SnapNames auctions off a three word domain for $17,750.
An auction for DirectMailMarketing.com has closed for $17,750 at SnapNames. Payment is pending. This is a high price for a three word domain, although “Direct Mail” has pay-per-click bids over $5.00 at Overture.
I’ve often questioned if the bidding frenzy at SnapNames is pushing some domains over market value, although an auction is a good definition of a perfect market. Recent attention to the expired domain market in major publications like The Wall Street Journal has focused mostly on SnapNames.
What makes you question the value of some auctioned domains is the limited number of bidders at the high prices. In the case of DirectMailMarketing.com there were only two bidders once the auction hit $7200. There’s a lot of hubris in this industry and people will bid up domains just for the feel of the victory. What if one of those two bidders had been away today or wasn’t interested in the domain? Then it would have sold for less than half of its final tally.
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