What Will Rio.com sell for at T.R.A.F.F.I.C.?? Win a Ticket to TRAFFIC South Beach 2010

Afternoon Ladies and Gentlemen!


I am on record all over the place stating that 2009 will be a
record year for domain sales. I believe that the conditions will make it
actually blow the doors off of pervious years. We won’t know until January, but
I want to be crystal clear in what I see. I mean BLOW THE DOORS OFF!


Now, as for the TRAFFIC auctions, I was hoping to quietly
look at a couple of domains. Let me be on record as saying there is some major
gem in there. There are some bargains in there. I believe at least one domain
will go for over 7 figures.


What everyone thought would be a lack luster auction in New
York is going to turn into a battle royale. Two good companies each with some
major headlining domains. Like in cards, we are about to see where the power is
in the industry. Not as far as the
auction companies, but as far as the domainers bidding. I think we will walk
away with some real HUGE deals. REAL excitement. Folks will be coming out of
their chairs on a few of the names that will go up. Wanna know why?? Low
reserves = higher selling prices. High reserves scare people off. The auction
process is one that needs to be trusted. The bidding is likely to be the most
active in several years.


I anticipate a battle for Rio.com. That baby is going to fly
over 7 figures. I would imagine this is going to be the single biggest bidding
war we have ever seen for any domain in the history of our auctions. That is
what I see. I don’t think anyone reading this would not value Rio.com higher
than $1M. I expect many folks to be bidding on this. I would advise those interested to team up if they hold any
chance of walking away with this domain.


So what do you say? What will Rio.com go for? The closest guess gets a free ticket to TRAFFIC 2010 in South Beach that we will be announcing in New York. Will be the first one registered for the event.


Have a GREAT Day!
Rick Schwartz





107 thoughts on “What Will Rio.com sell for at T.R.A.F.F.I.C.?? Win a Ticket to TRAFFIC South Beach 2010

  1. cue

    My guess, rio.com will sell for $1,150,000.
    This city is booming with success and opportunity. Oh yeah they also won the Olympics for 2016..

    Reply
  2. Gazzip

    Strange that Rio.com is up for sale, it looks like they are a big and busy business that still use the domain.
    Looking at their website it does’nt sound like they’re closing down either.
    Future
    “RIO networks will out perform our competitors for generations to come.”
    …anyway, my guestimate is $550,000 but I hope it goes for alot more.
    Good Luck

    Reply
  3. Ross

    $377k
    Realistically Brazil.com only sold for $500k so this would obviously be a lesser of the two despite the fact of the Olympics(which in my opinion does not matter at all)

    Reply
  4. Andrew Douglas

    Brazil at $500k was way below it’s true value as the sale was rushed due to it being essentially a forced liquidation. It was also before the selection of Rio for the Olympics. If you think that’s not a big deal, I’m not sure we are on the same planet.
    Rick Latona has already mentioned that they’ve spent months working on getting the right buyers to the table for this auction. I don’t think the sale of Brazil is a good indicator for Rio as they are totally different circumstances.

    Reply
  5. Kevin

    Agree it could be $1Mil, but the market still has a limited amounted of buyers right now willing to go into million dollar land. Plus you can’t ignore the comp of Brazil.com going for only $500k, which sold way off it’s expected value.
    $450,000 would be my guess just slightly under what Brazil went for.

    Reply
  6. Matt Rigney

    $555,000
    The Olympics is a big deal but it only lasts for a few months and people will forget about it fast. Plus it’s 7 years away, a lifetime for some.

    Reply
  7. Anunt

    Rio.com will sell for $250,000
    There will be no bidders in the reserve price range of $300k to $400k…so they will end up lowering the reserve price and end up selling it at $250k.

    Reply
  8. Robbie

    If it sells, I would say $375k, Which I think is cheap for this name but the way the market is, There are only a few big buyers willing to put cash down.
    I hope someone like Hotels.com know about this auction, These are the type of endusers that”Get It” and would help raise the price and turn the domain into a good property.
    Just my thoughts!
    Good Luck to the seller and the Traffic Team.

