Domain name auctions occur throughout the year in various online formats, and less frequently in LIVE versions in which domain conference attendees bid against each other with paddles in response to a live auctioneer.

Domain name auctions are both an opportunity and a risk. You must weigh the pros and cons before submitting a domain for auction consideration. Be sure to understand the contract which you will be required to accept as part of the auction submission agreement. Some terms in an auction contract border on unacceptable, and can significantly diminish your rights (and revenue) as a domain owner.

Here are some potential drawbacks to be aware of in submitting your domains for an auction:

1. LIVE + Silent (or extended) auctions often will not provide you the option of specifying whether your domain will be placed in the LIVE part of the auction or the extended (non-live auction). You may only want your domain name to be considered for the LIVE auction. It is OK to ask for this guarantee up front. The auction house may or may not agree to this. The risk is in having your high-quality domain stuck in the “silent auction” where there is much less visibility and publicity. 

Furthermore, the auction house will ask for reserves that are very low in order to effect a sale (to insure their commission) thus placing entrants at risk of losing a valuable domain in a relatively low traffic auction where your good domain can be sniped cheaply in the final minute of a so-called “silent auction”. Once the domain is sniped cheaply (because you set the reserve too low), then you are contractually obligated to sell it. This is not a good result or feeling!

2. Auction contracts used to require 180 day (or 120 day) exclusivity in which any sale of the domain (even through your own outside efforts) resulted in you paying the auction house their commission. This contract length was far too long, abusive, and terribly lopsided in favor of the auction house and against the domain owner. It actually rewarded the auction house for YOUR WORK instead of their own.

Today’s contracts have been pruned down to 60 days which is more reasonable. I know of many premium domain owners (myself included) who simply refused to submit their domains under a 180 day contract. Historically, this resulted in LIVE auctions receiving lots of lower tier domain names which ultimately received no bids in the auction. This hurt the live auction format for several years because premium domain owners would not submit their domains under such terribly abusive contract terms.

Additionally in regard to auction contracts, look for 60 days maximum length, but also for a 6o day contract that expires automatically. In this instance, you are automatically released from the contract at the end of the 60 day term. If the auction house hasn’t facilitated a sale by then, they’re not going to and should be entitled to nothing. And you should be able to pursue all of your other options without any obligation to pay the auction house a commission.

To illustrate just how exploitive some auction houses could be, they would require the 180 day exclusive contract. But if your domain did not sell at their auction, they still wanted you to pay them a commission even if you sold your domain 4 months later to a buyer you found on your own. Terrible! Not only that, but the 180 day contract would auto-renew locking you in for another 180 days ( in a perpetual cycle of obligation to them). The auction house would be doing nothing to effect a sale during this time period. But they wanted to be paid anyway should the domain sell through your other efforts. Unbelievable.

Rick Latona’s contract, which I recently reviewed, is much better offering a 60-day term that expires automatically. And Latona is known for taking more active marketing efforts than about any other auction house. So Rick is setting a new standard for fairness and demonstrating a more balanced approach to brokerage than any other auction house or brokerage that I am aware of.

3. Auction reserves are a hugely important consideration. Auction staff are famous for saying “Lower your reserve because it will generate more bidder excitement”. This is smoke & mirrors, and a somewhat disingenuous statement that when properly interpreted reads “Lower your reserve because we want to insure that we make money off of your domain no matter what, even if it sells cheap”. Be very careful here.

It’s up to you to arrive at a realistic valuation of your domain name. Be sure to carefully choose the reserve price because there is a very high likelihood that the domain will be sold at that minimum price. The auction house only want to churn sales as quickly as possible, and will not necessarily be a reliable estimator of a domain name’s worth. They are strictly advocating for their own commission. Flip the domain, get the commission, move on to the next. That is their primary interest.

In many cases, a dedicated domain broker with a tiered commission arrangement is a much better option for selling a premium domain name. This will result in a much more targeted marketing approach that is superior to the mass auction house format.

On the good side, having your domain in a LIVE auction can lead to a good sale. Be aware that most all domain conference auctions are predominantly domainer-to-domainer sales. So volume pricing and volume commission are the default fall back strategy for most domain conference auctions. I expect this to improve gradually as the concentric circle of domaining continues to widen.

Domain Auctions domain auction, domain name auction

Lockheed Martin is the world’s largest defense contractor famous for manufacturing fighter jets, rockets, radar systems, and a wealth of high technology products in use around the globe.

