Auction Fever – Think 5 Years from now…

It’s interesting to watch price action on dropped names.  The logic behind many of the end prices defy any domainers valuation method.

Some are steals – (like dmvrecords.com a few days ago at NameJet). I was jet-skiing with some friends and forgot to raise our maximum bid before leaving the crib.  Anything under $25k was a steal and yes, you stole this one (ending price $8,664)

However, many more are just silly purchases.

For those silly purchases – ask yourself …

Unless the domain has incredibly high traffic (which is not always easy to tell) why pay thousands of dollars for names that are not brandable, have no resell value and are just plain dumb?

Again, I’m referring only to the dumb names – the ones we all ask ourselves – who would ever buy that name?

In our opinion (and it’s only our opinion), if the name has barely any development value nor easily pronounceable keywords then you probably have just purchased a time bomb which will explode when your back-links disappear or Google scrubs the domain in its next death round of indexing.

Remember, we all speak about development – these type of purchases very rarely add development value nor provide liquidity in times of need.

Personally, I’d rather go after the select ones we want at NameJet, head over to SnapNames to pick up the deals on domains with pure keyword value (usually sitting on the home page) and consistently search for good names all over the place.

At the end of the day – development value and liquidity are the most important things.