It’s a question I’ve had many times and I don’t think anyone has put together the data (or even could) to answer it. Would the same domain name sell for more in an expired domain auction vs a regular domain auction? My thinking is, yes – expired domains sell for more. This afternoon, Josh Reason commented about this issue on Twitter:
In his Tweet, Josh cites a UI issue as the cause of this…and while I agree, it would be great for Go Daddy to update the UI here, I think the issue goes much deeper.
I have always felt that it goes down to the way that people (well Domainers – who are people too BTW!) think about an expired domain auction. When you see an expired domain, you know that someone has let the domain expire and the name will sell to the highest bidder. Something about that, psychologically (and maybe a little factually too) makes me feel like I have a better chance of getting a good deal.
With a regular domain auction, while the domain owner could start at $10 and go from there, I usually find a starting point that in my mind often makes it easy for auctions to go from wholesale to resale pricing quickly…or in some cases they’re just starting at a retail price.
As investors, we have to all buy at wholesale otherwise if you really need liquidity later on down the road you’ll find yourself selling at a loss. Still, going back to the psychology of expired domain auctions – I’m not sure if it’s just me that feels like there is a greater opportunity in expired auctions or if that’s something other people feel as well. I know that my buying activity has been pretty laser-focused on expired domains for years and it’s pretty rare for me to look at public domain auctions from other investors…I’ve kinda written those off.
So now is where I’d like to hear from you and I think it’s a good discussion for us to have. Do expired domains sell for more than public auctions? If so, do you agree with my theory or do you have one of your own?
I want to hear from you, comment and let your voice be heard!