    Reply
  9. Charley

    >>>> There will be no bidders in the reserve price range of $300k to $400k…so they will end up lowering the reserve price and end up selling it at $250k. <<<< Are you sure, they can lower the reserve price ? I thought it isn't possible after setting a price.

    Reply
  10. Stephen Douglas

    Olympics notwithstanding, Rio.com is a nice 3 letter domain of a popular tourist destination. It will probably sell for about $650,000, with three bidders. (and no, I don’t have any inside info!)

    Reply
  11. Dave Wrixon aka Rubber Duck

    Just goes to show most people are clueless on the value of this domain. Be interesting to see if Rick is one of them.
    Somehow, I doubt it. There is going to a huge rush into assets associated with the BRIC economies and the dollar is likely to go a lot further South. Of course, technically, this is a non-English Domain, so perhaps a new record there as well.
    Anyway Good Luck with the sale!

    Reply
  12. Sc

    $1,000,010
    I agree with Rick that this is a big one. Maybe over 2 mil. Anyone that gets it for under 1 mil is getting a great deal.

    Reply
  13. AlanR

    I know of at least 10 people in the domain industry who have the wisdom to see the long term value and the money to bid this up to at least $3 million. And if you figure in the half dozen or so endusers who could be there seeing the bidding frenzy, then this name could go well beyond my original estimate of $3.6 million. Whether I’m right or wrong, I’m shocked by all the low estimates which tells me there aren’t a lot of people in this business who have the insight to see the future. Yeah, the reality is the low prices we have seen but the future for the internet gets stronger everyday. Too many short term thinkers in this world!

    Reply
  14. Kevin

    @ AlanR
    I’m almost always an optimist, but this year I became a realist.
    No one in domaining would bid Rio.com to $3 Million unless they were intoxicated at the time. LOL
    Look at the comps for the year so far. You can count the million dollar sales on 1 1/2 hands.
    It’s not a matter of being a short term thinker either. It’s the reality that no domain investor is willing to pay an astronomical price for a domain asset acquisition right now unless it’s something beyond beyond beyond incredible. And Rio.com is not that.
    The only way Rio could go into 7 figs would be if a South American billionaire shows up and bids. You would need that kind of”price is no object” buyer where it’s a prestige purchase and not a business purchase. Then yes it could go into the mils.

    Reply
  15. AlanR

    Kevin
    First, $3 million is pocket change for a lot of people. People pay $3 million for houses and property all day long around the world and it’s no big deal. Most of the time, there is no publicity involved with those sales so I can’t believe that it would be difficult to understand why someone would pay $3 million for Rio.com when it has so much more potential than buying a house or piece of property for that amount. Yes, the majority of people don’t get how important domains are but there are enough people in this industry who get it. And as you and I know, people have spent over a million for a domain and got laughed at but got the last laugh! Now with the Olympics coming, then the potential is even greater and after the Olympics, the potential will be as strong as ever since Rio is the best known and simplest term of one of the most popular, largest cities in Brazil and South America. If you are a long term thinker, then comps don’t mean anything and if the buyer is smart, then he/she could make their return in a year or two. Most investments can’t compare to the returns of great domains! So whether you think Rio.com is an incredible name or not, it is still worth over $3 million in relation to any other business investment out there for the return.

    Reply
  16. Kevin

    @ Alan
    Alan,
    $3 Million isn’t looked at as”pocket change” to anyone anymore. Even the wealthiest people on the planet are being more careful, hesistant and prudent than ever in their investments.
    Potential? You could buy Brazil.com for $500,000 and save the other $2.5 Mil for advertising and marketing vs paying $3 Million for Rio.com.
    What exactly is the potential you’re speaking of anyway? Do you know how much capital you need to really take a domain to the major leagues of development. I assure you it’s way more than a couple mil needed to do things in a big way.
    Make their return in a year after paying $3 Million for just the domain???? Sorry but the real world just doesn’t work that way. Ask anyone who has bought a million dollar domain.
    And no Rio is not worth $3 Million and not even close to that.

    Reply
  17. Kevin

    @ Alan
    I should clarify my statemnt in the respect that I’m referring to Rio.com as a stand alone domain. I have no idea what the current business that is on the domain is worth and I’m assuming that is not going to be included as part of the sale.

