The domain name Ringtones.com recently sold on Namejet.com for a disappointing US $105,000. The reserve price was fixed at $100,000. There were total 218 bidders took part in the bidding process. A bidder with user id “easydomains” won the auction with a bid of US$105, 000.
It is to mention here that Rengtones.com was sold at Sedo for a staggering US $750, 000 back in 2010. The domain as appraised by Estibot has an estimated value of $909, 000. The seller’s identity at Namejet is not disclosed. After its first sale on Sedo the domain exchanged hands two more times before the recent sale at Namejet.com.
There were 218 bidders for the domain, out of which as many as 212 bidders dropped out when the domain reached a bid price of $20, 000. The remaining six bidders bid for the rest of auction. It is very clear that someone in its sales history has incurred heavy loss. The low sale has been attributed to rapid technological change that has taken place in communication technology industry.
The low sale figure holds an important lesson for domainers. While buying a highly valued domain, you must look into the future prospects. This is more so when the domain is technology related. Unless the ringtone industry witnesses innovation in near future, the value of ringtones.com will further going to depreciate. The same happened to CDnow.com – a technology that is obsolete now.
The domainer community has expressed shock at the paltry sales figure of Ringtone.com. Some feel the domain should have fetched at least $300, 000 considering its great sales history. There are others who feel the domain has lost it value owing to technological change and has no more value than $1000.
Personally, I strongly feel that the ringtone market is still alive outside North America market. Ringtone marked died not just because of technological change and development but also because of heavy crackdown by FBI to protect Intellectual Property Rights (IPR) of the producers/inventors. The current buyer of the domain can easily recover the cost if he develops the domain and turn it into a business.
So, what are the lessons learnt from sales of Ringtones.com?
- Take future into consideration while buying a domain.
- When buzz is picking up, sell the domain. Don’t wait for long.
- Develop the domain into a website and cash in from current demand before time makes it obsolete.
- Buy high priced domain only if it has a permanent relevance.