DomainMart, a leading provider of domain-name secondary-market services, today
introduced two new domain-name auction services: a sealed-bid auction and a
reciprocal buy-sell bid auction.
The sealed-bid auction, when used prudently, allows sellers to realize a higher
sale price for their domain names than with current auction services. The
reciprocal buy-sell bid auction benefits both buyer and seller by simplifying
the bidding process to yield a fair exchange price. DomainMart is the first to
provide such auction services for domain names.
Ã¢â‚¬Å“If the seller of a domain name believes that multi-bidders are likely to
overestimate each otherÃ¢â‚¬â„¢s maximum bid, she would be better off using a sealed
bid-auction than an English auction, popularized by eBay,Ã¢â‚¬Â says Alex Tajirian,
President and CEO of DomainMart. Conversely, when the seller believes that the
bidders will underestimate each otherÃ¢â‚¬â„¢s maximum bid, the English auction is
superior, adds Tajirian.
Tajirian also points out that a sealed-bid auction can be superior to one-on-one
negotiations if a potential buyer is unaware that he is the sole bidder.
Under a sealed-bid auction, each interested buyer submits a bid without knowing
who else is bidding or how much. The winner is the highest bidder and the domain
name is sold at the highest bid price. Using a slight variation (known as
Vickery auction), the price paid by the winner (with the highest bid) is that of
the second-highest bid.
Sealed-bid auctions are widely used by investment banks.
A reciprocal buy-sell bid auction is appropriate and expedient when each of two
domain-name owners wants to own both names. For example, each of the owners of
supplementary domain names, like AuctionDomain.com and DomainAuction.com,
prefers to own both so as to decrease customer confusion. Using the reciprocal
buy-sell bid auction, one of the owners designates a price for which she would
either buy or sell at, and the other owner chooses which side of the deal he
wants. For example, one announces $10,000, and the other says at that price he
will buy it.
Confusion over supplementary domain names can also arise when customers arenÃ¢â‚¬â„¢t
sure of the extension of the domain name — whether the site they seek is .com
or .org, for example.
These services complement several that DomainMart already offers:
1. Providing an appraisal for a domain name to aid a bidder in establishing a
reserve price, i.e., the minimum price the seller would accept. An appraisal
also reduces price uncertainty for the buyer, resulting in making informed
2. Giving advice and participating in determining the best auction type to use
and the best negotiation strategy.
3. Acting as an independent third party to set up and monitor the auction.
4. Assisting in reducing risk and uncertainty associated with the escrow and
DomainMart is a leader in providing domain-name secondary-market services,
including appraisal/valuation, auction, escrow and ownership transfer, leasing,
parking, management, and protection since 1996.
Tom Saito, Marketing Specialist
Tel: +1 (415) 905-4234