The domain Convergence extended online auction being conducted by Fusu will end on Wednesday October 15th.
There are still some very great deals there for the taking, including ChargerKits.com.
We tested the Zero Reserve idea in this auction with ChargerKits.com, and personally, am not convinced that the Zero Reserve style auction is something that the domain industry should adopt, unless we can get more end users involved in domain auctions.
A domain name will never sell at its true value if the buyer is another domainer. End users who will utilise the domain for a real website will most likely place a higher value on the domain name, than lets say, a domain investor who is just looking for a quick flip.
Zero reserve goes beyond proper business practices. As an accountant, I find it a bit reckless and imprudent to operate a business in a way in which a potential Return On Investment is very unlikely.
We have however already recovered our costs with regards to Chargerkits.com.
To view the auction bidding thread for ChargerKits.com, visit the link below:
http://dc.fusu.com/content/auction-chargerkitscom-167
Kevin
I think your conclusion is faulty because you are lumping all auction platform together.
I think several very good domains sold at the TRAFFIC Moniker live auction, which had no reserve including cleaning.com which went up to $100K.
If the auction platform does not have an outstanding track record I wouldn’t throw up a no reserve domain, but in a proven auction, I don’t think its a bad strategy at all
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Michael,
It is definitely fair to say that all auctions weren’t made equal, so to speak.
Cleaning.com was indeed a huge success. But remember, the seller spent time and money to promote the cleaning.com in many ways before the auction, which included banner adverts and special postings.
Some of the promotions were even unconventional, such as having a woman dressed up as a cleaner with “cleaning.com” printed on one leg, and parading her to the TRAFFIC attendees.
It was a savvy way to promote the domain name, and it paid off. The zero reserve strategy here worked very well, in that it aided the sellers marketing campaign and helped to pull the attention to the domain name which was competing with over 2,000 other domains.
I don’t think all zero reserve auctions can be promoted in the same fashion as cleaning.com. Unless a breakeven sale can be guaranteed, I think it is a bit unwise to employ a zero reserve strategy.
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