Auction Recap, 8th of December

Dec 08 2015

The Daily recap of Shane’s Auction Picks, the 8th of December and my Liquid Domain Theory.

Average Chip Sales yesterday as reported on NameBio.com  $2,430.18

Recap Quick Overview 

Ok so here’s my Theory on domain liquidity and valuation, I posted the essence of this on namepros the other day. It’s more of a working hypothesis than a theory, as I haven’t explored in completely. It makes sense in my head anyway.

When talking about liquid domains, speculative domains and this whole arena that we find ourselves in, we need to define the fundamentals. I believe these fundamentals have been defined as short, pattern and meaning, not in any particular order.

 

We all know that we’re navigating uncharted waters. We don’t have omnipotence but we can use our brains and see what’s been working and trending to understand these fundamentals. Let’s take 4 character .COM’s for our example. We’ve watched every CCC.com increase in value and none have been available for years. Obviously LLLL NNNN .coms are time tested and great.

recap meme for 12/8 2015

So it stands to reason that any CCCC.com has some kind of value, because it meets at least one of our fundamentals, short. Pattern and meaning are bonuses that increase the value of the CCCC.com.

 

I actually think that within the liquid market you can assign value to anything that meets the requirements. However the value may not always be above reg fee. So for example random LNLL.com may only be worth $4 right now.

 

We can then apply this theory of liquidity to other extensions using their current percent of the .com value. Say for example the floor for 6n com’s is $25, 5-10% of that puts the worst 6n net at $1.25 to $2.50. We can calculate the value of any other 6n.net based on the fundamentals and the prices set by the com’s. Since the “short” is constant in this example, it falls to pattern and meaning to increase the value above the floor.

 

If this theory is indeed accurate, we can make purchases based on trends, and availability as the value of the name approached Reg fee. This isn’t always the case as the best deal might be buying when the current value of the domain is at 50% of Reg fee, wait too long and the price jumps. Then there are things to consider like, commission,  other sales costs, and back-order prices. Is the asset worth buying when it’s value reaches the registration fee? or when it gets to the lowest possible backorder price?

 

This whole line of thinking only applies to liquid wholesale pricing and not end user sales, and just as we shouldn’t determine the wholesale value based on random end user sales, we can’t place the floor of the asset based on BIN undervalued sales. Pricing mistakes are made everyday. Just because someone mistakenly puts the price of a 4L chip at $900 doesn’t mean that’s the new floor, it simply means that someone got lucky and found an undervalued deal.

 

So I think a great point to take away from this, if you determine it’s not all BS, is that when looking at any liquid domain string to speculate on,  you can assign a value based on data and research. The key is to find the strings or individual domains that are just under Reg value and are trending up, or better yet the ones that were missed and have above reg or above backorder value. This concept can cross strings and niches based on any of the fundamentals. If we focus on 5l.com’s that have absolutely no meaning or pattern and ignore 6L with pattern and meaning, I think we’re missing out and becoming myopic to the value contained within the fundamentals.

 

Look at numerics, sure 5n.com’s are great, but there are now 6n.net’s trading way over the floor of the 5n.com’s. At some point the short gives way to pattern and meaning. It’s something to consider when buying up all the crap in one string of names.  

The Recap

BFBB.net   Start the day off with one of the better dot nets you can buy.  The theme is patterns,  they rule the market right now

Current Price is $282, Lots of B’s or Business

HPQR.com  Officially a CHiP but one of those names we would have all passed on a year ago.  Now its worth $2Kish

1,901 USD,  $1900 ish,

CZFF.com  Same here. FF is the driver. Financial Freedom, or Furry Friend.  As for Z, all I ever have is Zebra

$1,951 (25 Bids) Thought this would get more

06090.com  The pattern is pretty, even with the zeros

$1,075 (57 Bids) Zero’s look good to me, I bet this name was picked up for $19 a year ago.

555170.com  Triple 5 is the driver.  Just not driving very hard, under $100

265 USD, not a bad final price, not sure where the 6n’s are going. I don’t think the 0 affects this one as much in the Future.

