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Mike Mann on Domain Tasting

Received this email from Mike Mann this afternoon:

First off I have never done domain tasting, nor did BuyDomains.com when I managed it, and our new domain trading and building platform, DomainMarket.com, doesn’t either. When we and others first began thinking about it around 5 years ago it was bad protocol at best, and really considered a Denial of Service (DoS) attack against the Netsol/Verisign registry system since robots slam the systems to buy thousands of name at once; so it was against NSI/VRSN rules and possibly illegal too.
However once Verisign realized how many domains would ultimately be registered to their benefit (eventhough I imagine 99% of the inventory is never paid for and is re-deleted back to the unregistered pool of potential new domains) they decided domain tasting for 5 days to measure the PPC traffic and value and buy the statistical gems was OK.
However domain tasting is indiscriminate and buyers end up having their robots purchase other peoples’ clear trademarks, as well as a lot of lewdly suggestive names, or names that once resolved to questionable content. So again its nothing Id want my team to take part in.
In the past I thought nobody should do it. Today I think it should actually be done by others carefully for one simple reason: It’s good for the economy. People are typing in and clicking on legacy domain links for expired domains, and if they get a 404 error it’s a waste of time, energy and bandwidth – and nobody gets paid, however if it lands on a tasting speculators PPC page or monetizable site then someone is getting paid, and they can pay their employees, taxes, and tips at the local restaurant, etc. So domain tasting while lame in most respects is still good for the economy.
I’ve rethought this subject and I think it’s good for others as long as they don’t buy trademarks or domains that they deem offensive. Outside of moral considerations they need to be concerned about being sued or harassed somehow, which could have negative financial consequences, balanced by the value of the trickle down economics accidentally applied to attorneys and their caddies.
Thats all, LMK what you think. Cheers

Potential Bias of Domain Price Guides

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I don’t know think I personally know anyone who operates any of the various niche domain price guides, and I don’t think I’ve visited one in a couple of years, but do the owners/publishers own names in that niche? If they do, wouldn’t it be a bit biased to publish pricing material, where their financial holdings would be impacted by a change in price?
For example, if I own a whole bunch of names that begin with 123, and I start a price guide called “123Name Prices,” wouldn’t it be silly for others to read my price guide and consider it an authoritative source, when the value of my names could be impacted by what I publish? When it comes to domain values, I trust my gut and my own personal instinct. When I really need to look for comps, I look at the DNJournal Sales Report as well as DNSalePrice.com, which has an archive of most public sales dating back several years.
I am all for people building websites about smaller niches within the domain industry, but I think people should ask questions when looking at a niche price guide to ensure there is no bias whatsoever. Do the publishers own names in this niche? Do the publishers review all reported sales (looking at escrow/bank statements)? Are ALL public sales taken into consideration – even those that aren’t reported but occur on a public platform (forum, auction, aftermarket site)?
If there is any way a domain price guide could be biased, the person who is relying on it for accurate information should ask those questions before quoting the source.

Domain Market Resting

With the most recent TRAFFIC auction not performing up to my expectations considering the quality of the domain names at auction, I think the premium domain sales market is taking a temporary breather. Sellers still have high expectations for their domain names and buyers are reluctant to pay those prices, causing a stalemate. While there are still areas of growth persevering in niche markets, the overall market is resting.
Previously, domain owners could expect their premium domain names would sell for anywhere from wholesale to end-user prices at an industry conference live auction, but that hasn’t been the case for the past two main industry events. In many cases, buyers aren’t willing to pay the premium asking prices right now, and the sellers are reluctant to lower their reserve prices, causing a stalemate in the market. While this might be a cause for concern for those who are heavily invested in domain names, it could develop into a good buying opportunity, so liquidity is important.
While $10 million in domain sales

TRAFFIC Live Auction Nets $4.3 million

I don’t think the results were particularly strong for tonight’s TRAFFIC West auction in Las Vegas, but it resulted in $4.3 million in domain sales. There were some great names up for auction, but in the end, most of them didn’t end up selling.
The silent auction continues for the next few days, and the names that didn’t sell will be available to purchase. The full auction sales list can be found at TheDomains.com.

Australian Beach Domain Name For Sale

I am looking to sell a geographic .com domain name for the Australian beach resort town, Trinity Beach. The domain name I am selling is TrinityBeach.com.
Domain Name is now Sold.

Reminder: New York Domainer Dinner

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I wanted to remind those of you in the New York area that we will be getting together for an informal dinner on Tuesday, February 26th at 7pm. There are 18 people who have confirmed so far, and a couple more have verbally confirmed to me but haven’t responded to the Evite I sent out.
If you are interested in attending the dinner, please drop me a note and I will send you the Evite. This promises to be a fun networking event for people involved in the domain industry. I am looking forward to seeing and meeting you in a few days!

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