domains Don't Overpay for Domain Names: The Importance of Patience in Domaining

[Robbie]

We’ve all been there. You’re scrolling through domain drops and auctions, feeling a little discouraged because it’s been a slow week. Then, you see a promising name with a nice ending that’s expiring that day. Since you haven’t bought much lately, you start convincing yourself that the name is better than it actually is. You get into a bidding war with another buyer, and before you know it, you’ve “won” the auction for 5x or 10x more than you originally planned to spend.

Read the full post on Robbies Blog:

https://robbiesblog.com/dont-overpay-for-domain-names-the-importance-of-patience-in-domaining/12802

 

[Arslan Nawaz]

Well said. This is right this happened to me too. There must be budget for acquisition of domain even more precisely there should budget for 4L, brandable etc etc etc.

 

[bmugford]

Being able to walk away when the deal doesn't make sense is a vital aspect of domain investing.

Brad

 

[Robbie]

100% agree Brad, you need to know when to say no.

 

[forge]

The "unspoken" other layer to this problem are the rollbacks (thanks to cheats and schemers) occurring en masse at Godaddy auctions with impunity, as discussed in another NP thread which petered out around Christmas, yet the scamming continues unabated.

Not only is this causing nasty surprises for unwitting bidders, but likely it is negatively impacting aftermarket prices in a broader sense.

Crickets.

 

[bmugford]

Being able to walk away when the deal doesn't make sense is a vital aspect of domain investing.

Brad

At the same time "overpaying" is subjective.

Overpaying for normal inventory type domains can quickly put you in a deep hole.

Is it something super unique that doesn't come up often? I tend to be more flexible with price ranges on those type of domains.

But even then, there is a point to walk away. I try to take the emotions out of bidding.

Brad

 

[homebuyer]

At the same time "overpaying" is subjective.

Overpaying for normal inventory type domains can quickly put you in a deep hole.

Is it something super unique that doesn't come up often? I tend to be more flexible with price ranges on those type of domains.

But even then, there is a point to walk away. I try to take the emotions out of bidding.

Brad

I follow Kenny Rogers' metrics, which include:

You've got to know when to hold 'em
Know when to fold 'em
Know when to walk away
And know when to run
You never count your money
When you're sittin' at the table
There'll be time enough for countin'
When the dealin's done

 

[equity78]

The "unspoken" other layer to this problem are the rollbacks (thanks to cheats and schemers) occurring en masse at Godaddy auctions with impunity, as discussed in another NP thread which petered out around Christmas, yet the scamming continues unabated.

Not only is this causing nasty surprises for unwitting bidders, but likely it is negatively impacting aftermarket prices in a broader sense.

Crickets.

That's the biggest factor I agree. People really don't know what's going on in the GoDaddy wholesale ecosystem.

 

[Arslan Nawaz]

That's the biggest factor I agree. People really don't know what's going on in the GoDaddy wholesale ecosystem.

Please educate us about GoDaddy wholesale ecosystem.

 

[biggie]

At the same time "overpaying" is subjective.

Hi

yeah, i agree

if it's worth it, i'll go the extra mile

imo...

 

[equity78]

Please educate us about GoDaddy wholesale ecosystem.

Well @Michael has done a good job of highlighting and @bmugford has also been pointing out the games being played at auctions. The wild bidding that leads to non paying and then rollbacks. Things like https://www.domainblog.com/2023/09/11/thats-one-heck-of-a-rollback-20250-to-15/

So a new investor might think the going rate for a certain kind of name is x but if there are a lot of games being played it makes it harder to rely on the data.

 

[.X.]

Set the limit, that does not mean don't go over your evaluation limit, so, Set the Limits -Plural ... there is no winning when overpaying for a domain, if you over pay at auction, deduct that amount from your future profit right away.

If you know you can flip a domain fairly quickly, then some overpaying might be justified. not to much though, you will still be losing money ..

there are to many domains out there, to be losing ANY money IMO