08189.com   The zero at the front brings the price down but if it were anything other than a zero or four it would be $5K plus

$1,100 (27 Bids)

BHGGG.com  Triple 5L.com are one of the patterns that are hitting the aftermarket.  And that’s how it starts

$115 (20 Bids) I need to do more 5L research, this seems like it would get a higher price.

BBQO.com   I think this works for both markets.  Chinese are starting to buy the vowels and American keeps eating the BBQ

$313 (16 Bids) This price seems like a good deal for delicious BBQ Ostrich, I’d pay that.  

OCWeed.com  Pretty sure they’re selling weed in Orange County.  One bid

$48 (2 bids), I was the second bid… Make me an offer.

DMMZZ.com  At $12 but pretty sure it won’t stay there

$82 (12 Bids)  

EGBF.com  Western Premium.  Over under $410.  I added the $10 for dramatics.

787 USD, I like to see these types rising. I have a few.

Special Domain Shane ONLY Coupon…….. CODE IS DDCDS2015Good 30% off Discount Domain Club to get the lowest renewal prices Godaddy offers (DDC)

SCPW.com  Domain Holdings is selling.  Or at least trying to sell. All depends on their reserve

unsold

Inbred.com  Tourism site for West Virginia

$2151, not  quite sure how you monetize this one, or what the build is. I can almost see a reality show on the discovery channel.

Interview.net  When the seller tells you its one of his favorite names you are pretty much guaranteed the reserve is going to be high

Unsold

FOR OTHER GREAT NAMES FOR SALE MAKE SURE TO VISIT CAX.COM

NameJet Action

Domain Name / TLD / Status Bidders Time Left High Bid
1495.net Bidders:41 Time Left:3h 16m High Bid:$463
1373.net Bidders:49 Time Left:3h 20m High Bid:$1,600
ll4.com Bidders:46 Time Left:3h 44m High Bid:$1,500
ooon.com Bidders:105 Time Left:3h 47m High Bid:$2,900
buyshares.com Bidders:111 Time Left:4h 2m High Bid:$10,000
2360.com Bidders:148 Time Left:4h 3m High Bid:$23,100
xzx.net Bidders:91 Time Left:4h 4m High Bid:$1,310
11inches.com Bidders:8 Time Left:4h 8m High Bid:$88
trm.com Bidders:170 Time Left:4h 28m High Bid:$55,501
dfmg.com Bidders:91 Time Left:4h 29m High Bid:$2,110
guncraft.com Bidders:47 Time Left:4h 38m High Bid:$252
filmer.com Bidders:93 Time Left:4h 44m High Bid:$2,400
momentofsilence.com Bidders:29 Time Left:5h 0m High Bid:$70
canan.com Bidders:136 Time Left:5h 3m High Bid:$1,800
ipj.net Bidders:72 Time Left:1d 3h High Bid:$540
1565.net Bidders:48 Time Left:1d 5h High Bid:$81
tiii.com Bidders:116 Time Left:1d 5h High Bid:$1,105

 

NameJet Results

49688.com $3,010 12/7/2015
litterbasket.com $69 12/7/2015
jjoo.com $8,000 12/7/2015
dngm.com $1,999 12/7/2015
tpsg.com $5,000 12/7/2015
ozzz.com $3,434 12/7/2015
xyg.net $4,100 12/7/2015
xyc.net $3,800 12/7/2015
sau.com $41,220 12/7/2015
uald.com $250 12/7/2015
pinhole.com RNM 12/7/2015
tszs.com RNM 12/7/2015
5963.net $2,200 12/7/2015
ooog.com $2,500 12/7/2015
temperaturechart.com $69 12/7/2015
urbanheritage.com $231 12/7/2015
livestockquotes.com $69 12/7/2015
statisticssoftware.com $131 12/7/2015
cfcp.com $2,650 12/7/2015
ggg.xyz $5,150 12/1/2015
zyana.com $270 12/1/2015
thedownload.com RNM 12/1/2015
bncf.com $3,101 12/1/2015
cubey.com RNM 12/1/2015
movein.com $12,700 12/1/2015
vow.org $1,209 12/1/2015
dens.com RNM 12/1/2015
mqi.com $25,855 12/1/2015
5310.com $30,200 12/1/2015
addd.com $10,001 12/1/2015
herbaleducation.com $120 12/1/2015
dadm.com RNM 12/1/2015
hungjury.com $199 12/1/2015
debbo.com $198 12/1/2015
futurephones.com $1,011 12/1/2015

