James Iles

Domain Data: Analyzing $30 Million of Liquid Domain Sales

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By James Iles, Nov 14, 2017 at 6:54 AM
  1. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    Every quarter, Giuseppe Graziano of GGRG.com and Intelium Corp team up to produce an industry-leading report detailing the current state of the liquid domain market. With the end of 2017 fast approaching, the latest liquid domain report is now available.

    In this edition of Domain Data, we’re going to take a closer look at some of the numbers in the report, comparing those to the previous quarter. We’ll also be analyzing the $24.4 million worth of liquid domain sales conducted by Escrow.com this quarter. In total, the report contains almost $30 million worth of liquid domain sales.

    There are nine different liquid domain marketplaces in the report:
    • Two-letter .COM’s
    • Three-letter .COM’s
    • Four-letter .COM’s
    • Two-number .COM’s
    • Three-number .COM’s
    • Four-number .COM’s
    • Five-number .COM’s
    • Two-character .COM’s
    • Three-character .COM’s

    Developed Domain Names

    The report lists the number of developed domain names from each category. Overall, a total of 15.63% of all liquid domain names tested are classed as “developed”. It isn’t exactly clear what defines a developed domain name.

    The most developed category is, unsurprisingly, two-letter .COM’s with 35.5%. A vast number of corporations own two-letter .COM’s, with many smaller firms, also opting to acquire these premium domains in recent years. For example, domains such as TN.com, VE.com and SE.com have been picked up by companies looking to improve their web presence.

    data.jpg
    Comparing the amount of two-letter .COM’s developed in Q2 to Q3, we see a slight decline in the number of domains developed. By my calculations, it shows six domain names have been declassified as “developed”. This could be due to the domain name having sold, such as Aron Meystedt’s sales of XF.com and OC.com.

    In terms of the development of three-letter domains, it shows a similar pattern with 77 domains moving from “developed” to “undeveloped” status. Four-letter .COM’s, however, showed a gain of 7,719 domains becoming “developed”.

    The development of two, three and four-number .COM’s all dropped whilst five-number .COM’s stayed almost exactly the same, as did two and three-character .COM’s.


    Domains Sold

    According to the report, a total of 3,449 liquid domain names were sold in Q3, with the majority of those being four-letter .COM’s. With a fall in prices for most four-letter .COM’s, the disclosed sales volume totalled over $2.48 million, which equates to an average sales price of $1,087 per name. The turnover rate for four-letter .COM’s is lower this quarter, falling from 0.82% in Q2 to 0.50% in this report.

    Elsewhere, there were thirty-one three-letter .COM sales that were publicly revealed with an average sales price of over $43,000. There were no reported two-letter or two-number .COM sales, with just one three-number .COM sale.

    A category that remains active is the three-character .COM market. With a 1.36% turnover and 382 detected public sales, The average sales price for a three-character .COM this quarter is $1,076.


    Escrow.com Sales

    Escrow.com teamed up with Giuseppe and Intelium to release some of its data. Whilst exact figures weren’t disclosed, the company did reveal over $24.4 million in liquid domain sales for Q3. It’s interesting to note that just $5.4 million of liquid domain sales were publicly revealed, versus the $24.4 million in sales performed through Escrow.com. It goes to show that very few sales are disclosed.

    Over $2.6 million of that figure was for two-letter .COM sales. Whilst we don’t know which domain names are accountable for that figure, we do know that several two-letter sales took place in Q3. These include Aron Meystedt’s acquisition of OC.com and his subsequent sale of both OC.com and XF.com.

    There were no two or three-number .COM sales at Escrow.com, but there were plenty of three-letter .COM’s. A total of $7.34 million worth of three-letter .COM domains were sold via Escrow.com in Q3. As discovered in our “Detected Domains” series, Anything.com recorded a couple of undisclosed three-letter .COM sales in the past few months including OBN.com and VOC.com. It’s possible that these two sales contributed to that figure of $7.34 million.

    One of the most impressive categories in terms of sales volume is three-character .COM’s. With $8.5 million worth of sales via Escrow.com in Q3, it is the highest performing category. With just 28,080 three-character .COM’s in existence, there are likely to have been some relatively large sales conducted via Escrow.com.





    For a full round-up of the Q3 report from Giuseppe Graziano and Intelium Corp, you can download a PDF copy of the report for free at Giuseppe’s website.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
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  4. James Iles

    About The Author — James Iles

    Writer for NamePros.com, domain name investor and broker. For all inquiries relating to stories and interviews, please email: [email protected]

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  5. Comments (8)

  6. SamDam

    SamDam Established Member

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  7. Bros

    Bros Active Member VIP

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    Thanks for sharing, pretty interesting to see the number of developed two letter .coms go down.
     
  8. Recons.Com

    Recons.Com Business Member Business Account VIP

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    Wow! So about 1.5% of total existing LLLL.coms moved to "developed" just in a quarter. Assuming, around 15% were developed already and if every year 5% or so is taken off the market, the supply of LLLLs dries up considerably every year.
     
  9. Keith DeBoer

    Keith DeBoer BrandBucket Brand Ambassador PRO VIP

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    That's an interesting conclusion Recons..... The article above says:

    "The development of two, three and four-number .COM’s all dropped"

    and the actual report (PDF) shows in slide #16 the trailing totals for the past four quarters and indicates the number of developed 4Ls has fluctuated up and down over the past 4 quarters with no real clear gains.

    but maybe I'm missing something :)
     
  10. Recons.Com

    Recons.Com Business Member Business Account VIP

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    Did not look at pdf until now. Still you can see a gain of 1-2% even there. Maybe 7700 names was not for quarter, but for 4 quarters?
     
  11. Keith DeBoer

    Keith DeBoer BrandBucket Brand Ambassador PRO VIP

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    It's so interesting that the development % for these liquid domains fluctuates up and down. Even on the 3Ls. I find that remarkable. I would have thought it would just be one way and the number of biz failures etc would be minimal. But that was probably rather naive or me :)
     
  12. promo

    promo Domain investor and broker VIP ★★★★★★★★★★

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    I have not read the report yet. But seems to me there is a difference between four NUMBER .coms, which is what you are refering to Keith, and four LETTER .coms. Which is what Recons is referring to.
     
  13. Keith DeBoer

    Keith DeBoer BrandBucket Brand Ambassador PRO VIP

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    Thanks Promo for the correction, good catch.
    the PDF however does show ups and downs for development % for 3Ls and 4Ls.
    Its interesting data to mull over :)
     
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