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    Auctions and Domain Names - Questions and Answers:

    History and Types of Auction:

    History of Auctions.

    Auction is derived from the Latin word augeo meaning; I Increase. Recordings of auctions can be found in Babylon 500 B.C. where annual auctions of women to be sold for the purpose of marriage, were held. Auctions were also held in Roman Times to dispose of bankrupt individuals assets and also to dispose of slaves and equipment bequeathed from the spoils of war, the auctions were often held where a soldier would drive a spear into the ground marking a place of battle.

    Auctions in the sense that we imagine an auction to be involving bids and bidders in an auction house, were first recorded in Stockholm; 1674. It was not until 1774 that the auction house Sotheby's; of London was founded. Today Sotherbys is the second-largest auction house in the world. Christie's the largest auction house in the world was founded 2 years later in 1766.


    Types of Auction:

    Candle Auctions.

    There are few records of auctions for the exchange of goods, from Roman times until Candle Auctions were mentioned in the records of the House of Lords in 1641. Candle auctions, were primarily used to sell ships. The auctions were held in candle light, with the end of the auction being denoted by the candle burning out. Whoever placed the last bid before the candle burned out won the bid.

    Ascending Price Auction.

    When one thinks of an auction in the traditional sense; it implies a sale room where individuals bid for items that are for sale, called the auction house, with the auctioneer, taking bids from bidders, the price ascends and when the auctioneer thinks the price is at its highest level.

    He will then shout out "Going once, going twice, and i'm selling now", BANG goes his gabble. "Sold to the Lady at the back, in the red dress"; who is joyously smiling as she holds up her number. These are Open Ascending Price Auctions or English Auctions. involving bidders openly placing bids with each subsequent bid raising the price. The auction ends when the bidders are not willing to bid any further.

    Ascending Price Auctions On Line.

    The rapid rise of the internet has allowed bidders the ability to bid at an auction house without having to be there or have a representative present to make bids on their behalf, the bidder can sit at home in front of a computer, with a cup of tea and submit their bids electronically for the items for sale in the auctions. This does bring a much wider audience to the auction house, and obviously helps to increase the amount of bids coming into the auction.

    All Pay Auctions.

    With an all pay auction all bidders have to pay the amount of their bid and the final sale price is much lower than at a traditional ascending price auction. However all bidders have to pay the amount of their bid, therefore compensating the -seller for the reduced sale price.

    A Buy Out Auction.

    With a buyout auction, a price know as the buyout price is generally set by the seller, the buyout price can be accepted by the bidders at any time during the auction, if the buyout price is not achieved the highest bidder wins the auction. There are 2 types of buyout auction, a temporary and a permanent, with the latter the buyout price remains for the duration of the auction and with the former the option to buy out is only available after the first bid has been placed.

    A Bidding Fee or Penny Auction.

    A bidding fee auction is similar to an all pay auction, where you are required to pay for your bids, the auction is also known as a penny auction because the bidders bid a penny higher than the current bid, also like an all pay auction the lower sale price of items means the bidder pays less than at an ascending auction, and the seller generally receives more money at the sale because of the bid money collected from each bidder.

    Auctions on the Television.

    Television programmes involving Auction Houses are becoming extremely popular and it would appear that the television has gone Auction Crazy. We have programs involving homes, antiques and repaired items to proceeds of crime and left over storage items, to include celebrities, celebrity dealers and members of the public making deals and going to Auction. Here are some of the daytime offerings from the BBC:

    On Line Auctions.

    On line auctions have made it possible to sell items without the need for an auction house, you simply take a picture, set your prices, upload and wait for your bids to come in. Although the price of items at auction will ascend with each successive bid. They will not be sold on the day of the auction, as is the case with an Open Ascending Price Auction within an auction house, the auction will generally last for 7 to 28 days or until the item is sold. Also it is the seller not the auctioneer, who accepts or declines bids. On line Auctions have been going on for a very long time as early as 1978, when items were sold on bulletin boards.

    On Line Domain Auctions.

