Hips.com Sells for $25k via Great Domains Auction

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Hips.com

Hips.com was sold for $25,000 via Sedo’s Great Domains auction this afternoon. There were 8 bidders who participated in this reserve auction, and bidder #7 was the winning bidder.

I was actively following this auction, but I did not end up bidding. I was prepared to bid on the domain name, but I decided to sit on the sidelines once it passed a number I was willing to risk on this investment.

I think there are quite a few uses for the domain name. There is the brandability of a company/business called “Hips,” as well as the replacement hip market and hip doctors. There are also quite a few companies and organizations that use the HIPS acronym, as evidenced by the ownership of Hips.org and Hips.net. I am sure you can think of other ways Hips.com could be used.

On one hand, I think the buyer got a very good deal on Hips.com as short, meaningful domain names like this have been selling for more and more. I also feel like the seller got a fair deal for the domain name, too, because it’s tough to say whether it would sell for more money.

The value of Hips.com was difficult for me to peg, and that made it tough to justify paying more than the $25,000 high bid. I have been watching the auction for a couple of days, and I was waiting to bid at the last minute when the high bid surpassed what I would have paid. As discussed in an article this morning, even if I had been willing to participate in the auction and bid higher, there is no telling whether or not I would have been able to outbid the winning bidder.

I am curious if you think the buyer got a great deal on this name at $25,000 or if the seller made out better. Of course, it could also be a deal that was great for both parties.

One thing to keep in mind is that because the auction ended today, it is unlikely that the deal has closed yet. I don’t have any reason to believe the deal won’t go through, but I know that some people complain when they see reports about auctions that haven’t closed yet, so keep that in mind.

17 COMMENTS

  1. This domain name was brokered by Dave Evanson as a premium name, so it clearly implicates that the seller had expected much better result.

    If I were the seller, I would expect to get at least double if not tipple.

    If I were the buyer (investor kind), I would offer $20k, having a vision (or hope) to flip it for $30k within 6-9 months.

    • There was a reserve price, so I presume the seller would be content with that number.

      On a separate note, you pay $20k for a name hoping to get $30k? I personally expect far greater returns. I don’t think I would stay in business if I was paying 50% of my expected sales price. Sometimes I need to sell for that ROI or even less, but usually it is after considerable debate and to just sell quickly. When I am buying, I want and expect far greater returns.

    • It says 50% in 6-9 months.
      If held longer, expected profit would be certainly higher.

      Elliot, what is your average annual return rate, if I may ask?

    • Sliding scale …

      Cayman Islands, Panama, etc.
      I think a lot of your domaining friends do/have business in those locations, right?

      Is that what you are referring to?

    • No…. I don’t really know what that has to do with Panama or the Caymans, so maybe I am missing something.

      For some of my assets, my expected return likely goes down the longer I hold a domain name. For instance, I bought a name 2.5 years ago that I had trouble selling. I thought I could get 2-3x what I paid in the short term. Long story short, I ended up selling it last week via outbound marketing for somewhere around 30% ROI. It was a bit disappointing, but I was happy to sell it profitably because it didn’t get many inquiries and didn’t earn much in the way of PPC revenue.

      I understand what you’re saying though. With LL.com, LLL.com or NNN.com domain names, my expected ROI would continue to increase over time as the values increase. It’s not a given, but it’s been pretty consistent.

    • “Domain was listed at $5k as per Whois on domain tools but could be an opening offer.”

      I believe that is because the high bid in the auction was $5,000 as of yesterday and not a reflection on an asking price.

  2. As far as I am concerned someone bought a so-so $XXXX+ one word or a great acronym.

    To justify the price based on the fact it is a body part is…well is all there is to say. If it turns out to be an acronym purchase I can swallow that one easier.

  3. This is definitely an interesting sale because of the type of domain Hips.com is. In my eyes when I first look at it I see a common known term in hips but I also see a 4 letter .Com that has meaning.

    With 4 letter .Coms being so hot and just the potential of a name like hips in the health related industry I believe the buyer got a good deal. Whether they want to start their own business with it or even flip it for a higher price.

    – Will

  4. US taxpayers may be able to flip for less – and keep more after tax for still acceptable ROI – using smart self-directed wealth planning strategies.

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