Have you looked around lately at the newer domain name auction platforms? What happened?
The lifespan is shorter these days for smaller domain auction websites that try to launch amongst the big auction houses like Sedo.
Since Bido closed down in May this year, the startup that was funded by Sahar Sarid who is well-respected within the Domain community, hasn’t come back online — despite being put up for sale months ago.
The Low Quality Domain Stigma
Nothing gives life to an auction like a premium domain name and low asking prices, and few auction websites are willing to implement the strategy.
Even sites like GreatDomains who run monthly premium domain auctions, can’t seem to keep a quality inventory month to month, especially an inventory with attractive pricing.
Francois Carrillo’s BargainDomains.com might do the best job at listing domain names cheaper than they should be.
To submit domains for sale, domains must appraise at least $250 to even be considered. This strategy immediately helps to eliminate the poor quality domain names, and it forces sellers to list their names at bargain prices – a bonus for prospective buyers on the hunt for deals.
The still-new AuctionPus.com launched by Andrei Polgar, promised no more crappy domains for sale, a problem that plagued Bido’s platform where names like GlassesFreeTV.net were listed for sale at $1,199.
While many web sites promise change, it’s hard to deliver.
AuctionPus has noted a slowdown. Though Andrei Polgar is very familiar with Domain Investors and he has had success with other ventures, AuctionPus has yet to be one of them. Though names are displayed on the website daily, you’ll be hard pressed to visit the website and see a name with a bid.
Given the ease of starting a website these days, the difficulty lies in the business model and differentiating yourself.
While domain name auctions (both online and offline) have drawn a large number of critics in 2009 and 2010, it is still nice to see startups giving it a shot in hopes of creating the winning formula.