If you look at sales generated on Bido since release you may not see the high ticket items you initially wanted to see. For the most part Bido, as today most members are from the domaining community, was released at the worst time possible however, it is for the same reason we’ve built Bido in the first place. Domainers are taking a big hit with PPC revenues and are struggling. While it may seem sales are strong in the marketplace remember most of these, by far, are end-user sales where end-users approached, negotiated and bought. Unlike most sales in the past, these sales are not driven by domainers anymore.

A little history. Let’s look at the dynamics prior to the change, 05/06. Moniker is making waves all over the place with their Targeted Traffic auctions, breaking the 10 million mark in one auction. Seems to be like there’s no end in sight. SnapNames, with their exclusive Network Solutions contract, are making even bigger bucks due to their unique dynamics. On one hand domainers who are making more than ever due to increasing PPC payouts from the major search engines and are looking to increase their domain inventory, traffic, to make more, as well as paying end-user prices as money comes easily. On the other hand, SnapNames has tapped Network Solutions mass reach via WHOIS and their site and are luring end-users to their auctions. Bidding pressure from Domainers, from time to time, is getting end-users to pay even higher. Great dynamics, if it only lasted!

On the other hand, 05/06, Moniker is extremely selective what makes it into their auctions. If that is not enough, the money pool, buyers within Moniker auction, is for the most part limited to what Domainers have to spend. SnapNames does not yet accept aftermarket domains in their platform (when they initially do there was no user adoption for a while), and the rest of the domaining community’s only choice is to list with other sales platforms such as Afternic and Sedo, and wait for the right buyer to come by. With inventories exceeding ten million listings between the two, few get lucky.

Come 07 and PPC payouts are starting to drop, first slowly but towards the end of the year it is all too real. 30% fallout isn’t unreal anymore and in some cases, as we are learning now, it has reached 50% levels.

The few Domainers who drove the market in 05/06 have almost completely vanished. Today they make significantly less however they still invest, but elsewhere. Their picks today are things like Real Estate, Startups, Tech, web development (building their own we properties), stocks, others.

SnapNames sale to Oversee has changed the landscape a bit, as Namejet picked up the contract.

Today, since Domainers have stopped buying (again, for the most part, in comparison), most sales occur because end users are stumbling upon domains they want, usually, via Sedo and Afternic (and BuyDomains).

This is where Bido comes in. We saw most of those issues and thought a better solution was needed, one where users can liquidate inventory when they need to, not waiting for the right buyer to come by, just let the market decide what is right, and live with it, for the good, and the bad. As it is today, Bido is not the perfect place to sell. We have a long way to go, from getting the word out to working on our technologies to accommodate more buyers and sellers. We are well aware of these issues and are working day and night to make things happen quicker. In addition, as I wrote before somewhere on the blog, things do change. What we first envisioned for Bido has changed after release and now our direction has shifted to where we believe we can do a better job, where Bido has a better potential. We will still follow on our plans, but they have now expanded, Bido, as expected, took on a life of its own.

As for the question above, we are extremely happy with Bido, as it has attracted thousands of buyers in a very short time. We got to see, work, and improve our technologies, as well as to continue and build towards our objectives, which are now much broader than what Bido was meant to be initially, by far.

All in all, things are good, could be better, will be better.

And a piece of advice to Domainers, to those who are unsure what to do today. Back in 01 many thought the web was doomed. Few forgot to get the memo, got heavily into the domain business, bet the house, and won big. If you think the web is doomed it is time to stop investing in domains (as Franky says, domains are the internet) however, if you believe in the internet, in advertising on the internet, in the Search industry and in the value of a click, maybe you too should bet the house today?

Some food for thought.

Have a great day,

Sahar

Read the complete post at http://www.conceptualist.com/fedclick.php?ref=http://www.conceptualist.com/2008/08/13/are-we-happy-with-bido/&id=2296