What Is a Domain Auction and Is It Right for My Domain?
A domain auction is simply a different way to market and sell a premium domain name. It works best for domains at the higher end. Sometimes these high-end domains are referred to as “super’premium domains” or “trophy domains.”
Generally speaking, there are three main types of domain auctions:
- Public Domain Auctions
- Private Domain Auctions
- Semi-Private Domain Auctions
Public Domain Auctions
A public domain name auction is a lot like buying something on eBay. A domain is listed for sale and publicized. Anyone can bid, and anyone can see what the highest bid at the time is
Benefits of a Public Domain Auction
Public domain auctions are like to have more people paying attention to the auction and more total bidders.
Downside of a Public Domain Auction
The completion rate with successful domain bidders is lower because — for one reason or another — the highest bidder cannot or will not complete the transaction. Although there are some things you can do to pre-qualify domain bidders in a public auction, it is not enough to completely solve the problem. A domain auction that has to be run a second time is generally less successful than the initial one, so there is some additional risk.
Additionally, some of the most qualified bidders often purchase domains strategically as part of a business initiative. Bidding at a public auction might reveal their business plans to competitors.
Private Domain Auctions
In a Private Domain Auction the bidders have been invited or have applied to participate. Only pre-qualified bidders are allowed. The bidders usually do not know who the other bidders are or even how many bidders are participating in the private domain auction. The number of domain bids and the relative amounts are also not revealed. The top bidder is informed only that they have the winning bid and the second-place bidder is informed that they will become the top bidder in the event that the top bidder is unable to complete the transaction.
Benefits of a Private Domain Auction
With a private domain auction is it easier to pre-qualify bidders. This means that the close rate after a winning bid is selected is much better. Private domain auctions rarely have to be rerun and the transaction funding and close usually happen quickly.
Downside of a Private Domain Auction
Semi-Private Domain Auctions
As you might expect, a semi-private domain auction is a middle ground in between the other two. There is still a lot of control over who is invited to bid on the domain, but the domain bidders often know some of most of the information about who and/or how many bidders there are.
Every semi-private domain auction is designed strategically to optimize the return given the attributes of the domain being auctioned, the state of the market at the time, and the anticipated population of domain bidders.
Which Domain Auction Is Right for My Domain?
It requires a thorough review of the domain and objectives of the domain owners to determine if a domain auction is the best way to market and sell a given domain and which kind of auction might be best. We always conduct a confidential consultation before recommending a domain auction.
Brannans.com Domain Auctions
No matter which kind of domain auction is right for your domain strategically, domain auctions are a lot of work and more costly than conventional brokered sales. That means that the requirements to qualify for a managed domain name auction at Brannans.com are more stringent than normal.
In order to be considered for a Brannans.com managed domain auction, the domain must meet all of the following conditions:
- The estimated retail value of the domain must be at least US $200,000.
- The domain must have been registered for twenty years or more.
- The domain must be a .COM TLD.
- The domain must be a single word or a string of letters or numbers consisting of two or three characters.
- We only work directly with the current registrant/owner or their authorized attorney or IP executive (no brokers).
If you believe that you domain qualifies and are considering whether a domain auction is the best way to market and sell your domain asset, use the domain estimator tool link below to verify the value of your domain and contact Brannans.com for a confidential conversation.