Could this be the grand finale of the Jeff Baron domain saga? As covered last year by TheDomains in a post titled “He Once Had Over 1 Million Domains & Made $1.5 Million A Month, Now This Domainer is On The Verge Of Losing It All”. It appears the last of the domain portfolio owned by Baron’s Ondova Limited Company will be up for sale in a court ordered domain sale.
By visiting CourtOrderedDomainSale.com you will learn that two portfolios of so called ‘premium’ domain names will be up for auction on November 9th in downtown Dallas, Texas. There are two portfolios up for sale. According to the website the portfolios breakdown like this:
3,000 premium domain names
Average net revenue from 9/30/11 – 10/1/2012 $119 per domain
Total net revenue (same dates) $399k (approximate)
153,000 domain names
Average net revenue from 9/30/11 – 10/1/2012 $3.80 per domain
Total net revenue (same dates) $581k (approximate)
Despite the sale breaking down the domains into two portfolios, from what I understand the auction is for both portfolios. There is a $500,000 cash deposit required to qualify for bidding. Only those that have put forth the deposit and sign an NDA will have access to the full list of domain names being auctioned off. The auction organizers have set forth a minimum bid amount of $4.3 million. Speculators commenting in the most recent TheDomains post on the auction divulge some of the names they believe will be part of the auction which includes many solid one word .coms but also a lot of typo/TM type names.
Assuming you must bid to buy both portfolios, the renewals on all 156k domains would be approximately $1.25 million with annual net revenue equaling only $980k. If you can bid to buy the portfolios separately, portfolio A would be much more attractive with revenue bringing in 20x annual renewal fees. Also, portfolio A is labelled ‘premium’ by auction organizers. Portfolio B simply labelled ‘domain names’ would cost more that $1.2m in yearly renewals and bring in only approx $581k annually.
Honestly, I think this whole auction is ridiculous. How can you expect anyone in their right mind to put down half a million before even seeing a list of names they would be bidding on? I am concluding that Portfolio B is a bunch of typo/TM .coms that are no longer earning as much in PPC as years past and have no resale value. If you are committed to bidding on both portfolios there would be no upside to participating in this auction.