Multiple Live Domain Auctions at Traffic Conference: Good, Bad, Or Ugly?

Well I just read that TRAFFIC conference is going to try to hold up to 5 live domain auctions at the New York Traffic conference. Traffic co-founder Rick Schwartz called it  a game changer.

For the first time at any domain show we are going to have multiple live auctions presented by multiple auction houses. This is going to be a game changer!

As is stands now we believe there will be up to 5 different auction companies holding live domain auctions in New York City in September.

Http://RicksBlog.com

Well, it sure is a new thing that no one has tried before and we think TRAFFIC conference deserve credit for that. It is also a game changer, no doubt about that either.

Now what remains to be seen is how multiple live auctions are going to play out for all the stake holders including the domainers. It will lead to some good competition among auctioneers and can lead to relaxation of domain submission rules. Domainers will no doubt like that part. It may also lead to lower fees which is also a welcome sign if it happens.

Now will it make profit for TRAFFIC……most likely it will, as house always takes it’s cut and comes out winner every time. Plus given TRAFFIC founders’ business skills, I doubt they will lose any money on these auctions.

Now will it make profit for the auction houses? I am not so sure given that now they have to relax their rules and probably lower their commission rates to attract better domains than the competition. It will be interesting to see if they make money!

Now the most important question is will it lead to higher domain sale prices than if there was only one live auction instead of 5 live auctions? I am cautiously optimistic. I am little concerned that same group of buyers will now have to follow up to 5 live auctions and it will be hard to concentrate on making your buying decisions, especially if all the live auctions are held at the same time. Additionally, same group of buyers will be chasing too many domains which can also lead to lower sale prices.

Its going to be good fun to watch the results from 5 live auctions and lets see if it helps all the stake holders and lead to more domain sales at higher prices. Does anyone have any inkling on who are the remaining 2 auction houses apart from the already rumored Moniker, TrafficZ, and Sedo.

I will be interested to hear your views about this.

Update: All 5 auction houses are now known for the TRAFFIC New York live auctions. They are Moniker/Oversee, Aftermarket.com/DomainTools/TrafficZ, Sedo, RickLatona.com, Bido.com

Also as per Rick’s post on his blog, the commsions will stay same at 15% and prime domains will be up for auction at very aggressive reserve prices.

Now that brings me back to my original point that 5 different live auctions presented to same audience may not lead to higher domain prices. It may lead to more domain sales at lower prices especially if you factor in the lower reserve prices. A recipe for success or disaster? Only time will tell what exactly happens but we just hope it doesn’t lead to an auction trun-off for domainers who want to submit domains for future live auctions.