[Reckless2001]

I got this article from other forum, I found it interesting and very informative so I am posting it here. Take some time read it!!



T

he basic idea of an auction is to allow sellers to get the best selling price for their item, as buyers compete with the most they are willing to pay for a certain item. Sellers at prime auction houses, such as Christie's and Sotheby's, realize the intrinsic value of their wares. Buyers also realize the value. However, it is not always the intrinsic value that causes prices and desire to soar, seemingly simultaneously. There's something to be said for the atmosphere created by an auction. It is easy for everyone to get swept up in the excitement. At times bidders find themselves bidding values higher than they originally would like to just to win. Often, bids reach amounts higher than the actual value of an item. Maybe this is just the competitive nature of certain individuals, but no one can deny that excitement in an auction. In the end, sellers receive great prices and buyers get what they really want.

Although some may get caught up in this excitement, the true value of an item is the maximum price one is willing to pay. Auctions weed out low bidders and allow the most interested parties to compete for an item. Auctions are not only beneficial for sellers, but they also benefit buyers by providing them with the opportunity to bid on a certain piece of property where, without the auction, only a small number of potential buyers can negotiate. Auctions are usually publicized and promoted so buyers have the opportunity to find out about certain key items and participate in the chance to purchase.

The founders of eBay also realized a "certain something" was felt in an auction and decided to translate that to the internet. What ensued was a re-birth of auctions, where you could sell anything. All of a sudden, something for everyone could be found in one place. While befitting of the nature of the domain industry, domain name auctions have almost taken a reverse approach, starting first online, then moving to a live auction format. While the most successful domain name auctions don′t feature lawn chairs, signed baseball gloves, or top-notch jewelry, you can always find something to suit your domaining needs, whether it be a particular Top Level Domain (TLD), a certain keyword in demand or a domain name with certain traffic requirements.

There have been a lot more auction platforms popping up in the domain industry, many within the past year. We are all familiar with the live domain auctions at TRAFFIC, however more and more live auctions are occurring every month. In August, Domain Roundtable hosted a live auction. You can also read later on in this newsletter about how Sedo hosted the live domain auction at the Domain Focus Event in London earlier in September. This month, we will be hosting another live auction at the Domain Vermarkter Forum in Germany. Not only are live auction models popular among the domain industry, but more and more companies are offering online auctions in various models. Sedo offers several auction models from marketplace auctions, to premium domain auctions, where some domains are hosted both on Sedo.com and GreatDomains.com.

It is hard to speculate as to the future of live and online domain name auctions. We are quite sure that at least in the near future, things will continue to heat up as participation in auctions increases. It is fun to be in the midst of the excitement, but we recommend checking out a few auctions to see how it all works first. You can follow the latest auctions at Buy, Sell, Appraise and Auction Domain Names at Sedo, the #1 domain name aftermarket, broker, reseller, and appraiser! and check out the premium auctions on GreatDomains – Premium Domain Auctions and Domain Parking Program. Have fun and happy bidding!