domains Boston Consulting Group delves into the $2 Billion Secondary Market for Dot-Com Domains

[equity78]

Boston Consulting Group (BCG.com) put together a very detailed look at the secondary market for domain name sales. There were four authors who contributed to the piece. Ramiro Palma, Raj Varadarajan, Jaison Justin and Stephen Robnett. The authors wanted to better understand a market that in their opinion is not well understood. They had questions […]

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[Lox]

Article: Authors
Before joining BCG:

• R.V. was a manager of corporate research and development for the General Electric Company in Schenectady, NY. At GE, Raj worked with businesses around the world—in sectors including plastics, lighting, appliances, and aircraft engines.
• R.P. spent time working in venture capital, in the medical-devices industry, and as an entrepreneur.
• J.J. worked as a semiconductor product manager at Electro Scientific Industries, Inc., where he led marketing strategies for the semiconductor and LCD manufacturing industries.
• Prior to joining BCG, S.R. held roles in research and development, field sales and marketing, and startup operations.

Regards

 

[CraigD]

"In other words, nearly half of the dollars end-users spent buying new domains go to domainers."

And 26% of that secondary market is held by a dozen corporate domainers, with another 18% held by a few thousand domainers who each own 101 to 10,000 domains.

 

[Future Sensors]

Thanks. Had a quick glance, but still have to read the full PDF.

I wonder how the researchers count investors like GoDaddy, who have been acquiring several very large domain portfolios from domainers and added these domains to their "domainer" inventory. These acquisitions were in fact domain sales, but not to end-users. GoDaddy can be regarded a buyer, seller and domainer. In other threads, some express their concerns about the mixed hats.

 

[tonyk2000]

I read this PDF. What is it for? Who paid for their time and efforts? Or, are they simply curious?

Sorry, but if a domainer starts writing reviews about Electric and Lighting business - then the same authors (who have professional experience in this field) will laugh.

So many points are missed that this survey makes little or no sense.

In no particular order:

- secondary market is not only .com

- registrars, even though are not supposed to "warehouse" domains as per their ICANN accreditation agreement, have no issues doing this via fully owned corporate entities

- expired domains wholesale transactions are missed. So are other b2b (domainer-to-domainer) transactions.

- fraud and unethical practices (==> more $$$ to some players) are not discussed in any aspect - auctions frontrunning, "games" with expired domains where registrars/resellers are involved either alone OR together with some domainers (public and published expiration process is changed for some domains = corruption), shill bidding (halvarez case), "legalized" shill bidding (where a bidder is receiving a bounty for NOT being the highest bidder), etc, etc, etc

- entities [brokers, platforms etc] who are between the enduser and the domainer - and receive a big piece of a pie - are missed

- not all domainers are profitable

- registries are always profitable and still have balls to increase prices

...

 

[CraigD]

.

 

[NickB]

I read this PDF. What is it for? Who paid for their time and efforts? Or, are they simply curious?

Sorry, but if a domainer starts writing reviews about Electric and Lighting business - then the same authors (who have professional experience in this field) will laugh.

So many points are missed that this survey makes little or no sense.

In no particular order:

- secondary market is not only .com

- registrars, even though are not supposed to "warehouse" domains as per their ICANN accreditation agreement, have no issues doing this via fully owned corporate entities

- expired domains wholesale transactions are missed. So are other b2b (domainer-to-domainer) transactions.

- fraud and unethical practices (==> more $$$ to some players) are not discussed in any aspect - auctions frontrunning, "games" with expired domains where registrars/resellers are involved either alone OR together with some domainers (public and published expiration process is changed for some domains = corruption), shill bidding (halvarez case), "legalized" shill bidding (where a bidder is receiving a bounty for NOT being the highest bidder), etc, etc, etc

- entities [brokers, platforms etc] who are between the enduser and the domainer - and receive a big piece of a pie - are missed

- not all domainers are profitable

- registries are always profitable and still have balls to increase prices

...

That is a good question - "who paid for it"

IMO - no way are 4 partners going to write all this up just out of curiosity, someone has paid a decent amount of money for it......

When you go through the slide show, at the bottom In the disclaimer it says "The materials contained in this presentation are designed for the sole use by the board of directors or senior management of the Client"

So who is the client.....

 

[Future Sensors]

Thanks @NickB

https://www.circleid.com/members/8712/

Mike Montgomery
Executive Director at CALinnovates
Joined on February 10, 2021

He wrote his first -and only- article on CircleID on Feb 10, 2021 as well.

https://www.circleid.com/posts/20210210-now-we-know-why-its-hard-to-get-a-com/

See also this tweet from @GeorgeK

https://twitter.com/x/status/1359611600592924675

 

[platey]

that makes me a high volume private domainer that is not profitable

lol

 

[tonyk2000]

someone has paid a decent amount of money for it......

Yeah, and they should request a full refund...

 

[Future Sensors]

Yeah, and they should request a full refund...

I think the client is very happy with the report from an organization as renowned as BCG, which can now be referred to every time. It serves a higher purpose, evidently.

 

[CraigD]

Whoever commissioned this report doesn't like the status-quo where a 'dozen corporate domainers' own 26% of the secondary market.

 

[Lox]

Whoever commissioned this report...

Ethos Capital / Boston. Waiting for the next article .....backdoor acquisition of .org .

 

[Maximinus]

I read this PDF. What is it for? Who paid for their time and efforts? Or, are they simply curious?

Sorry, but if a domainer starts writing reviews about Electric and Lighting business - then the same authors (who have professional experience in this field) will laugh.

So many points are missed that this survey makes little or no sense.

In no particular order:

- secondary market is not only .com

- registrars, even though are not supposed to "warehouse" domains as per their ICANN accreditation agreement, have no issues doing this via fully owned corporate entities

- expired domains wholesale transactions are missed. So are other b2b (domainer-to-domainer) transactions.

- fraud and unethical practices (==> more $$$ to some players) are not discussed in any aspect - auctions frontrunning, "games" with expired domains where registrars/resellers are involved either alone OR together with some domainers (public and published expiration process is changed for some domains = corruption), shill bidding (halvarez case), "legalized" shill bidding (where a bidder is receiving a bounty for NOT being the highest bidder), etc, etc, etc

- entities [brokers, platforms etc] who are between the enduser and the domainer - and receive a big piece of a pie - are missed

- not all domainers are profitable

- registries are always profitable and still have balls to increase prices

...

Strange and optimistic this report is actually mystic!
The missing sources are not surprising for the trained eye!
Useless

 

[iAdam]

Disclaimer:
The materials contained in this presentation are designed for the sole use by the board of directors or senior management
of the Client and solely for the limited purposes described in the presentation. The materials shall not be copied or given
to any person or entity other than the Client (“Third Party”) without the prior written consent of BCG.

This is designed for senior management not for domainers

 

[Afzal N]

Helpful study..