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Make you think twice before buying another name

Discussion in 'SEO & SEM Discussions' started by Billy01, Aug 9, 2012.

  1. DavidL

    DavidL Membership: VIP

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    auDA Member:
    Yes
    Great thanks for agreeing that values have risen (I know you couldn't quite bring yourself to say it but that's what you mean, right?)

    Whilst those sales results just show the market growing (well booming actually), everybody understands that there's a lot more to making money that just throwing money at a booming market. All markets have their fluctuations, time requirements, holding costs, administration etc.

    However, I will have to comment on your figures as you've gotten a few things wrong.

    COR costs $18.50 at NF or $20 at VIP or Drop. I don't think any domainers pays anything like $50 anymore. So the first figure should be 179 x $20 = $3,580. Then there's the fact that this data was over 2 years not 4 years so renewal costs are not necessarily required. Let's split the difference and assume that 50% were sold just before 2 years and 50% just after so thats 90 x $20 = $1,800.

    But although you were about $7,000 out in your maths, I'm sure we all take your point that even though values are booming it doesn't equate to an automatic profit for the domainers. Just like people lose money on real estate or shares in a growing market.

    Billy01 seemed to suggest that ranking changes could make domains less valuable but didn't explain why in the end.
     
  2. Billy01

    Billy01 Membership: Community

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    Thats not what I meant

    Congrats London for putting on an awesome start to the day.

    What I meant was that with an android phone for eg as voice search takes off on mobile the need for a great domain is more important than ever.

    EG compare credit cards is what we would say into the phone

    We wouldn't say as often credit cards compare

    However we've seen some good sale prices in the past.

    I wouldn't want to have been the buyer of these names.

    I haven't bothered to look at who owns what as I don't care I just know the mobile numbers are staggering.
     
  3. snoopy

    snoopy Membership: VIP

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    I don't think this is a booming market, prices have risen but you've got loads of expenses and red tape that saps a very big chunk of any profit. Stand around at any get together and see if you can hear stories of people making a lot of money from .com.au, I haven't heard any such comments. In fact a lot of people agree with my negative banter about .com.au not being a proper market, so either the are just being polite (or falling asleep) or a lot think that way as well.

    The main issue though is that whilst drop prices have increased there is no liquid aftermarket for people to sell into, so when someone buys a name at auction I think it unlikely they'll find a competitive market when it is time to sell, here is a good example,

    http://www.dntrade.com.au/mothersda...t4931.html?t=4931&highlight=mothersday.com.au

    If there was any sort of liquid market people should be jumping all over that, instead not a peep at half the auction price. I think the .com.au bought at auction that can be flipped for a profit after a couple of years are the exception, not the norm.
     
  4. snoopy

    snoopy Membership: VIP

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    Don't know, it doesn't sound logical to me to type "credit cards compare", but if people do, they do, and probably just as logical (or illogical) to say it into a phone).

    But we call know what will really happen,

    "Search Credit Cards Compare"

    "Ok searching for Birthday Cards Beware"
     
  5. DavidL

    DavidL Membership: VIP

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    auDA Member:
    Yes
    ... by 233% over two years. Dunno - in my books I'd call that 'booming'. Imagine if share prices or property had the same results.

    Should have been there on Friday ;)

    You keep bringing up that example but that's just one solitary domain. Also your golden rule (which I agree with):

    doesn't apply here. From memory, that domain was bought for its starting bid after a lot of one-on-one work had gone into getting the buyer to bid. So its purchase price was less likely to be reflective of market value than say a no reserve auction. Also the sales attempt was a single thread on a forum - very different from the purchase scenario.

    Maybe you didn't know the background...?
     
  6. Ash

    Ash Membership: Trader

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    Seems to me the word 'compare' would be a filter they add to their search criteria after they realise 'credit cards' returns too many results.
     
  7. DavidL

    DavidL Membership: VIP

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    Yes I think that's right. Just like search terms with 'australia' on the end often tend to have surprisingly high volumes. Also Google tends to suggest searches like these too which again would feed into the figures
     
  8. Billy01

    Billy01 Membership: Community

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  9. findtim

    findtim Membership: VIP

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    auDA Member:
    Yes
    +1 , so true

    tim
     
  10. snoopy

    snoopy Membership: VIP

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    Like I said there is no factoring in of real costs (cor and renewals) that domainers would pay, plus the fact that they can't get drop prices when selling.


    David, it got $7500 at drop did it not? To say it is a different scenario to how it was purchased is exactly my point.

    Domainers have no real market to sell into. If they buy on the drop and then try to sell after a couple of year I think it most cases they will not be making a profit, especially after the fees they'll be paying. There is no liquid aftermarket for .com.au domains.
     
  11. DavidL

    DavidL Membership: VIP

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    auDA Member:
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    For the umpteenth time, we're not talking about the costs of trading - just the values of the underlying asset.

    We all know that there are costs associated with buying and selling domains just like with any other asset.

    At Drop as an aftermarket sale. Totally different method of sale to a forum post so you can't draw conclusions about any value change..


    Again, for the umpteenth+1 time, that's not what the discussion was about. Feel free to start a new thread though and I'll respond there (although I'm afraid I will probably agree with much of your statements)
     
  12. snoopy

    snoopy Membership: VIP

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    David, you keep talking about a booming market, I'm talking about how not much money is being made in reality.

    When you say "we're not talking about the costs of trading", I think you should use the word *I'm*, because it is you who would prefer to ignore this.

    David,

    Reread the thread, it is about voice recognition and how it might effect the domain market, it is you who took as down this merry path......with this post below,

     
  13. DavidL

    DavidL Membership: VIP

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    auDA Member:
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    Not at all - I said I'd be happy to respond in another thread. I even said how I will likely agree with you on many matters.

    I was simply responding to Chris' post:

    But yes, you are right, the original post was about voice recognition where, again, you are arguing with everybody else. So I'll leave you to argue that the technology is crap with the other guys....