2) prerelease auctions. These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains. Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name. Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site. So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"
Hi I totally agree with you Domaineer42. My partner and I are web developers and are seeing a lot of ‘hype’ selling and not enough ‘real value’ selling based on actual search engine criteria. Recently brokers have knocked back selling domains with great potential value based on some pie-in-the-sky logic, defying even Estibot values we’re told to use. The domains were not our best but with four figure value, according to Estibot, I thought it was a great start as a newbie to domaining. In an industry which should flourish, some of these domain ‘fashionistas’ are making rods for their own backs by devaluing domains that have REAL potential value based on customer search. I don’t understand what is going on, but I have decided to opt out for awhile. We have quite a few domains in our repository, with data backed search criteria, trending upwards. Will bring them out of the closet when the industry is ready to get real.
There’s an important distinction to make here between domain flipping and website flipping. The latter mainly refers to buying and selling full websites. By full websites, I mean websites that actually have content and more often than not have traffic and revenue. When buying and selling websites, the domain name matters less as the main value there is the content, traffic, revenue, history/reputation, sustainability and growth opportunities. The same can’t be said for domain names where you’re just selling “the name” and hence it’s all that really matters.