Industry Specific Domain Auctions
The T.R.A.F.F.I.C. New York live auctions ended yesterday with modest results. The Rick Latona auction had a net of $1,295,000 (including the sale of geodomain Rio.com for $450,000) and the Moniker auction generated $415,000 in domain sales (NY.biz $7000, MultiVitamins.com $45,000, I.biz $17,000, TrademarkLawyers.com $24,000).
The relative turnout was small leaving one to ask “What’s the next stage in the evolution of domain name auctions”?
Earlier this year, Moniker participated in a very innovative approach by partnering with real estate auction company, J.P. King, in a San Francisco event aimed at selling a large portfolio of real estate domain names. The auction preparation and marketing appeared to be very well done. However, the auction was cancelled due to lack of interest by the real estate industry. This was a result of the auction portfolio consisting of only lower-tier long tail domains like HoustonRealEstateListings.com.
It’s time to take a new approach. Instead of hosting a pure domainer conference with domainer topics, take an industry-specific auction to the National Realtors Conference & Expo or the National Insurance Conference … where true end-users with community-based businesses will be located.
Such an auction would contain only geo-targeted and generic domains names which tightly fit that industry’s niche. The auction would contain quality domains at a range of price points and would cover geo-locations such that professionals from all over the U.S. (or Canada) would see relevant domain names specific to their business and their city. In other words, the name selection and pricing would be very enticing.
The marketing of this auction event would occur months in advance and coincide with the larger conference’s promotion such that they too can publicize the auction. 5% of all sales would be given to the larger industry association such that they retain a vested financial interest in the auction’s promotion & success. There would be 2-3 good quality domains raffled off to increase attendee interest.
Local media coverage would be actively pursued. But most importantly, a direct mail would be sent to everyone registered for the conference, and in that mail a link to the auction inventory which would be posted & updated regularly so that people don’t have to guess what domains will be offered.
Any domain auction is ALWAYS about the quality of the names and to a lesser though significant extent, the price. The most important thing moving forward for major auction venues & events is to narrow the selection down to include only quality domain names.
Buzz, excitement, interest, and commitment-to-buying are built upon enthusiastic want or need for a domain asset that makes sense to a company wanting to expand their internet reach. Placing 10 high-quality domains alongside 200 low-quality domains is a losing strategy. Most buyers will not waste time browsing through a dime store when they are in search of a jewel. Particularly when it comes to business.
High-profile, high-standard auctions looking to attract quality clientele must avoid the bargain basement mentality & approach. And that begins with inventory. Don’t try to sell a 1974 AMC Pacer to Ferrari, Lamborghini, or even Ford Taurus buyers.
