snoopy]

Drop may have been contacting businesses when big names were dropping to get some healthy competition happening, not too sure on that.

I think they must be given some of the buyers.

 

[Chris.C]

Yeh the domain auctions have got a lot busier, and have also noticed bigger domains being purchased by non-domainers.

Good to know it's not just me feeling like a small fish.

Drop may have been contacting businesses when big names were dropping to get some healthy competition happening, not too sure on that.

It would make sense and IMHO I think it would be a good thing. It's good to see domains end up in end user hands to be utilised for what they were designed to be used for.

Plus a rising tide lifts all ships.

The month to month would be useless, as you could have a moth where no big names drop, and one big name will definitely affect the numbers.

Most months there are some good drops, but these days I'd be arguing that a larger and larger proportion of the non premium domains are making up a significant part of drop revenues. So even if the outliers created a bit of volatility I think looking at the trend would be very interesting to analyse.

But there is definitely an increase in competition and in prices. Great if you own a few names, bad if you're just getting into domaining. Either way, a lot of names are still very good value.

I'd say there are still quite a few low to mid $XXX domains (at todays market rates) to be registered if people are just starting to get into domaining.

Might mean throwing lots of dollars into development may not be worth it, but if you're running a bootleg operation and are willing to whip something up yourself to make a bit of money in between your day job there are definitely opportunities.

Just my thoughts.

 

[Simon Johnson]

I'd be interested to know if anyone has been tracking, or if drop tracks, the revenue generated on a month to month basis?

The short answer is yes. We track domain sales across all the major markets and (of course) I have a personal interest in .au

What are people's thoughts?

While there are a lot of buyers, there are also a lot of people dropping domains, so the quality has increased.

 

[Chris.C]

The short answer is yes. We track domain sales across all the major markets and (of course) I have a personal interest in .au

Planning to release and SEDO style domain market analysis?

While there are a lot of buyers, there are also a lot of people dropping domains, so the quality has increased.

So you think the quality of domains have gone up? not the willingness of domainers to shell out a few more pennies?

 

[Drop.com.au]

Hi All,

As you have noticed, the Drop auctions have indeed got a lot busier.

We have made a concerted effort to grow our customer base through a mix of marketing initiatives. The fact that we can boast a consistent 98% plus catch rate helps - we are finally getting traction.

It’s interesting to see the observations that we are getting more purchases by non domainers. We do attempt to contact end users when we see names that may be a particularly good fit, however we are finding that, more and more, the end-users are actually coming to us. The message is getting out there. We now have ad agencies, marketing companies and large companies at the top of their vertical amongst our members.

It’s great to see these efforts pay off -we now have more active bidders than ever some record prices paid for domains

Having said that I can’t believe how cheap some of these domains go for!

Cheers

Andrew

 

[Simon Johnson]

Planning to release and SEDO style domain market analysis?

We already have real-time reports broken down by TLD/ccTLD etc... Our sales database is also available for free. What else would you recommend?

So you think the quality of domains have gone up? not the willingness of domainers to shell out a few more pennies?

Its definitely the quality. Domainers are letting large chunks of their portfolios go as they can't afford to keep them parked.

 

[Data Glasses]

i think you would be one of the lucky few if making money off parking , no doubt someone here will state they are doing well off parking , not me though

 

[Chris.C]

Once again Drop over the last couple of days has been netting some really good dollars for domains that I don't think would have achieved prices anywhere near what they have been achieving in the last couple of days.

Am I the only one who thinks that prices are once again on the up?

 

[snoopy]

i think you would be one of the lucky few if making money off parking , no doubt someone here will state they are doing well off parking , not me though

The market for parking .com.au's is extremely small, its either spillover/typo traffic or a very low ROI if it is really natural traffic eg trying to buy something like films.com.au to park. Then again the .com market isn't great for that purpose now either, high multiples and negative revenue growth.

 

[Data Glasses]

the secrets out regarding the drops and it is quite surprising to think that some of the better quality names drop , it seems to show the industry is still very much unknown

 

[Chris.C]

Well today was no doubt very competitive. There is some serious competition out there at the moment?

Are the days of picking up bargains behind us?

 

[geodomains]

Are the days of picking up bargains behind us?

No not at all, just have to pick the low hanging fruit as they say. If you are comparing to 2 years ago, well yes.

Don