Originally posted by Beachie
BD is averaging $2k+ per day on domains - that's 80 reusable WLSubscriptions per day. How are you going to compete with that?
Let's say that every day they buy 80+ subscriptions. If the names don't drop they simply reuse the WLS. They will scoop up WLS's many months in advance of the drops, because they can afford to. I would say 10 names per day are worth catching (ignoring traffic names), so every day they buy 8 days worth of WLS's. Now throw in UltSearch, who will fill in the gaps.
Your ability to get a good name will be zero, unless you take a gamble and buy a WLS long before the domain drops. Of course, most don't drop, so you will waste your money.
This is very correct Beachie.
If BD averages $2k/day on domains, like you said,that is about 80 REUSABLE snaps. If they continue this pace for one month, they have 2400 WLS subscriptions. After one year they have 29,200 WLS subsriptions.
As they start, no doubt they will put WLS on expiring good names. As time progresses, they will use all of their WLS on the good names. With 29,400 WLS in their back pocket, and all of the good names covered for the next day /week / month / 6 months - they will then begin to put WLS on the mediocre names. As more time progresses, they will then virtually have a monopoly on the WLS market. This doesnot factor in the other large players - just BD.
If you thnk you cannot get a name now, wait until then. It will be worse with WLS. Sure in the begining it will be alright for the small players, but you have to take off your blinders and get rid of your tunnel vision. Successful business models look long-term. Look at this situation in the long-term. It is bleak is WLS happens.
One other point: WLS will certianly not put BD or ULT out of business. It is quite the contrary and will almost ensure that they have a virtual monopoly over the dropping names market. If the competitive bidding system stays, then BD and ULT might get caught up in the frenzy and have to shell out 4-5 figures for ONE name. If they have the WLS on the name for a mere $24, how will this put then out of business? If I were BD, I would be ALL for WLS. It will only ensure their monopoly in the dropping name market over the long-term. By forcing the big players to shell out more $$ for the good names means that they will have to limit their expenditures on other names -
THUS INCREASING THE ODDS SMALL PLAYERS CAN GET GOOD NAMES. If they can lock up names for $24 with a WLS, small players will be removed from the game. . .
-Bob