The Rape of iReit
April 4th, 2008Recently, I reported that iReit has been liquidating many of their domain names. As it turns out what appeared to be a mistake, has turned into a disaster. Today Afternic reported some of the domain sales from iReit that have already gone through.
Say.org - $500
WJA.com - $735
ZLI.com - $500
PQT.com - $571
RLU.com - $900
Gut.org - $500
LLJ.com - $603
The sales absolutely are mind boggeling. It appears just at first glance that five - 3 letter .com’s sold for a total of just over $3,300. Based on an initial glance, these domain names were worth at least $7,000 each and RLU and LLJ would’ve have fetched more than 10,000 each. Based on my evaluations just within these few domain sales, iReit lost about $35,000-40,000 dollars.
Justin
They probably hired MBAs who are completely incompetent but look good on paper just like a lot of other publicly traded companies. Is there a way to find out what names they own and are selling off at afternic??
thanks,
Gotta love the BIO
Comment by christian — April 4, 2008 @ 12:56 pm
I just lost any hope of investing in this publicly traded company!
I’ll make more reselling my two new .ORGs you posted.
Comment by Etab — April 4, 2008 @ 1:06 pm
Christian,
Right now they have basically pulled everything of significant value. If you didn’t get on the bandwagon on Friday/Sat you pretty much missed it. Im still waiting as I expect to see more domain sales reported. I will keep the blog updated.
Justin
Comment by admin — April 4, 2008 @ 1:12 pm
I love it!!
This is a pure example of how some portfolio owners still do not understand domains are valued much higher than any multiples of PPC can every show.
Congrats Michael
Comment by Alan — April 4, 2008 @ 1:26 pm
I still can’t believe it. I’ve re-read your post a few times now.
Comment by Jorge — April 4, 2008 @ 1:35 pm
Alan,
I think this was just a wild mistake. They corrected it as soon as they could, but utterly foolish.
Jorge,
I cant believe it either. I knew about the LLL.orgs and a few other sales, but the LLL.com’s is just icing on the cake. I believe in the coming days more will be revealed about what really sold and how big of a mistake it truly was.
Justin
Comment by admin — April 4, 2008 @ 1:38 pm
In a previous comment I suggested that iReit is publicly traded. As Justin pointed out, that is NOT the case. Just thought I’d correct myself.
Comment by Etab — April 4, 2008 @ 1:41 pm
This had nothing to do with what a portfolio owner was valuing a domain at. Clearly LLL.com’s are worth high $x,xxx or $xx,xxx.
I think this was a mistake due to lazyness by an employee who was asked to load domains into Afternic and not understanding how Afternic works. If you put a price for your Asking Price, that means it’s your Buy It Now. I do not think the person who listed the domain, was aware of this.
Some lucky people got a steal and by the time iReit figured out, they did the right thing and allowed the sales that happened, to clear. Then they removed the domains that were mispriced.
Jamie
Comment by Jamie — April 4, 2008 @ 1:41 pm
Hawk,
Correct, there was nothing malicious or illegal about what occurred. Quite frankly I titled it that way because to me it seems that when iReit made a mistake, domainers took advantage of it. It was ugly and it was fast, and Im sure iReit didn’t want that to happen. Thus the title.
Comment by admin — April 4, 2008 @ 1:49 pm
They probably hired MBAs who are completely incompetent but look good on paper just like a lot of other publicly traded companies - That is the trend today with Company’s - they employ YES sir / Madam people the further they can get stuck into the owners / Ceo’s butt and tell them what they want to hear they are guaranteed to claim the corporate career.
That is the trend - go with the flow
Comment by damir — April 4, 2008 @ 11:10 pm
iReit Sells LLL.com at 2000 Price levels…
Some more amazing sales were reported through afternic, but not the kind of amazing we used to. This time one lucky guy got a hell of a deal!
Say.org - $500
WJA.com - $735
ZLI.com - $500
PQT.com - $571
RLU.com - $900
Gut.org - $500
LLJ.com - $603
While…
Trackback by Domain Magnate — April 4, 2008 @ 11:51 pm
I still can’t believe it. I’ve re-read your post a few times now, not only that I m now looking toward afternics auction everyday in hope like iReit will hire more employ like this.
Comment by Kally — May 8, 2008 @ 9:23 pm