    Reply
  18. Coniston

    @ AlanR , 99% of the people at Traffic and all domain auctions are resellers, domainers, domainer/developers etc
    Rio has possibility it could get to 7 figs IF there was a true enduser in the room, which i doubt there will be, THEN for any auction to explode you need TWO endusers, or people with deep pockets that want it
    my prediction is $350,000 top whack imho
    in the right hands the name can make a mint, but there are only a handful of people that can make the sort of requisite money from this domain. specialist travel agents, or the brasilian government/ tourist office. there are also ridiculous wipo decisions going on all over too, so people are really worried about that. yes i know its geo etc, but we all know wipo is corrupt and retarded

    Reply
  19. AlanR

    Kevin,
    I think if the media gets wind of this auction in the wake of the announcement of Rio hosting the Olympic games in 2016, then I would think that CNN or others might start covering this and also might be at the auction doing a play by play on this one.

    Reply
  20. AlanR

    Coniston,
    I could be way off base but we will soon see. There have been a number of domains not as good as Rio.com sell for over $3 million but of course, most of the buyers were endusers. Assuming that most bidders will be domainers, then yes, this domain could go for low price but I think that if there is any publicity in the media about this sale, then it could fetch a high price. There are some very savvy people in the domain industry who are putting more money and time into development now instead of just collecting domains so I doubt anyone of them would let this domain go for less than $3 million. Whether this domain has a ROI in one year or not, I’m sure by 2016, it would have paid for itself several times over at that price. As a lot of us already know, how many investments out there can give you an ROI like domains can?

    Reply
  21. Kevin

    @ AlanR
    Could be. I’ve been hearing rumors Howard Cossell might even pop down to do the play by play on this big one.
    :)

    Reply
  22. jr

    Man, those old posts from the YNOT/NP days take me back. Rick’s posts were so inspirational to me at the time and the ring of truth in them was self-evident. If you weren’t around at the time, what’s interesting besides the vision is the bravery…those posts weren’t in a vacuum.
    There were believers, as all of us here would be, but there were detractors as well and Rick knew they would be responding with their typical stupidity. As history would have it, a majority
    of them are now flipping burgers..

    Reply
  23. Iain Taylor

    My guess is that it will go for $2.5m
    It will be interesting to see how this values as we have a very large range in opinions on value, from $nil to $3.6m – clearly we all apply a different context when assigning value, that is what makes this an interesting industry…

    Reply
  24. Ross

    @Andrew Douglas
    “Brazil at $500k was way below it’s true value as the sale was rushed due to it being essentially a forced liquidation. It was also before the selection of Rio for the Olympics. If you think that’s not a big deal, I’m not sure we are on the same planet.
    Rick Latona has already mentioned that they’ve spent months working on getting the right buyers to the table for this auction. I don’t think the sale of Brazil is a good indicator for Rio as they are totally different circumstances.”
    I think you miss the reasoning and the boat on valuation of this domain name.
    Past sales, especially, recent ones play a big part in how much someone is going to pay or willing to pay for a certain name. Considering that Brazil.com sold for 500K regardless of what the circumstances were, that was the price it sold for. Now also taking in to consideration that”rio de janeiro” is in BRAZIL you have to knock the name down a couple of notches. Also on top of that”Rio” is not even the ‘official’ name of the city, rather a short version. Its like calling”United States of America””America”.
    Now putting all this together even taking in the recent decision of ‘Rio de Janeiro’ as the chosen Olympic stage in the 2016 plus the nature of a three LETTER domain, you still can NOT trump Brazil.com.
    This sale is like buying ‘MexicoCity.com’ over ‘Mexico.com’ it is simply going to be worth less.

    Reply
  25. Rick Schwartz

    Voting is now closed. I am amazed at some of the low ball numbers. This domain will fly today. It is # 16 on the auction list so we will know fairly early.
    Happy Bidding!!

    Reply
  26. Troy

    “$450,000 would be my guess just slightly under what Brazil went for.”
    I looks like Kevin with Big Ticket Domains won this one. Congrats. I guessed a couple hundred thousand too high. Better than all these million + guesses though.

    Reply

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