When seeking appraisals, domain owners often ask to distinguish between wholesale value and retail value. The wholesale value is how much another domain owner or bargain hunter would pay, while the retail value is how much a company that needs the domain name would pay to secure it.
NameMedia operates BuyDomains, which primarily caters to retail buyers, and the company sells millions of dollars in inventory a month. The company also operates Afternic, which sells company-owned domain names as well as privately owned domain names.
This morning, NameMedia announced the launch of DirectDomains.com, which the company is calling a “wholesale marketplace site.” This new site, which is currently being tested with NameMedia-owned inventory, will be targeting “value buyers.”
Here’s what the company has to say about the launch of the new brand:
“As the domain market continues to grow, we recognize that there is a need for a range of price points for difference audiences. We long-ago pioneered the premium domain marketplace, and today we still achieve the highest median price of any domain marketplace that sells in volume. Our research has shown, however, that could be a substantial opportunity in targeting “value buyers” with domains, and so we are testing that concept with this new site.”
I think it’s a good idea, but I hope it doesn’t cannibalize sales from its other platforms. If an end user buyer is looking at two names, I would hope he or she would select the better, higher priced domain name instead of the less expensive option.
Have a look at DirectDomains.com when you have a chance to see how the company is positioning the names. It’s a pretty cool looking site, and it’s a neat concept.
Nice site but I’d like to see “advanced search”
I was thinking the exact same thing when I poked around this morning.
Looking at the domains listed and taking into consideration the average price domain sold on Sedo and the relative quality of the domains sold on forums I wouldnt say that these are wholesale prices.
List 99% of the names listed on a forum and see if they make 4 figures.
BusinessCon.com was $3,088 now $2,007
$2000 for business con?
This sells for a grand on Sedo if its listed for 10 years and you will be lucky to get 20 dollars on a forum.
I would be interested in hearing your view Elliot with examples of domains listed you think are wholesale.
Will do if I have some time later on today. Just returned home after a trip and the emails have piled up.
I agree with Anthony. I would think this site was Bazaar 2.0. Catering to domainers. BuyDomains has plenty of names that sell weekly for $788 to $2000. So now there is another site selling the same ? Hate to tell NameMedia if you wanted $3000 and now want $1800 that’s not wholesale, they should know wholesale like what they offer domainers when they say sell us your domains, $25 to $50.
Elliot you make an excellent point too, I would tell every client I have check there before BuyDomains.com. It will take away from sales there. Now maybe this is just their stuff now, when domainers can sell it will become Afternic Bazaar 2.0.
An end user will not go to a wholesale site, instead follow the domain to the listing site where it sits for sale. Most end users google the name, and find an aftermarket link for purchase info, or lander info.
Mainly a secondary market, maybe domain flippers, or trend buffs might see a quick opportunity to grab a up and coming niche.
Doesn’t really make sense in the larger scheme of things.
I think the “name your price” feature is pretty neat and will certainly open the door to negotiations.
It seems to be just a great marketing ploy for a bad economy. End users will go anywhere as long as they get the name they want. Elliot is right, the “name your price” feature is a great way to “bait the hook” and slowly reel them in.
All major companies (clothing,electronics,etc….) all have outlets to sell overstock products that may not of done well in their regular stores so I think its a good move and the more user friendly and less business like design will attract another group of buyers for them but I do agree the prices are no where near wholesale. They don’t use the word “wholesale” on their website so maybe it was a wrong choice of words by their marketing department. Maybe they should choose “value” instead.
The one thing that never makes sense to me with Buydomains.com is when you land on a domain page and follow the link to their website it never gives you the price but only says that it is for sale and to call them but if you type that same name on the homepage it goes to the listing and has a price. Thats ridiculous!! Endusers hate having to go extra steps to find a name they want and most will never call and just find a name with a price instead. If Buydomains.com changed this one feature i can guarantee their sales would increase.
Todd
Just took a look at DirectDomains.com——
It’s the “Charles Schwab” of domain buying for the upincoming younger cybergeneration.
Have to agree with RH ,
They offer 25/50 all day long for “wholesale” names, so why ask 100x what they pay, thats not wholesale , thats whole rip off.
as long as they have the names, audience they will keep selling all day long.
Most if not all the names are the same price on buydomains and the rest of there platforms,
It’s just another site, different “make offer” feature and thats it.
No change in prices anywhere.
Like i said, they have the name, audience so it will work.
80% off what?
Its a horrible idea, i must admit.
Now since when did the xx% off started in domain ?
You just cant say for a sh1t names $1000 and give 80% off. If,so, Then i should say its a ripoff.
