Million Dollar Domain Auction on Horizon?
Craig Harrison is selling a portfolio of 2,600 real estate domain names, many of which contain a city name + RealEstateListings.com. The auction is scheduled to take place on Thursday in San Francisco and is being run by JP King Auction Company.I’ve seen quite a bit of paid press on the auction, and I also read an article this morning on a technology website geared towards real estate professionals.
In an article on Inman.com, WAV Group partner Victor Lund said,
Lund estimates that each of Harrison’s domain names could be worth anywhere from $100 to $5,000, depending on the demographics of the city name and the amount of traffic and advertising it gets today.
That’s a pretty wide range — it works out to between $260,000 and $13 million — but Lund said he’s willing to bet the entire package sells in the low- to mid-millions, depending on the buyer and whether the domains are sold in pieces or together.
Also quoted in the article is Brett Young, a real estate broker and software developer who said,
“This really is nothing more than a publicity stunt that falls short for anyone who has any knowledge about domains. I pity the person who sees this as a good investment.”
I would personally much rather spend the thousands of dollars (or even millions that was quoted by Lund) on one great quality generic domain name than on 2,600 lower quality domain names. In annual renewal fees alone, 2,600 domain names would cost close to $20,000 – and that’s at a discounted rate. This doesn’t include hosting, setting up, SEO-ing, and managing all of these websites, which would cost quite a bit of money up front.
What do you think will happen with this auction? They certainly have spent quite a bit of money promoting it considering all of the press releases and paid articles I read (including DNN). Because of the amount of press they have bought and generated for this auction, I am interested to see what will happen.
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