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Bob Hawkes

Wholesale and Retail Domain Name Transactions

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By Bob Hawkes, May 13, 2020
  1. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP Gold Account Trusted Blogger

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    Sorry but I honestly don't follow what you mean by me not answering or being contradictory. To repeat the answer I gave before to this question (first line only to highlight what answer is):
    They might be buying at wholesale prices, or not, but if they are buying the domain name to build some business on, and have no intention to try to resell the domain name, they are not a domain investor, as I view it.

    Just because most sales at a venue are wholesale, or most are retail, does not mean they all are. An expired auction is an expired auction. It can have a mix of wholesale and retail buyers. Probably vast majority are wholesale buyers. I see nothing contradictory.

    Sorry, I am trying to address your question, but after reading and rereading the questions and answers it seems clear and consistent to me.

    Bob
     
    Last edited: May 14, 2020
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  2. jim h

    jim h Upgraded Member Gold Account Blue Account

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    Very interesting share, thank you.
     
  3. CraigD

    CraigD Established Member

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    I forgot it was NetSol originally - Verisign came a bit later. I do remember the long faxed receipts.
     
  4. Lavern Clardy

    Lavern Clardy Established Member

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    Thanks Bob for that great article. this was a need to read blog. Thank you.
     
  5. BrandAptly.com

    BrandAptly.com Established Member

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    @Bob Hawkes Thanks for yet another insightful industry analysis. For my educational benefit, how does Namebio track sales? I imagine transactions executed directly through PayPal and other similar payment facilities are not recorded. What percentage of all the domain transactions do you estimate that to be?
     
  6. NewDayBrand

    NewDayBrand Upgraded Member Gold Account

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    Very interesting, Thank you so much
     
  7. NewDayBrand

    NewDayBrand Upgraded Member Gold Account

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    Can we say that in other words, since .Info is sold many many times before it founds an end user.. does it mean that .info is a bad investment for a reseller?
    Best regards
     
  8. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP Gold Account Trusted Blogger

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    NameBio can only report sales that are reported to them or that they are able to access through public feeds, as in some of the auction results. They have the GoDaddy, NameJet, ParkIO, Catched, AI registry and Dynadot auction results among others, the Sedo reports of sales (but generally Sedo only report sales above $2000, and only if optional privacy was not paid for by buyer, or seller), sales from some of the big operations like NameBuy (but it seems those just above a certain price level). A very few of the new extension registries report sales (e.g. global and some of the club). Other venues, such as Uniregistry and DomainMarket report only a small portion, generally the upper end, of their sales. Generally sales made at DAN, Afternic and Efty sites are not reported, unless the buyer or seller report them individually. Anyone is encouraged to individually report sales to NameBio, and can do so by sending verification along with the basic data of name, date, price and seller. Michael wrote a post on NamePros here (but some time ago) indicating what they were accessing.

    Now to the part what percentage they have. By not including Afternic, DAN and Sedo less than $2000 they are missing a lot of the retail market. It is almost purely a guess, but just based on how many names are there, it seems to me that maybe order of 10% or even less of retail sales (may depend a bit on definition of retail sales). In particular, they sample the upper end of the retail better than the $200 to $2000 end.

    On wholesale, I think with the auctions they cover it might be argued that they have maybe 50% of wholesale sales. Obviously none of the sales on NamePros, unless individually reported are in, nor other private ones between domain investors. Nor things like the new wholesale domain exchange sites. Still having GoDaddy, NameJet, Dynadot, ParkIO, etc. catches a lot.

    Thanks for the very good questions, which get at the heart of, in my opinion, the uncertainty in the ratios presented. Sorry I took so long to answer.

    Bob

    ps Add: When I estimated they have 50%+ of wholesale I was meaning when include their sales <$100 too, available via membership plan.
     
    Last edited: May 22, 2020 at 6:17 PM
  9. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP Gold Account Trusted Blogger

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    It might be interpreted that way, but really each name is different. I am sure there are many .info that are good investments. It depends on the name and the price it is obtained at.

    Note that a high ratio does not necessarily mean a bad investment. If your business model was mainly to obtain names at discount to real worth, and sell them to other investors, a high ratio might be good actually.

    Also, the simple model used here to divide retail and wholesale sales probably does not work well across extensions (if at all :xf.wink:). I thought it was interesting as a numerical exercise, but I would not read too much into it. I mainly did it just to demonstrate that on average there are many times more wholesale transactions than wholesale. I think that is true no matter how you do the numbers, and if you took a much higher dividing line, e.g. a prominent domain figure proposed outside of NamePros using $1500, that ratio would be much higher.

    If considering .info as an extension, to get back to your question, it is also good to look at how the volumes have changed in recent years and the average price trends. Also look at real world use trends. Finally, and perhaps most important, use NameBio to look at what is selling in the past couple of years in the extension (you can see that list here). I think .info has a place still, but as in most things research and choose carefully which to hold.

    Thanks for your question, and best wishes in your investing.

    Bob
     
  10. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP Gold Account Trusted Blogger

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    Too late to edit this from my comment just above, but I meant to say many times more wholesale transactions than retail, of course
     
  11. NameAlbum

    NameAlbum New Member

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  12. wot

    wot Top Contributor VIP ★★★★★★★★★★

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    Reseller wholesale retail or , wholesale reseller retail?
     
  13. BradWilson

    BradWilson Upgraded Member Gold Account

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    Well I had THAT dream :)

    Don't want to bore everyone with a code explanation so I'll work on it and present my findings when I'm done okay?

    Basically, I saw in my dream the key to a possible pattern. I'll need to write a script that filters the data to see if the pattern exists.
     
  14. elevator

    elevator DnCombo.com VIP

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  15. WatchDogue

    WatchDogue Top Contributor VIP

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    That is a difficult question to answer re " we " although I'll answer it re " me ".

    When I acquire a .com name for the most part I multiply the presumptive annual renewal fee by 10.

    Why x10?

    Because if I acquire a name I plan to " hold on " for a minimum of 5 years and most likely 10 years waiting for that elusive yet effusive buyer to find the name and hit BIN and send along their payment.

    I am a realist about the length of time it takes to find the buyer and like-wise the cost associated with the hold time it takes to find that buyer.

    So an " $8.99 " initial domain cost in my mind means I am committing at least $45.00/5 years or more likely, $90.00/10 years to the name.

    So to me that is the right length of time to " hold 'em" as have had buyers arrive after 5 year holds, after ten year holds and, after a 16 year hold/renewal time period.

    Have dropped some names after 10 year, hearing the swirling sound of cash down the proverbial drain, as there was absolutely no play on the name for a couple of consecutive years.

    Will add that I speculated a few times on some " new exts ", the wrong new ones apparently, and after examining / viewing overall reported ext. sales and the escalated renewal fees - kept those beauties on a short leash and dropped 'em after a couple/three years of too much $ output and no incoming action.

    Back to my .com domains,I decide to keep 'em if I believe they generate a reasonable amount of type-in-traffic per annum for their respective likely target market ( intuition - not science) - or - if a name is ever occasionally available for " make offer " I receive an occasional inquiry or offer.

    AND, I also " hang onto " a name I can use as a point or re-direct to one of our websites to justify its' renewal and hold time cost.

    IMO anybody acquiring a name should allow at least a 2-3 year minimum, absolute minimum hold time to see if the name has potential buyer play in the vast fragmented sea of potential buyers.
     
    Last edited: May 27, 2020 at 12:48 PM
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