Am i stupid or is it a chicken in my domain soup again?
lets look at the Main Showcase :-
airlinetravel.org $1,000 $400 Add To Cart Name Your Price
domainlovers.com $3,888 $1,555 Add To Cart Name Your Price
airlineairfares.com $2,388 $478 Add To Cart Name Your Price
school-tours.com $888 $178 Add To Cart Name Your Price
schoolcanbefun.com $1,788 $1,162 Add To Cart Name Your Price
preschooltraining.com $1,688 $675 Add To Cart Name Your Price
Lets do a simple sum GKWT (Google)
[airline travel]
High
2,900
2,400
[domain lovers]
–
–
–
[airline airfares]
Medium
46
36
[school tours]
High
880
140
[school can be fun]
Low
12
< 10
[preschool training]
High
73
36
Deal Of The Day
Domain Name:
AirlinesCo.com
NOW ONLY
$438
why the hell should someone pay $438 after 80% of for this sh1t name ?
I will rather suggest to pay $12.99 and get the .co so, its more like airlines coco (heck name)Might have more value then airlinesco.com(airlines company commerce ) i dont mean i love .co after the sh1t head spoke against Domainers.
I think the guys are running out of innovative Ideas.
get a beer and chill out before you melt down. It remind me like bido… Holy cow… I thought it was a nice idea but who am i fooling? Gone with the wind .
Now, back to the point ..
Lets say i had my eye on airlinetravel.org and DD was price is $100 and now $400 but what if i had visited fabulous site http://www.fabulousdomains.com/?formdata%5Bdomain%5D=airlinetravel.org&formdata%5Bsource%5D=bannerrelated&formdata%5Brefurl%5D=&formdata%5Bpsid%5D=2441145&formdata%5Baffo%5D=43662&formdata%5Baffhash%5D=1344279167&utm_source=bannerrelated&utm_medium=43662&utm_term=2441145&utm_content=airlinetravel.org&utm_campaign=DOMAIN%20ACTIVE%20FOR%20SALE%20BANNERS and there it just say $400 which site should be more trust worthy?
Just look below and ask your self is this for real?
DIRECTDOMAINS.COM WHOIS
Updated: 3 hours ago
Registrant:
Namemedia Inc.
738 Main Street
#389
Waltham, MA 02451
US
Domain name: DIRECTDOMAINS.COM
Administrative Contact:
This Domain For Sale, Toll Free: 866-822-9073 Worldwide: 339-222-5132 @buydomains.com
738 Main Street
#389
Waltham, MA 02451
US
+1.866.822.9073 Fax: +1.781.839.2801
Technical Contact:
This Domain For Sale, Toll Free: 866-822-9073 Worldwide: 339-222-5132 @buydomains.com
738 Main Street
#389
Waltham, MA 02451
US
+1.866.822.9073 Fax: +1.781.839.2801
BuyDomains does not appraise names only on domain metrics (Valuate.com/Estibot.com) they also base the value on the price they purchased the domain, the traffic it gets, the parking it generates and for some names certainly some additionnal human considerations.
I really think they are discounting the domains, there is no lie there. Now for some names the final price can still be too high for domainers. The problem is you have to spend time searching to find the good deal because the site does not offer the tools to facilitate this task (domain metrics comparison), this is why I will say it’s more a discounted marketplace for end users (where hard working domainers can certainly find some good deal if they spend time).
Thanks for the heads up. I found a name to buy off the DirectDomains site. Below what I’d expect it to go for if it was on Namejet.
Does anybody know if BuyDomains reaches out to endusers?
I sent my contacts an email asking them to see your comment and reply.
Neil Kavanaugh from NameMedia asked me to post this reply:
“Hey, Elliot. As you know, on mid-tier and top-tier generics we do reach out to end users directly with some success. However, on lower priced (and typically quality) we haven’t seen a strong revenue yield for the extensive effort that is involved in researching and identifying the proper prospects. We are working on some more automated opportunities to reach small business end-users, which in the future we hope will provide the results necessary to sustain this type of outreach.”
Thanks for the follow up (Elliot and Neil). Much appreciated.
I don’t understand the delay in transferring the domain to my control. They own the domain so, there is no middleman.
I sent an inquiry to them 16 hours ago and still no reply
Just an update to my last post, shortly after I posted, I received an update from buydomains. Although, I do think things should happen a bit quicker when dealing with a company selling their own domains, I also should cut them some slack as there may be some bumps along the way with DirectDomains being a new platform for them.
The search functionality seems to be taking forever.