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Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
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New
Domain Sales, Financing & Analysis Tools from
CAX.com, Zenscrow & Sedo Show Industry Innovation Is
Alive and Well
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On
Wednesday
I
told you about the innovative new domain
acquisition and management platform at Protrada.com.
In recent weeks I've seen the debut of several
other new services that are offering interesting
new approaches to domain sales, financing &
leasingand market analysis.
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With
respect to domain sales, Francois
Carrillo, who runs the popular
domain news aggregation site, Domaining.com,
has come with a novel twist to
encourage more bidding at his domain
sales site CAX.com.
It allows those who list names for sale
there to offer cash bonuses to
those who get the bidding going, whether
or not they end up winning the
auction. |
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For
example, the seller could offer 10% of
the final sales price to the first person
to bid in an auction. If a name sells
for say $500, that first bidder would
get $50 even if they didn't win the
auction. If they end up being the
only bidder and win the auction, they
still get that 10% - so if they bid $500
and no one else bids, they get the $50
due them taken off the sales price,
reducing it to $450.
The
seller can offer incentives in a number
of other ways too. For example they
could offer 5% to the first bidder and
5% to the person who places the 2nd
highest bid in the auction (giving the
person who is nosed out at the end some
compensation for making it a race which,
of course, generates a bigger sale for
the domain owner). You can find more details
on the system, including the measures
that are taken to prevent shill bidding
at Carrillo's Everytime.com.
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Another
new service, Zenscrow.com,
offers a new way to facilitate seller
financed domain sales
(through monthly payments) and domain
lease agreements. |
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Zenscrow
Founder Adam Paddock
said, "We see the secondary
market as a place where prices
are well outside the reach of
most buyers, including corporate
end users. There is a great need
for financing to enable deals
to close, but current
financing options have been
plagued with restrictions and
high interest rates. Seller
financing or leasing is a great
solution as the seller and buyer
directly determine the finance
terms, but there are security
issues and the process of
entering into these types of
transactions can be complex. We
created Zenscrow to solve those
issues."
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To
do this, Paddock said
Zenscrow monitors the
way buyers use a domain
while making monthly
payments to the seller.
"During the finance
or lease term the domain
is held in escrow with Escrow.com
or NeuLaw.com
and the buyer is given
full use of the domain.
Zenscrow's patent
pending process
constantly reviews the
buyer’s development
and use of the domain to
prevent trademark or
copyright infringement, Google
penalties, or other
misuses that can cause
devaluation,"
Paddock said. "If
an |
Image:
renjith
krishnan / FreeDigitalPhotos.net |
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issue
is found, the buyer is
notified and provided
with a chance to make a
correction. If he fails
to do so he loses his
right to use the domain
while making
payments." |
To
simplify the process, Zenscrow
handles all other aspects of
seller financed domain sales and
domain leases including the
creation of a sale or lease
agreement, assisting with
domain transfers, and managing
scheduled monthly payments
between buyers and sellers.
Paddock added that for a limited
time Zenscrow is also offering a
free brokerage service
where a Zenscrow agent will
negotiate a seller financed
domain sale or domain lease on
behalf of a buyer or
seller.
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Sedo
announced another cool
innovation this week - the
industry’s domain price index
(IDNX)
for the secondary domain marketplace. The index offers domain name managers and investors unique insight into fluctuations in the domain name market.
FoxBusiness.com
even wondered if the new
Sedo tool could predict
the next recession! |
The
IDNX was developed by Berlin-based economist and internet entrepreneur,
Thies Lindenthal, and uses Sedo’s current and historical sales figures
data (more than 200,000
transactions), going back over the last six years. From this data,
Sedo said the IDNX can provide domain investors with
critical insight into the current market value of domains, as well as highlighting domain industry trends to help determine the true value of their domains.
By comparing domain sales trends
against mainstream business
metrics, the IDNX also highlights the
connections between the online and offline economy, showing that domain prices have a clear economic foundation.
For example, the index shows a strong correlation between the domain name market and standard economic indicators, including changes in the NASDAQ 100 index
and the stock prices of internet giant
Google. Despite a big
decline in parking revenues, the
IDNX indicates domain name
values climbed to an all-time high in
May 2011.
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Sedo
CEO Tim Schumacher
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Sedo
CEO Tim Schumacher said,
"Lindenthal’s extensive research on domain pricing validates the domain name market and shows that domain markets are not a fantasy land where dreamers trade esoteric goods at imaginary prices. Domainers who use the insights IDNX offers and ancillary domain pricing tools to set fair and fixed prices on their domain names, ultimately help make our industry more valued and respected. In turn, this will continue to positively impact domain name sales.”
If
you want to learn more
about the IDNX,
Schumacher and Lindenthal will be hosting a
free webinar on August
23, 2011 to provide a broad overview of the tool, and best practices on how domain investors can use the tool to make the best domain buying decisions.
You can register
for that event here. |
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(Posted July
15, 2011)
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For
all current Lowdown posts - Go
Here
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We need your help to keep giving
domainers The
Lowdown, so please email [email protected]
with any interesting information you might have. If possible,
include the source of your information so we can check it out (for
example a URL if you read it in a forum or on a site
elsewhere).
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