Domain Spotlight:

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

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 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 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 Not Met $11,500 SOLD $9,775 SOLD $20,000 SOLD $1,840 SOLD Not Met $7,475 SOLD $27,600 SOLD Not Met $115,000 SOLD $10,350 SOLD Not Met Not Met Not Met Not Met Not Met Not Met Not Met Not Met Not Met $575,000 SOLD Not Met
Portfolio of (84) three letter .net domain names Not Met and (sold together) $4,600 SOLD Not Met Not Met $172,500 SOLD $18,400 SOLD $10,925 SOLD

Sales Totals from

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2 Replies to “I Feel the Buyers Premium May Have Hurt The Latest Auction At Heritage Auctions”

  1. 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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