I usually don’t like auctions as I end-up spending more than I planned. But sometimes, you just can’t help it. You backorder a domain you really want and guess what, someone else really wants it too. So you basically start battling with the other bidders. I just spent 2k to win a battle.
This is why I love hand regs or fixed prices. You know what you’re paying and that’s it. But auctions are created to make you spend more than you planned. While some people can control their domaining addiction, it’s not easy. It is even harder if it’s a domain that means more to you. Maybe you want it for development or maybe you already have prospects.
This weekend, in the middle of my crazy rush to launch TopDrops.com, I participated at an auction and I’d never think the bidding would go that high. If you asked me earlier, I’d say I wouldn’t go above a few hundred but as I kept getting out bided, I couldn’t resist. I really wanted the domain.
The domain I’m talking about is Directory Script (dot) com, I found it via TopDrops. While, domain doesn’t have huge search volume, it actually made sense for me to spend as much. I didn’t want it for flipping, although, that is a possibility.
But I’ve always wanted to launch a Directory Script as a product of my company. While, there are a few out there, I think, most are out dated or just don’t feet well with my taste. And online directory business is not going to go away, there will always be companies/people trying to launch their own directory in a small niche.
So I decided to spend $2000 and get the domain, this is the most I ever spent for a single domain at an auction. See, this domain is not just a keyword domain, it is a lot more.
- Higher Conversion Rates
- Higher Referral Rates
- Product Category
- Self Marketing
- Type-in Conversion
- Long Term Business model
This is how you create the best brand and business. You take the best domain and combine with a quality product/service and you create a business with self promotion, saving you thousands/millions on marketing costs. A lot of small and big businesses still don’t get this, which is sad. But they will catch-up eventually.
As a domainer, it is important to understand this because if you start acquiring quality category killer domains, you don’t have to be chasing clients to buy your domains.
Although, I didn’t buy this domain to flip it, you can apply the same principles to a domain that you get for flipping. See, I know that this domain is worth high 5 or even 6 figures, and If I wanted to flip it, all I have to do is wait. Even if it takes 5 years, I am sure there will be a company that comes along and buys it. Think about it, one of the top companies in the field charges around $2k or more (depends on the plugins) for a single license of their product. You don’t think the category killer domain is worth the first 100 clients? It is in my book.
Feel free to post some of your recent auction wins with high price tag.