OnlineDomain.com Domain Name News & Opinions
Sedo announced the brokered sale of the domain name Partners.com for $125,000 USD.
The domain was first registered in 1993. The seller is Domain Capital that bought the domain name in 2006 for $130,000 in a sale brokered by Moniker. Whois has not yet been updated so the buyer is not yet known.
So the domain was sold at a $5,000 loss. But Sedo’s fee is another 15% or $18,750. So the total loss for the seller is $23,750. That is quite a loss for such premium domain name. Would you have sold this domain name for a loss? I wouldn’t.
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When I saw the name sell, it looked to cheap, well funded company, if they had a way of finding a bigger buyer they would have, maybe made some cash via parking all those years, a shame to sell such a great name for a loss.
I don’t think they made 24K USD with parking in 7 years.
I would have not sold this high quality domain at a loss. It was a bargain for the buyer.
I’d only sell at a loss if I had something better to put the funds into. They might have made some money with the domain after they bought it (eg: parking), so hard to know what the real loss/gain was.
The domaining game is SO unpredictable. It requires a degree of micro-management that can drive the best analyst bonkers. There are very, very few that can succeed at that game. If you don’t have financial backing, good luck. The profit margin for flipping is so small and speculative. And let’s face it, it makes no sense to hold onto domains in such a change-a-day techno industry. Just the existence of apps has put a dent into the domain market. Better have the best of the best, and even that doesn’t always help ie partners.com.
The biggest fallacy is that human behaviour can keep up with technological changes. Nothing could be further from the truth. Trying to bank on probability.with large scale domain portfolios has many pitfalls. If you are not Frank Schilling, Mike Berkens or the like,, good luck. Mathematical infinity is a nice concept, but has little value in the actual domain market space. This is the problem a lot of sceculators are having. It can be likened to the amount of currency being printed relative to the amount of natural resources. There is no correlation these days. Thus there is no correlation between domain portfolio and what people are willing to buy.
Could have leased it out for better option…….
If you can lose five figures on a one-word .COM (parking income unknown), then it does say something about the speculative nature of domain investments. Yes, this is only one example but…
Mistakes happen. Someone approved a poor deal.