The company is operating off of websites at Lockheed.info and Lockheed.com. Actually, the .com site is LockheedMartin.com and Lockheed.com forwards to that whereas Lockheed.info is a self-standing site on its own. Some of the links there track back to the LockheedMartin.com site particularly in regard to the jobs availability page.

The .info and .com sites appear to mirror each other. Lockheed Martin have also registered variations on their name in the .US, .biz, and .mobi extensions. Most likely to prevent trademark infringement by cybersquatters.

However, it is nice to see a multi-billion dollar global corporation actually using the .info version of their company name. Afilias.info are the official registry and overseer of the .info web address which currently totals 5,595,978 domain name registrations worldwide.

.INFO Domain Names .info, airliners, lockheed

The local FOX news TV affiliate in Seattle Washington, Q13 FOX, has created an online business directory at Q13fox.biz. The main station website is still Q13fox.com and contains the typically expected pictures and story links characteristic of most news sites.

The Q13 Fox business site (.biz) lists a number of “Biz Categories”. Each category provides a list of local companies and their contact information in the traditional online biz directory format. Local vendors can also display an ad for their products and services in the classifieds section.

Also on the Q13fox.biz website along the top is a “Biz Search” box which yields fast results if you prefer to search specifically for a company as opposed to browsing business listings. A few other links include local business coupons for discounts on services. Movies, Events, News, and Weather are additional links to round out a viewer’s choices.

.BIZ is an excellent business-oriented extension, and in this instance nicely compliments the Q13 primary news website. Based on steady growth with the .biz web address, I suspect we will see an increasing number of companies and professionals utilizing the internet’s official business domain, .BIZ.

FOX Seattle are following close on the heels of the recent launch of Overstock’s .biz website at O.BIZ.

.BIZ Domain Names .biz, business, corporate

City domain names and state domain names are among my favorite internet properties. Dan Pulcrano of Boulevards New Media hit the gold mine in the 1990’s acquiring many .com city domain names in advance of the eventual dissolution of print media.

Boulevard’s portfolio of city domains is simply stunning, and the collective value almost priceless. Examples of their properties …

Following some years later came the official releases of .info (information), .biz (business), and .US (United States) domain name extensions. The competition was global and intense for city domain names in these addresses. Many individuals and companies had “seen the light”, and recognized the incredible opportunity before them.

A parallel story which was unfolding alongside the domain name evolution was the unraveling of traditional newspapers and print media. Many newspapers did not understand that their own demise was at hand. In short, their print advertising plummeted. Moreover, newspapers failed to grab the brass ring … which was to acquire a pure city domain name and to adequately position themselves for the internet future.

There were exceptions, however. The Charlotte Observer obtained Charlotte.com, The Boston Globe acquired Boston.com, and the former Knight Ridder Publishing (who owned the Miami Herald) captured Miami.com. All good moves.

Further illustrating the current emergency underway with print newspapers in America is the recent bankruptcy declaration of the Denver Post. They are the 13th newspaper bankruptcy filing by a U.S. newspaper publisher in only 13 months. Read about it here.

Menius Enterprises worked diligently beginning in year 2001 to acquire a number of high value geo domain properties, including: Charlotte.US, Detroit.US, Portland.US, California.biz, Miami.biz, NewOrleans.biz, NorthCarolina.info, Indiana.info, and Sacramento.info. Since then, we have sold a number of pure geo domain names and geo-targeted domains.

Morris Communications (based in Augusta, Georgia) obtained cities such as Nashville.biz, Cleveland.biz, and StLouis.biz.

City domain names are rare and have few substitutes. They appeal to a large clientele yielding relevance for local residents, both local and global businesses, and international travelers to the area. Cities have their own unique personality. And a timeless, enduring quality.

Geodomains city domain names, geo domains, geodomain

Within the past year, two distinctive companies have emerged who specialize in online domain name auctions. One is Latona’s Domain Brokerage & Auction House and the other is Bido. Both companies have invested considerable capital and time in constructing a sophisticated auction platform dedicated to domain name sales.

I am happy to say that both company sites are very professional in appearance. Both are a definite plus to the domain name industry.

Rick Latona of Latona’s Domain Brokerage & Auction House is a go-getter, energetic, and someone who makes things happen through sheer will and creativity.

Sahar Sarid, Jeff Bhavnanie, and Jarred Cohen are the primary driving forces behind Bido and they too have created an impressive auction format full of features.