 

Recap Quick Overview

DomainPriceEnd DatePlace
BFBB.net$282.00still goingNamePros
Inbred.com$2,151.0012/07/15Flippa
06090.com$1,075 (57 Bids)12/07/15GoDaddy
08189.com$1,100 (27 Bids)12/07/15GoDaddy
CZFF.com$1,951 (25 Bids)12/07/15GoDaddy
BHGGG.com$115 (20 Bids)12/07/15GoDaddy
BBQO.com$313 (16 Bids)12/07/15GoDaddy
OCWeed.com$48 (2 bids)12/07/15GoDaddy
DMMZZ.com$82 (12 Bids)12/07/15GoDaddy
HPQR.com1,901 USD12/07/15GoDaddy
555170.com265 USD12/07/15GoDaddy
88737.com3 days to go12/07/15GoDaddy
EGBF.com787 USD12/07/15GoDaddy
SCPW.comunsoldFlippa
Interview.netunsoldFlippa

Yesterday Reported 4L Chip sales.

 

tpsg.com $5,000.00 12/7/2015 NameJet
cfcp.com $2,650.00 12/7/2015 NameJet
ssyc.com $2,451.00 12/7/2015 Sedo
lcwx.com $2,251.00 12/7/2015 Sedo
nyry.com $2,151.00 12/7/2015 Sedo
rkcy.com $2,150.00 12/7/2015 Sedo
gxzr.com $2,150.00 12/7/2015 Sedo
xkbs.com $2,129.00 12/7/2015 NameJet
dngm.com $1,999.00 12/7/2015 NameJet
hpqr.com $1,901.00 12/7/2015 GoDaddy
tkgy.com $1,900.00 12/7/2015 Sedo
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About the author

I grew a beard while I was on vacation. I had to shave it off to go back to work.

View all articles by Josh E

5 comments

  1. M

    I think your theory and analysis — even as a starting point — is missing a vital thing. Namely, consideration of the cultures involved and their goals in the race for domains. We’re still pretty ignorant when it comes to analyzing what precisely is more attractive to eastern buyers, and more importantly, what qualities new categories might offer.
    Still, interesting analysis.


    1. Post author
      Josh E

      I think that all falls under the “meaning” fundamental. I agree that we’re ignorant on many of the attributes that give meaning to the names, but as we learn, research or just observe, we can overcome that handicap.

  2. BRJ

    In last couple weeks I am able to sell LLL.co, NNNN.co and NNNNN.co (yes I’m talking .co) for $75 to $250 US each that I hand regged for < 10$ in the past 6 months. Multiple buyers interested and some from China. Domains with most interest have no 4 or 0, at least two repeating numbers, pattern (like 123 or 567), and more 8's the better. With letters (LLLL, LLLLL, etc) it's also best to have at least two repeating letters, or a Chinese city/province code (BJ, SH, GD) in the beginning or end. And ofcourse no vowels or V. The longer the domain in .com, or if it's a non-.com, the more you need the above to have more value.
    If you get into NNLL and LLNN, LNNN or NLLL, best to also follow above guide for best value. Repeating numbers/letters and patterns have most value!

  3. BRJ

    Meant to say If you get into NLL and LNN, and NNL or LLN best to also follow above guide for best value. Repeating numbers/letters and patterns have most value!

  4. Trav

    BHGGG.com – $115 on GoDaddy… If it were a drop and in auction on Pheenix or DropCatch, it would go for a lot more. Why are the buyers there not buying on GoDaddy? It makes no sense!

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