The story so far: I had a domain for almost two years, didn’t use it, and decided to try and sell it. The auction failed, so I kept it listed at GoDaddy’s aftermarket sales site, and waited. And waited. And waited.
The time: Last year
The scene: My e-mail inbox.
Dear Matt Lake,
You have received an offer for Item Number 1XX2O27 in the amount of $250.00. Log in to your account to view the offer.
It took me a couple of seconds to understand what this email was all about. I nearly trash-canned it. Then I cast my mind back 14 months and remembered: I’d put an old domain up for sale. And now, someone was trying to buy it from me. Well, there was a turn-up for the books.
I scrambled to look through my notes and noticed that the bid was considerably lower than GoDaddy’s estimate ($622 or higher). But it was higher than Afternic’s estimate of $200. And it was more than three times more than the $79.95 I’d sunk into the project.
So on one hand, I wasn’t an online entrepreneur of the order of Filo and Yang, Jeff Bezos, or Steve Case. But on the other hand, I’d made out better than if I’d stuck the cash in a money-market, or just spent it on outsized latte drinks at Clusterbucks. So I decided to take the money.
I had 72 hours to respond, so I hied myself over to GoDaddy’s Domain Name Aftermarket and started in on the process. Little did I know, it would take a month of waiting around and responding to various emails, and frankly, it was a bit irritating.
Day 1
I accepted the bid. Within the hour, I got the delightful message “Congratulations! The domain name Item Number 1XX2O27 has sold! Please do not accept any transfer requests of this domain at this time!”
I am told to wait and let GoDaddy handle the transaction. They’ll act as an escrow agent to ensure everything goes smoothly. This sounds good to me, so I wait.
Day 3
GoDaddy is pleased to inform me that they have received the proceeds for the sale of my domain. I am to log on and contact the buyer to begin the domain transfer process.
To do this, I must first unlock the domain to allow the domain transfer to proceed. Then I must collect the buyer’s account information to enter into a form somewhere on the site. This I do.
Day 5
GoDaddy sends email to tell me that I have initiated a change of registrant for my domain. I already knew this--I was there after all--but at least they're acknowledging the fact. Two days late, true, but they're acknowledging it.
Day 12
GoDaddy sends me another email with slightly different phrasing to tell me that I have initiated a change of registrant on my domain. If I meant to do this, I don’t need to do anything more. Yep, I did it alright. Nine days ago.
Day 18
GoDaddy tells me that the change of registrant went through. A second email dated one second after the first one tells me I have cancelled my account for the domain. I do a double-take on this one, and then realize that it’s a good thing. So I wait for the next dispatch--and my money.
Day 19
GoDaddy sends me a courtesy note to tell me that the whole transaction will be completed on a date ten days in the future.
Day 24
GoDaddy sends me the exact same courtesy note to tell me that the whole transaction will be completed on a date five days in the future.
Day 29
GoDaddy tells me that the transaction is completed. That’s great.
Now…where’s the money?
Day 34
GoDaddy PayPals me the money.
So there we have it. Nearly sixteen months after I started this process, a polite entrepreneur in Pune, India, paid me $250 for my domain. It wasn’t a coup like the sale of business.com to RH Donnelly in 2007 (that netted more than $300 million), but it was good enough for me.
The question was: Was it good enough for my buyer? What did he want to do with the domain now that he acquired it?
This all happened more than a year ago, so I’ve been tracking the domain ever since. So I know exactly what he did with it. And I’ll share that information with you. A little more promptly than GoDaddy shared the revenue for the sale all those moons ago.
[TO BE CONTINUED]
My balance sheet:
Expenditures: $29 in registration fees; $39.95 in appraisal fees; $10 in membership fees; $12.50 in Godaddy sales commission; various state, federal, and business taxes.
Total expenditures: $91.45 total plus tax
Total revenues: $250
Net gain: $118 minus tax
Total hours expended…who knows? But I’m sure that divided up, I earned roughly minimum wage out of the deal.
Showing posts with label tdnam. Show all posts
Showing posts with label tdnam. Show all posts
04 March, 2009
Buy My Domain, Episode 2
The story so far: I had a domain for almost two years, but didn’t use it. Instead of letting it expire, I decided to try and sell it. A couple of days of research later, I had an idea of what to do and what to charge. Now read on.
