Mike Mann on Sedo .CO Auction
As you may or may not be aware, many of the domain names in yesterday’s .CO domain auction held at Sedo are owned by legendary domain investor, Mike Mann. Mike was the founder of Buy Domains, which he sold to NameMedia, and he currently operates DomainMarket.com. He remains the largest non-institutional shareholder in NameMedia, and he is an active philanthropist with Grassroots.org.
Aside from Sedo and perhaps the .CO Registry, Mike and his company had the most on the line with this auction. I asked him for some comments on it, and he was kind enough to reply.
“The domain auction space has always been a joke, one can buy 100,000 underpriced dotcoms at DomainMarket.com for $350 each without auctioning a thing; and the name will get transferred almost immediately at no charge.
If one wanted a real domain auction in this illiquid, poorly understood, occasionally fraudulent space it could only include the very best names, at the very best prices and be promoted heavily to the outside world. This is in fact what is represented in the winning domains of the .co auction, however its not clear if the incredibly good final prices had domainer buyers, or the outside world actually bought.
In general the outside world does not want to speculate in domains and if they did it would be .com 95% of the time if they were smart. (Its scarier than buying futures on Wall Street) And because the more people develop other TLDs, the more valuable the brand and traffic will be at the same dotcom. And dotcom super premium domains are almost a sure thing over time if they are as underpriced as they are now. Buy the very very best .Co and .Net and .Us, etc, but 95% of the time buy up all the best dotcoms if you want a future payout.
1. Smart people got fantastic bargains on auction:
2. Music.co $30,000 USD
3. Shop.co $22,000 USD
4. Love.co $20,000 USD
5. CreditCard.co $17,000 USD
6. Pizza.co $15,000 USD
7. Download.co $10,099 USD
8. Vodka.co $10,000 USD
9. Soccer.co $5,000 USD
10. Recipes.co $5,600 USD
11. MP3.co $3,350 EUR ($4,557 USD)
12. Touchscreen.co $800 USD
13. Distributors.co $250 USD
I think all those sales above are about 20% of what the names “should” be worth to a corporation who needs them in context, discounted to todays value. If they were .com they would be worth 100 times that, too big of a margin, should be about a 20 times spread
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