The domain name industry is inextricably linked to internet growth and the mass migration of businesses to the net. While the story of domain name expansion is both interesting and exciting, many chapters have yet to be written.

The domain aftermarket has many players, some new and some old. I have used most all of them for both buying and selling premium domain names in various extensions. It is gratifying to see the industry mature, and to witness the continual influence that good domain names have on start-ups and business expansion.

Bido have been in operation for a number of months and are continually reassessing and improving their technology and approach. Latona’s is brand new and preparing to launch within the next few days.

If you are a buyer or seller of domain names, check out these two companies. Chances are you will be hearing about them for a long time to come.

Internet Domains bido, Domain Auctions, Latona

There is a new link in the upper left corner of this site entitled “Domain Names For Sale“. Currently listed on this new page is a sampling of our domain names from the Menius Enterprises portfolio. Many of these are geo city and state domains in leading web addresses.

This domain listing page will gradually expand to include new domain name additions, special domain name groupings, and sets of geo targeted domain names in the common business verticals such as hotels, real estate, legal services, employment/jobs, and the healthcare industry.

Interested parties can click through to any domain name’s developed website or go directly to a pricing and information page that will provide additional details about the domain name. Inquiries and proposals can be sent through a contact form on each domain information page.

Client inquiries may cover any range of possibilities including …

• a request to buy or lease a domain name or grouping of domains
• partnership requests, or
• business development proposals

When attempting to contact Menius Enterprises about our internet properties, please leave a detailed message describing the exact nature of the call, a contact person’s name and phone number.

Domain Names For Sale

2009 was a relatively good year for the domain name industry compared to the rest of the economy. Domainers still re-evaluated their portfolios and trimmed their domain name collections. This was partly driven by declining PPC revenues as companies scaled back their advertising expenditures.

The USA faces a number of challenges in order to get the economy rolling again. Internet growth will somewhat coincide with the larger economy’s movement. And internet growth is the central mechanism pushing the adoption and use of domain names as business portals.

Two of the most prominent drags on economic recovery have been: 1. lack of job creation, and 2. a pervasive fear that massive commercial real estate defaults would re-ignite another financial crisis and meltdown.

On the positive side, recent news points to indications that the feared commercial real estate meltdown may actually be more manageable than was predicted. The Wall Street Journal has published an article quoting Morgan Stanley analysts who suggest that commercial real estate concerns are now …

only a moderate headwind for the economy,

Another article by Reuters further supports this contention quoting a top Federal Reserve official who says …

Community and regional banks can probably manage their exposure to souring commercial real estate loans.

These sentiments suggest that some of Wall Street’s apprehension is being replaced by a more clear view of America’s financial health. However, the last ingredient in a full recovery is the much needed expansion of America’s manufacturing base.

Jobs, jobs, jobs is indeed the cliche’ of the day. But more than that, they are the true driving force behind a robust economy. To some extent, domain name utilization and further internet assimilation will likely move forward regardless of the immediate job situation.

Many companies have survived this economic recession, and they will be preparing themselves to push their products and services out to the online global consumer. That means having a quality internet presence … which will be part of strategy 101 for 2010 and beyond.

Internet Domains advertising, domain names

Domain name sales have always driven widespread interest in the domain name industry. No one knows when the first domain sale occurred, but it foreshadowed a vibrant market that was to emerge in the years ahead.

Novices should be informed that there is not one, singular market that represents all domain transactions. Most people are aware of Sedo and Afternic sales as well as those documented in Ron Jackson’s DNJournal. However, many sales are undisclosed and never become publicly known due to privacy & non disclosure agreements.

There are reasons why domain sales privacy is fundamental to good business. A buyer does not want others in the marketplace to know what he has paid, or can pay, for future acquisitions. And a seller does not want others to know the level of proceeds received from a sale because that seller often reinvests those proceeds into more purchases.

Publicly disclosed sales information can weaken future negotiations for both buyers and sellers. So “smart money” typically operate outside the public’s radar and prefer to keep quiet their most strategic moves and acquisitions.

This phenomenon greatly impacts public perception of domain sales and creates the somewhat false impression that all aftermarket sales are known. They are not.

Many people try to extrapolate domain trends from known sales data, but they are always operating somewhat in the dark since so many total domain name sales are never made public.

Domain Sales, Internet Domains Domain Sales, nda, non disclosure