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March 17, 2007

Comments

Jlw

I do not quite get it, didn't Global Domain Exchange try this already?

I know it is just a sketch of their system, but where is the incentive to deal through the system, as opposed to fragmented marketplaces -- after all both the NYSE and NASDAQ are dealing with the effects of the ECNs.

I see this as something that will largely benefit fabulous. (as they will get whatever maintance fee).

Everyone else will place lower rates on the domain itself and undercut the marketplace cost by the price of the commission.

Don't know, just a first read of it.

Gabe

Interesting. From what it sounds like, it looks like domains will start to become more "liquid" assets with real "comps" (comparables) - which can only help justify domains being classified as commodities.

The increase in transparency with comps is very important for the growth of domain values. Currently, we have services such as DNSalePrice.com and NameBio.com to use to search past sales but of course, they only get a fraction of the total sales feeds on the secondary market which leaves room inconsistent valuations. According to Frank and this new system, secondary sales will less of a closed door policy and more translucent for everyone to know. More data, means less inconsistencies in price valuations which is a catalyst for a stable and thriving market.

Based on this I think you'll have more domain financing companies come to market that will offer better rates and terms, knowing that they can use the comps as evidence of the collateral...and if the borrower goes into default, the lien holder will have standard platform to sell the domain to recoup their investment.

More financing options means more competition, which should lead to better loan terms for borrowers:

1. Better rates
2. Longer loan terms
3. More lenience in down payment requirements

If these three things happen, you'll see a dramatic increase in sales prices with more leverage buying - you don't have the money to buy that $100K domain outright...no problem...just put $20K down now and pay monthly payments for the next 10 years.

This will be great for domainers with already solid portfolios but if this shakes out like this, it'll be harder for the little guys to still find great deals from weak secondary holders.

Only time will tell...thanks for the heads up Frank!

***FS*** Thanks for writing the other half of the post I should have written Gabe.. You are absolutely correct. The only spot I differ is: "This will be great for domainers with already solid portfolios but if this shakes out like this, it'll be harder for the little guys to still find great deals from weak secondary holders." onesey twosey name holders who's names are active with their rar and not expiring won't necessarily be in this system. You have to opt in to it as it was explained to me. I think this is a great idea.. long overdue.

Rob Sequin

Imagine when one site combines all the domains listed for sale at Fabulous, Name Media, Sedo, Afternic, TDNAM along with RSS feeds from the for sale pages at ebay, DN Forum, DomainStates and NamePros.

If a domain is listed in multiple places then maybe there would be a direct link to each marketplace listing page and the buyer can make his/her decision on where to buy from.

Can't be that hard to do.

Now that's a marketplace!

owen frager

That's not the only great new invention Fabulous came up with last month. Four letters doubled revenue... an idea so brilliant in it's simplicity I'm not sure THEY even understand the significance of what they've done. Thanks guys!

Riq Ghafoor

Thanks for sharing the info Frank; you've been doing an amazing job in helping many "domainer wanabees" like myself to learn the ropes.

One question: Is this new cetralized system by Fabulous already in place or in the works? Where one can get further info/updates on this since their site does not seem to have reference to it yet?

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