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2019 was an up year for BuyDomains

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TheDomains Staff
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The reported sales numbers for BuyDomains.com are figures worth paying attention to for domain investors. BuyDomains.com is a division of Endurance International Group BuyDomains.com is selling for themselves so the sales data is that of a singular company just like many domain investors. They own a lot of domains and mostly sell to small and […]

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Thanks for sharing. Do we know approximately how many domains they own?
 
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I've played with their search: typed dash into search box and selected all the extensions.
It shows 927,260 total results.

upload_2020-1-22_17-44-5.png


This means they have very low sell thru rate of 0.24 % (2227 / 927,260 = 0.0024).
 
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I went further and checked what kind of domains they sell. I took their last 100 sales from here and checked whois creation date for each domain.
Most of their sales come from domains registered at 2004 (15%), 2009 (10%), 2015 (9%), ...

upload_2020-1-22_18-2-36.png



This means that probably they deal with renewals rather than handregs.
It is stated that they had $4.7m Dollar Volume in 2019 from sales. But renewals of 927,260 domains * $8 = $7.4m in expenses. Which means they are losing about $2.7m.
So my conclusion is either they do not report all the sales or they renew far below $5 per domain.

@Michael , could you shed some light regarding does NmaeBio capture 100% sales from BuyDomains?

PS: Interesting that BuyDomains.com is a division of Endurance International Group which owns a number of registrars like HostGator, BigRock, Domain.com, ResellerClub.
 
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so its basically renewals for them... no handregs or almost..
but do you guys know if they add to their inventory too? expired auctions or what not..
or its just same old names that keep renewing til they sell?
any idea of how many they let expire in %? cheers
 
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I went further and checked what kind of domains they sell. I took their last 100 sales from here and checked whois creation date for each domain.
Most of their sales come from domains registered at 2004 (15%), 2009 (10%), 2015 (9%), ...

Show attachment 142361


This means that probably they deal with renewals rather than handregs.
It is stated that they had $4.7m Dollar Volume in 2019 from sales. But renewals of 927,260 domains * $8 = $7.4m in expenses. Which means they are losing about $2.7m.
So my conclusion is either they do not report all the sales or they renew far below $5 per domain.

@Michael , could you shed some light regarding does NmaeBio captures 100% sales from BuyDomains?

PS: Interesting that BuyDomains.com is a division of Endurance International Group which owns a number of registrars like HostGator, BigRock, Domain.com, ResellerClub.

Nice job
 
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I went further and checked what kind of domains they sell. I took their last 100 sales from here and checked whois creation date for each domain.
Most of their sales come from domains registered at 2004 (15%), 2009 (10%), 2015 (9%), ...

Show attachment 142361


This means that probably they deal with renewals rather than handregs.
It is stated that they had $4.7m Dollar Volume in 2019 from sales. But renewals of 927,260 domains * $8 = $7.4m in expenses. Which means they are losing about $2.7m.
So my conclusion is either they do not report all the sales or they renew far below $5 per domain.

@Michael , could you shed some light regarding does NmaeBio captures 100% sales from BuyDomains?

PS: Interesting that BuyDomains.com is a division of Endurance International Group which owns a number of registrars like HostGator, BigRock, Domain.com, ResellerClub.
We’re just grabbing what streams across their homepage. I highly doubt that is all their sales, or even a majority. I think the up year was mainly a result of them putting more effort into keeping that stream of sales fresh, although they may have still had an up year. No way to know really.

They are pretty prolific buyers on wholesale venues like GoDaddy, NameJet, and SnapNames which is where a good chunk of their inventory comes from. I see them often in the Sales With History section of our Daily Market Report.

If I get a chance I’ll try to put together some data on their flips, hold period, acquisition source, etc. and post it here.
 
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We’re just grabbing what streams across their homepage. I highly doubt that is all their sales, or even a majority. I think the up year was mainly a result of them putting more effort into keeping that stream of sales fresh, although they may have still had an up year. No way to know really.

They are pretty prolific buyers on wholesale venues like GoDaddy, NameJet, and SnapNames which is where a good chunk of their inventory comes from. I see them often in the Sales With History section of our Daily Market Report.

If I get a chance I’ll try to put together some data on their flips, hold period, acquisition source, etc. and post it here.

Thanks Michael
 
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I went further and checked what kind of domains they sell. I took their last 100 sales from here and checked whois creation date for each domain.
Most of their sales come from domains registered at 2004 (15%), 2009 (10%), 2015 (9%), ...

Show attachment 142361


This means that probably they deal with renewals rather than handregs.
It is stated that they had $4.7m Dollar Volume in 2019 from sales. But renewals of 927,260 domains * $8 = $7.4m in expenses. Which means they are losing about $2.7m.
So my conclusion is either they do not report all the sales or they renew far below $5 per domain.

@Michael , could you shed some light regarding does NmaeBio captures 100% sales from BuyDomains?

