Subscribe

Home Blog Page 16

Great NPR Podcast Explains the Value of Domain Names

Several weeks ago, Rick Schwartz shared that he would be a guest on an upcoming Planet Money podcast on NPR, where he chatted about domain names. The podcast was released yesterday, and it was one of the best podcasts I’ve heard that explains the value of domain names and the role domain investors play in the marketplace.

In addition to having Rick Schwartz as a guest, Snagged Founder Rob Schutz was also a guest. On a related note, I think Rob is able to offer some really good insights about domain name since he has considerable experience in the startup world, and works with numerous founders at various stages of corporate life. Rob was able to offer his insights as a domain broker while sharing some thoughts about the value domain names being to various startups.

GoDaddy “Reputable Search” Tab Addresses Front Running

3

Since domain names first became commercially available to register, people have accused domain registrars of front running. In short, front running is when a registrar is suspected of using customer search data to preemptively register domain names that someone else searched for, with the intent of reselling them at a higher price. This undermines trust in the registration process.

As the world’s largest registrar, GoDaddy has faced many accusations of front running. The company has repeatedly and emphatically denied that it does this. I’ve published official statements from GoDaddy regarding front running at least three times.

Capturing an Eye Catching Domain Name

Have you ever stopped what you were doing to take a picture of a domain name? Maybe you passed a billboard while driving on the highway and went completely out of your way to pass it again and take a picture. Perhaps you were taking a walk in the city and you saw a domain name that made you stop and whip out your phone.

I probably have dozens of photos of random signs, billboards, and other advertising materials with interesting domain names. Most of these are exceptional domain names that caught my attention, but there are plenty of images of cringy domain names that I don’t understand how any business with common sense would consider using. Sometimes I write about these domain names – like Direct.com – and sometimes I share elsewhere.

Multiples on Domain Investments: 10 Recent Afternic Sales

1

I would say the two most commonly asked questions I receive about domain name investments are related to the amount of time I hold my domain names and the multiples I get on them.

I think there is a common school of thought that a 10x multiple is what people seek, and I don’t entirely agree. On low cost inventory acquisitions, I might shoot for 20-100x multiples, and on higher valued domain names, I might seek 10x more or less, but I might take 2x depending on how long I’ve held the domain name, how much interest there has been in the domain name, how many prospective buyers I see, and my desire to add cash to the coffers.

I have come across multiple multiple conversations lately, and I thought I would illustrate multiples by sharing my last 10 recent sales made on Afternic along with the price I paid to acquire the domain name.

Lsland.com Typo Auction on GoDaddy into the 4 Figures


The Lsland.com domain name is in an expiry auction on GoDaddy Auctions. There are several bidders competing for this typo domain name, and the high bid is $1,010. Peter Askew highlighted this on X earlier this morning:

Dan.com is Done

6

The time finally came. Dan.com has been completely shuttered by GoDaddy.

The innovative platform was acquired by GoDaddy in 2022. It was operated independently for a short period of time, and the platform was absorbed by GoDaddy and Afternic. Earlier this year, it was announced that Dan.com would close down over the Summer, and that time has come.

If you visit Dan.com now, you will be forwarded to Afternic with a Dan.com tracking url.