I figured I'd try to add to its curb appeal a little to see if I could get close to the appraised price. Step one: Put up a nice little welcoming Web page. Instead of displaying generic "for sale" or "parked" signs, I put up a sample live page demonstrating what the domain could be used for--and, of course, slapped a little "for sale" link leading to the domain auction.
Brilliant though this ploy was, it failed to elicit a single bid at auction. But it did improve the look of the lot, so it seemed like a good thing to do. And so did goosing up the listing a little, though this wasn't as easy. The Domain Name Aftermarket allowed 255 characters to describe an auction lot. Even to someone trained in the noble art of making text fit into highly designed magazine pages, that's quite a restriction.
Then I had a brainstorm: Why not get more hard evidence of my domain’s value? Why not get a second evaluation? At the time, TDNAM was a new kid on the block. Afternic was the grand master of domain name resale—they’d been around for a decade longer than Godaddy’s site. So I threw good money after bad and paid $20 at Afternic for a second appraisal. And it hurt. Afternic reckoned that the current market value of my domain was $200. Ouch! That was less than a third of what GoDaddy had estimated. Afternic reckoned that the domain's potential market value was $1,100—with significant development, of course—and that was about $600 less than the top end of TDNAM's evaluation.
But I’m an honest seller and wanted to look like one, so I cited Afternic's appraisal URL in my auction listing. I thought this made me look like a man with nothing to hide, one who showed due diligence, and one who wasn’t out for a quick buck. Exactly the kind of person I'd like to buy from.
Because it cost me as much as a hardback book, I actually read the advice Afternic sent along with its appraisal. It was generic but it reinforced what I’d already worked out for myself:
· Include the fact that you've had your name appraised. It lets potential buyers know that a third party has assisted in estimating the value.
· Feel free to use all or part of your appraisal notes.
· Always have your domain names pointed somewhere. When someone types in your domain name, have it point to your auction page, your domains-for-sale site, or even a one-page site with your contact information.
Check on the first and third items. I even made a nod to the second item in the one-page site I’d put up. So I'd now followed the best advice of the old lags in the market, and I upped the curb appeal on my little corner of the domain real estate market. I'd done just about everything I could to raise its profile short of taking out an ad in Computerworld.
And all this work increased the number of bids at the auction from zero to zero.
So I shelved the project, but kept my options open. I kept my membership in GoDaddy’s aftermarket site, renewed my domain for another year, and left the domain for sale at Godaddy.
Someday, I reasoned, someone would want to buy that domain.
I was right. But that day wasn’t coming anytime soon.
[TO BE CONTINUED]
My price tag so far:
$29 in registration fees; $39.95 in appraisal fees; $10 in membership fees
$79.95 total
The time: A couple of years ago
The scene: GoDaddy's domain resale site, The Domain Name Aftermarket (now auctions.godaddy.com).
I figured I'd try to add to its curb appeal a little to see if I could get close to the appraised price. Step one: Put up a nice little welcoming Web page. Instead of displaying generic "for sale" or "parked" signs, I put up a sample live page demonstrating what the domain could be used for--and, of course, slapped a little "for sale" link leading to the domain auction.
Brilliant though this ploy was, it failed to elicit a single bid at auction. But it did improve the look of the lot, so it seemed like a good thing to do. And so did goosing up the listing a little, though this wasn't as easy. The Domain Name Aftermarket allowed 255 characters to describe an auction lot. Even to someone trained in the noble art of making text fit into highly designed magazine pages, that's quite a restriction.
Then I had a brainstorm: Why not get more hard evidence of my domain’s value? Why not get a second evaluation? At the time, TDNAM was a new kid on the block. Afternic was the grand master of domain name resale—they’d been around for a decade longer than Godaddy’s site. So I threw good money after bad and paid $20 at Afternic for a second appraisal. And it hurt. Afternic reckoned that the current market value of my domain was $200. Ouch! That was less than a third of what GoDaddy had estimated. Afternic reckoned that the domain's potential market value was $1,100—with significant development, of course—and that was about $600 less than the top end of TDNAM's evaluation.