PS: Interesting that BuyDomains.com is a division of Endurance International Group which owns a number of registrars like HostGator, BigRock, Domain.com, ResellerClub.
Excellent pie chart (y)
 
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I was able to find 352 examples where a domain sold publicly, and then later was sold by BuyDomains. I can't guarantee they were the buyer in the original sale, but it is probable. I was also including purchases that were in the sub $100 sales database. Anyway, here are some interesting stats from the flip data:

Average Acquisition Price: $582.32
Median Acquisition Price: $187.50

Average Sale Price: $2,586.15
Median Sale Price: $2,022.00

Average ROI: 2,527%
Highest ROI: 32,780%

Average Hold Time: 3.8 years
Longest Hold Time: 16.1 years

Looking at their Top 100 flips with the best ROI, 80 of them were purchased on GoDaddy and mostly in the $xx range. The average acquisition cost of these Top 100 by ROI was $52.10 and the median was $47.

The acquisition venues break down like this:

GoDaddy: 42.6%
NameJet: 19.3%
SnapNames: 14.8%
Pool: 1.1%
Flippa: 0.9%
Other: 21.3%

Largest gain in terms of dollar value was BikeCity.com, which was purchased at SnapNames in September 2005 for $1,208 and sold in March 2007 for $18,000.

This is obviously only a small fraction of their flips, since many of their acquisitions were probably uncontested backorders, GoDaddy closeouts (which we don't track), probably some hand registrations, bulk purchases from domainers, and so on. But hopefully it's still somewhat interesting/helpful :)
 
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I was able to find 352 examples where a domain sold publicly, and then later was sold by BuyDomains. I can't guarantee they were the buyer in the original sale, but it is probable. I was also including purchases that were in the sub $100 sales database. Anyway, here are some interesting stats from the flip data:

Average Acquisition Price: $582.32
Median Acquisition Price: $187.50

Average Sale Price: $2,586.15
Median Sale Price: $2,022.00

Average ROI: 2,527%
Highest ROI: 32,780%

Average Hold Time: 3.8 years
Longest Hold Time: 16.1 years

Looking at their Top 100 flips with the best ROI, 80 of them were purchased on GoDaddy and mostly in the $xx range. The average acquisition cost of these Top 100 by ROI was $52.10 and the median was $47.

The acquisition venues break down like this:

GoDaddy: 42.6%
NameJet: 19.3%
SnapNames: 14.8%
Pool: 1.1%
Flippa: 0.9%
Other: 21.3%

Largest gain in terms of dollar value was BikeCity.com, which was purchased at SnapNames in September 2005 for $1,208 and sold in March 2007 for $18,000.

This is obviously only a small fraction of their flips, since many of their acquisitions were probably uncontested backorders, GoDaddy closeouts (which we don't track), probably some hand registrations, bulk purchases from domainers, and so on. But hopefully it's still somewhat interesting/helpful :)

Thanks for the extra effort Michael, nice data.
 
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Really nice analysis by year @Ntmt - more variation than I would have expected.

Thank you so much for the analysis @Michael - I had incorrectly assumed that virtually all acquisitions would be at GoDaddy so interesting to see significant acquisitions at NameJet, SnapNames and Other.

The ROI ranges and price information, both acquisition and sales, are I guess not surprising but really nice to have the data. This of course is a subset of their effective flips, and one needs to keep in mind all of those in their portfolio that did not sell.

Their median and average sales prices are surprisingly close, so I guess they sell the vast majority of their names in a somewhat narrow price window.

You may not post on NamePros as often as some of us @Michael, but when you do what great content and insights! (y) This is one of the more informative posts on NamePros. Thank you so much for taking the time to do it.

Bob
 
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I went further and checked what kind of domains they sell. I took their last 100 sales from here and checked whois creation date for each domain.
Most of their sales come from domains registered at 2004 (15%), 2009 (10%), 2015 (9%)........

I have studied all kinds of market and price cycles for decades and see an obvious 6-year cycle. So next year 2021 should be a bullish year :xf.smile: The year before the cycle high years is contrarily a very weak one as low as 1%, Based on that data (assuming data analysis, sample size and chart is valid) 2020 will be a bearish year :xf.frown:

P.S. Sorry, my bad the data was based on domain reg dates not sales which I misread :xf.cry:
 
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I have studied all kinds of market and price cycles for decades and see an obvious 6-year cycle. So next year 2021 should be a bullish year :xf.smile: The year before the cycle high years is contrarily a very weak one as low as 1%, Based on that data (assuming data analysis, sample size and chart is valid) 2020 will be a bearish year :xf.frown:

Pay attention that this chart depicts Registration year, not a Sale year. Also note that chart is based on last 100 sales, not all the sales.
 
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Pay attention that this chart depicts Registration year, not a Sale year. Also note that chart is based on last 100 sales, not all the sales.

My bad I missed that so what effect does that have on sales in your opinion if the cycle is valid?
 
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My bad I missed that so what effect does that have on sales in your opinion if the cycle is valid?
This is interesting theory but it needs to be cheked with broader dataset containing diverse sales data from multiple venues.
 
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yes however statisticians have said a minimum sample size of just 30 is normally sufficient.
 
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