    An on line domain auction is where you can search; bid for, and buy premium domain names which are for sale. Unfortunately: Unless you are connected within the industry, or actively search for domains which have not been re registered you will have to actively look through all the domain names available at such sites. However the process can take a lot of time.

    There are over 330 million top-level domains registered of which 115 million are dot com's, to simply view the domains at a rate of 60 a minute, it would take 5,500,000 minutes, 91,666 hours, 3,819 days, 545 weeks, about 10 years, with no sleep, food, drink or toilet time, so lets say it would realistically take you 30 years. Impractical at the very least.



    Premium Domain Names - Questions and Answers:

    What are Premium Domain Names ?

    The dictionary definition of the word Premium is a sum added to an ordinary price or charge. There are also implications of grandeur, impressiveness and high rank attached to the word. However both Catford Ferrets Club .com and Hotel .com are Premium Domain Names. When you register your domain name with a domain names registrar, it becomes a Premium Domain Name. A name ceases to be a premium domain name, when the registrant of the name lapses with the yearly renewal payment for the domain. Domain name ideas become premium domain names when they are registered with a domain name registrar.

    Domain Name Registration:

    Even though there are tremendous differences with the sale price of premium domains from ten pounds to 1.1 billion for market leaders like hotels.com. They are all domains which are classified as Premium Domain Names. All domains on a domain names auction website; like this one, are premium domains because they have been registered with a domain names registrar. They are no longer an idea. Once registered they can be used to promote a business / organization or be put up for sale on a domains auction website.

    The Pricing and Ranking of Premium Domain Names.

    Although faiugraq.com and Hotels .com are both classified as premium domain names. It may appear a little unbalanced at first glance, because the use of the word premium, implies high rank and value are attached, to the domain, this is the case with Hotels.com - but not the case with faiugraq .com - Hotels.com was sold for 1.1 billion and is one of the highest ranking premium domains within the domain name industry. faiugraq.com is worthless and has no ranking. But both are classified as premium domain names.

    Premium Domain Classification:

    However: Forgetting the incorrect use of the word Premium as a classification for domain names that have been registered, it is necessary for things to belong to a classification, without it we would be unable to search for items on the internet. We also need sub classifications so we can be more specific. If you are looking for Music, you will google music, but if you want Rock Music you would generally search for Rock Music.

    Domain Name has many sub classifications, each of which will produce different search results.

    On Line Valuations of Premium Domain Names:

    There will always be discrepancies between different domain auctions & valuers when estimating the value of premium domains. The same name will be valued at £8 from one valuer, £20,000 from another. I have also noticed considerable variations with a names auction valuation and what they actually achieve at auctions. Names that I though were very good, were being auctioned and sold at prices considerably lower than their worth, and visa versa, names I thought were absolute rubbish were being auctioned at very high prices.

    When valuing domain names a valuation web site will use a computer algorithm which bases its valuation on, the amount of letters and if the domains contain words that are in the dictionary, it cannot base its valuation on market trends, how memorable or pronounceable the domains are, or if they are market leader like hotels.com. Hotels.com will return a value of $116,042.96; however it sold for $1.1 billion. In a nutshell especially with brand domains, premium domain names are worth what someone is willing to pay, for what someone is willing to pay, is what the domain name is worth.

    Spam Sites and Spidering:

    One should also realize that many domain valuation websites are created by spammers who have spidered the web, copying the meta title and description details of webpages to create a webpage using such meta data. Which procures listings on search engines. Luring you onto their page. The webpage has adverts, dangling a carrot, to get your email address. My domain names have many listings on such sites, all my domain names which have a website redirect page and therefore mata data are valued at $8.87 with a daily site revenue of $0.15. Very strange: All my domains are on a redirect to this site, which has no adverts or advertising revenue. I do think it would be rather mischievous to lure the spammers to a page called hotel.com, hoping it would be copied to joyously fabricate a webpage listing of hotel.com, with a value of $8.87 and a site revenue of $0.15.

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