TBR Drop - May 29, 2024 (5.Viewing)

Nafti said:
I believe we’re going to see a nice 5 figure price for this one: Just a matter of how much into 5 figures it will go. Any predictions?
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If some powerful end users get involved, it could go really high. $65K? $100K? More?

If it's only us scummy resellers.. definitely less.
 
however i made that bid days ago as part of the pre-tbr order process. they just probably seeded the auction with the high bid from the pre-tbr bids/orders at 3:05pm

i just know that’s what i had bid days ago to place my order.
 
rlm said:
however i made that bid days ago as part of the pre-tbr order process. they just probably seeded the auction with the high bid from the pre-tbr bids/orders at 3:05pm
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That makes the most sense and probably why the domain ended up at grape.

Not as many of us using grape so odds of getting the domain there are better because there are less bidders.

I can see rlm's logic
 
well odds didn't really have anything to do with it from my perspective. low odds or high odds, I was going to take a shot at it everywhere. Clearly it would have been a bargain even at $2K, so it was kind of a no brainer to start at least there from my perspective. I also had no delusions that I might actually get it at that price, i knew there would be other bidders because grape was no longer flying under the radar, and that their auctions are open, so there's no chance of getting a lucky bargain.
 
Unless a company plans on naming their cannabis company CBD. I can’t see the return from this investment. The traffic will be very mediocre and the majority of your traffic won’t convert for many different reasons. So truthfully any reseller paying 10K for this domain won’t see any kind of a return for a very long time. If ever.
 
theinvestor said:
Unless a company plans on naming their cannabis company CBD. I can’t see the return from this investment.
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Agreed, but people get stars in their eyes when they see "CBD" and think they'll resell it for a million! Like you said, in order to sell any domain for serious money (especially a .CA) it needs to be a CORE BRAND and no one in the biz is going to use CBD as their primary brand name. And if a non-related company used CBD as their acronym, no way they pay the "pot premium" incorporated into the price.

Then again, it makes sense to spend 5-figures if you're a CBD-related company awash in profits that just wants it for promo and can write it off under advertising. Done deal.
 
I disagree, if that domain sells for under 15k someone is getting a bargain and in 5-6 years everyone will say they cannot believe you own that domain.

CBD is not going away, it's potential is still being unlocked.
 
MapleDots said:
I disagree, if that domain sells for under 15k someone is getting a bargain and in 5-6 years everyone will say they cannot believe you own that domain.
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That's the problem, at that $15K buy price and the inherently high, ROI-driven retail price will ensure that you will still own it in 5-6 years. :oops:

At a 2% STR the break-even would be $750K the first year (not counting taxes) and while might drop to $400K-$600K over the years, it's still a massive amount to ask.

https://www.namepros.com/blog/the-minimum-domain-price-for-profitability.1313195/

* Obviously change the first 'o' to an 'r'.
 
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Well unless the domain is put to use by someone who is an authority on it, I doubt it paying dividends at $15K or higher in today's market. I am fully aware of the potential it has but seems like someone is going to burn up a lot of cash to acquire it. Hope it does not turn out to be another of those 2Char domain TBR auction story which I am aware of the laments that followed it's acquisition.
 
I hope a CBD-related company does buy it and put it to use, as that way there can be no possible regrets from an overzealous investor.
 
DomainRecap said:
That's the problem, at that $15K buy price and the inherently high, ROI-driven retail price will ensure that you will still own it in 5-6 years. :oops:

At a 2% STR the break-even would be $750K the first year (not counting taxes) and while might drop to $400K-$600K over the years, it's still a massive amount to ask.

https://www.namepoos.com/blog/the-minimum-domain-price-for-profitability.1313195/

* Obviously change the first 'o' to an 'r'.
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I disagree with this math... break even after 5 years shouldn't be more than $100k imo. If you hold it for 5 years and it doesn't sell, you would have paid $15,050 for an asset that you could surely offload quickly for at least $5k (even if the CBD industry dies the acronym is still great). So you would have spent a max of $10k for a 10% chance to sell it (2% STR x 5 years).
 
clarkemarketing said:
I disagree with this math... break even after 5 years shouldn't be more than $100k imo. If you hold it for 5 years and it doesn't sell, you would have paid $15,050 for an asset that you could surely offload quickly for at least $5k (even if the CBD industry dies the acronym is still great). So you would have spent a max of $10k for a 10% chance to sell it (2% STR x 5 years).
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Can recover the amount easily, but the expectation of domain investors is nothing less than 50X. That is what would be hard to get at that level. To recoup the cost, it will not be a worry at all.
 
The math is a bit off….but I do think the longer it takes to sell the domain the bigger your loss in the future of holding on to an asset that really is not appreciating until you sell.

That’s the domain business and that’s one of the reasons you see some sales to end users at very low prices. There is no guarantee any of these domain purchases will result in a sale.
 
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theinvestor said:
That’s the domain business and that’s one of the reasons you see some sales to end users at very low prices. There is no guarantee any of these domain purchases will result in a sale.
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Exactly, and my numbers are assuming you don't want to lose money on your entire portfolio and the statement that the owner will still have it in their possession in 5-6 years.

You can buy domains for $15K and, assuming an industry standard 1-2% STR, but if you continually sell them for much less than those numbers, then you will lose money in the long run. And the numbers in the NP article assumed a very generous 3% STR.

Domain math absolutely annihilates the vast majority of investors, and most of them don't even realize it.
 
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MapleDots said:
Agreed, just one example

Central business district - Wikipedia
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But as I said, these non-CBD companies with CBD as an acronym will almost certainly not pay the inherent "pot premium" that CBD.ca will entail. Look at some recent LLL.ca sales and see if they line up with expectations of a 6-figure sale.

IOW, the wholesale price of CBD.ca will be very high based on the CBD marketplace expectations, making it virtually impossible to resell to a non-CBD entity.
 
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