I Feel the Buyers Premium May Have Hurt The Latest Auction At Heritage Auctions

Feb 09 2015

Heritage Auction just ended their latest auction and in my opinion,  the types of names that were up for sale this time around were too liquid of names.  Names that could have easily been sold elsewhere for much less commission.   This is not to take away from the hard work of Aaron and everyone at HA.  They are trying to overcome a few obstacles that are going to be difficult.  One, the buyers premium.  Accepted in the art world, but hurt final sales prices in the domain world.  Two, Namejet has had a steady supply of exactly the same type of LLL.coms recently.

Take out the LLL.coms that could have achieved the same results or higher on any platform, and the LL.com that most likely could have been sold for the same or higher through Andrew Rosener and Media Options, and your total sales from the auction are $343,364 with 8 names sold.   Granted the other names count, and HA gets the commission, but they were easy sales.  The prices were not bad but I do think there was money left on the table.  How can it not be when NL.com had $172,000 in commission (correct me if I’m wrong but buyer and seller each paid 15%).   HA is on the right track.  It was wise to put an auction full of names that were a slam dunk.  What they really need to do is sell names in auction that bring new price levels.  New buyers into the market.  I think they have made progress on the later but the prices have some room to grow on the first.   But Aaron knows what he is doing and this auction is part of progress, not a finale.  The results are below

Domain Name Price Reserve
DiscountLuxury.com Not Met
Boho.com $11,500 SOLD
IGV.com $9,775 SOLD
Frisco.com $20,000 SOLD
MoneyBlog.com $1,840 SOLD
Import.com Not Met
NottingHill.com $7,475 SOLD
SIE.com $27,600 SOLD
Luxe.com Not Met
8.co $115,000 SOLD
Arts.org $10,350 SOLD
Stock.market Not Met
SmartWatches.com Not Met
Mouse.com Not Met
INZ.com Not Met
Corn.com Not Met
VMR.com Not Met
Quick.com Not Met
PXA.com Not Met
Future.com Not Met
NL.com $575,000 SOLD
Arcade.com Not Met
Portfolio of (84) three letter .net domain names Not Met
NYC.am and NYC.fm (sold together) $4,600 SOLD
NYC.lawyer Not Met
GXM.com Not Met
Classic.com $172,500 SOLD
ZIC.com $18,400 SOLD
QDE.com $10,925 SOLD

Sales Totals from OnlineDomain.com

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Outsmarting the Dumb, Outworking the Smart

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2 comments

  1. Donny

    Yes I would have to agree.

    The buyers premium for something you can’t touch is going to be very hard to overcome. This works for barrett jackson’s auto auction but with domain names it will pretty tough.

    I compare it to asking a buyer of a new home to pay an additional 10% of the asking price to the seller. He is trying something new so will have to give him credit for that.

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