But I’m an honest seller and wanted to look like one, so I cited Afternic's appraisal URL in my auction listing. I thought this made me look like a man with nothing to hide, one who showed due diligence, and one who wasn’t out for a quick buck. Exactly the kind of person I'd like to buy from.
Because it cost me as much as a hardback book, I actually read the advice Afternic sent along with its appraisal. It was generic but it reinforced what I’d already worked out for myself:
· Include the fact that you've had your name appraised. It lets potential buyers know that a third party has assisted in estimating the value.
· Feel free to use all or part of your appraisal notes.
· Always have your domain names pointed somewhere. When someone types in your domain name, have it point to your auction page, your domains-for-sale site, or even a one-page site with your contact information.
Check on the first and third items. I even made a nod to the second item in the one-page site I’d put up. So I'd now followed the best advice of the old lags in the market, and I upped the curb appeal on my little corner of the domain real estate market. I'd done just about everything I could to raise its profile short of taking out an ad in Computerworld.
And all this work increased the number of bids at the auction from zero to zero.
So I shelved the project, but kept my options open. I kept my membership in GoDaddy’s aftermarket site, renewed my domain for another year, and left the domain for sale at Godaddy.
Someday, I reasoned, someone would want to buy that domain.
I was right. But that day wasn’t coming anytime soon.
[TO BE CONTINUED]
My price tag so far:
$29 in registration fees; $39.95 in appraisal fees; $10 in membership fees
$79.95 total
Buy My Domain, Episode 1
A few years back, I registered two domain names for a side business and wound up using only one of them. Instead of letting the other name go, I decided to try and sell it. This is the tale of how I priced it up, sold it, and saw what the buyer did with his investment. It’s a convoluted tale, and it’s going to take several blogs to tell. But stick around: There are dollar signs and a bit of a chuckle at the end of it.
Afternic.com
To begin at the beginning: I registered a domain for $15 at Directnic.com, transferred it the following year to Godaddy.com for $7, and sat on it for six months. Then I asked myself the question: Where can you sell domain names? A couple of years ago when this story began, the obvious choices were Afternic and Godaddy’s Domain Name Aftermarket (which is now called GoDaddy Auctions). They're still the obvious choices.
A quick look at these venerable domain aftermarket sites taught me two things:
1. People do buy second hand domains
2. People who sell them ask ridiculous prices for them, and seldom get them.
Something about TDNAM.com appealed to me: It had buyers. They were actually paying a couple of hundred bucks apiece for such names such as coffeefair.com, endsuffering.com, and my personal favorite, kungfujesus.com. My domain wasn’t quite as catchy, but it was short and businesslike and well-suited to a real moneymaking market. So I thought it stood a chance of making a modest profit.
To make sure I didn’t price myself out of the market, I needed to set a fair price, and that was the problem: What's a fair pirce? Luckily, most domain name aftermarket venues charge a small fee to analyze a domain name and figure out what the market will bear for such a name. I paid five bucks to get an automated appraisal from TDNAM.com, which shared some good news: This site (a GoDaddy property, remember) reckoned from a superficial analysis that the domain could fetch somewhere between $722.00 and $2,094 on the open market.
But how realistic is that figure? TDNAM.com didn't really explain their calculations--and the range was huge--so those figures could have been plucked out of thin air. However, TDNAM did offer a higher-end "seal of approval" appraisal for $14.95. This certified appraisal gives you the right to flag any domain you sell in their marketplace so that prospective buyers can see the appraised value.
The news wasn't as good this time around. The appraised value of my precious cargo was now $622 to $1,617--a C-note off the low end and almost a grand off the high end.
But at least it gave me a access to their appraisal methods--and these are valuable to anyone who wants to speculate in the domain name market. In a nutshell, these are the important factors:
Short domain names sell well; names with numbers, letters, and hyphens do not.
Words that are in vogue help jack up the price of a domain; generic names less so.
A dot-com domain will sell better than any other extension, such as .net, .org, or .biz.
And that's about it. The rest is in the details.
So there I was with a domain in my portfolio appraised between $622 and $1,617, ready to bring it to market. The question: When the gavel dropped, would it fetch anything near the appraised value?
[TO BE CONTINUED]
My price tag so far:
$22 in registration fees; $19.95 in appraisal fees
$41.95 total
Sites mentioned in this article:
Afternic.com
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