Mike Mann at TRAFFIC 2012 in Ft. Lauderdale.
Domain investor and entrepreneur, Mike Mann, often shares tidbits of wisdom on his social media accounts.
We’ve covered an immense amount of such shared knowledge, in the nine – so far – chapters of our open series, MannQuotes.
In a recent post via LinkedIn, Mike Mann concentrated on the efficiency of markets, including those that trade domain names:
“Inefficient markets like domain trading provide opportunity to profit by becoming a market making dealer, given generally huge spreads between bid and ask prices.
But the inefficiency also means relative illiquidity and difficulty explaining and agreeing to valuations, whereas relatively efficient marketplaces like the NYSE are easy work in but hard to create a big profit margin.”
In other words, Mike is analyzing the ability to leverage the gap in asking vs. selling domain prices, by becoming a power-broker of domains, and compares it to the stock market’s trading of futures.
Mike’s closing statement is rather humorous and many domain investors will surely identify with it:
“Either way if someone offers me $50 for a $100,000 domain again Im going to mentally strangle them.”
That was an awesome mental picture, Mike, and thanks for sharing the knowledge! 😀
