A window on the fascinating world of ‘domaining’
Recently, internet auction house Sedo.com published its Global Domain Report for 2020. As well as describing trends in the market as a whole, the publication provides information about the domain name trading mediated by Sedo. The report makes compelling reading. Because, with roughly 19 million domain names for sale, Sedo is a major global player on a market where good data is hard to come by. Rather than giving a representative picture of the market as a whole, the report is a window on the fascinating world of 'domaining' -- the business of buying and selling domain names. The central take-home point is that transactions of less than $1,000 account for the majority of trades.
Low-value sales dominate
It may come as a surprise to hear that domain names generally change hands for so little money. After all, most sales that make the news involve huge price tickets: when voice.com was sold for $30 million last year, it hit the headlines all over the world. However, the reporting of such mega-deals can easily give a distorted impression. In reality, Sedo says, about two thirds of all domain names sold in 2019 changed hands for less than $1,000. Indeed, 45 per cent of sales were for less than $500. And the hammer went down at more than $10,000 in just 3 per cent of auctions.
Averages and corrected averages
The influence of the top-end sales is emphasised by the difference between overall average transaction values and the average values after excluding outliers. In 2019, the overall average price for a .com name sold through Sedo was $2,693, for example. However, once outliers -- very high and low-value transactions -- are removed from the picture, the average comes down to $530. The corresponding figures for .nl are $1,683 and $776.
Read more (SIDN)
Read more (SIDN)
Recently, internet auction house Sedo.com published its Global Domain Report for 2020. As well as describing trends in the market as a whole, the publication provides information about the domain name trading mediated by Sedo. The report makes compelling reading. Because, with roughly 19 million domain names for sale, Sedo is a major global player on a market where good data is hard to come by. Rather than giving a representative picture of the market as a whole, the report is a window on the fascinating world of 'domaining' -- the business of buying and selling domain names. The central take-home point is that transactions of less than $1,000 account for the majority of trades.
Low-value sales dominate
It may come as a surprise to hear that domain names generally change hands for so little money. After all, most sales that make the news involve huge price tickets: when voice.com was sold for $30 million last year, it hit the headlines all over the world. However, the reporting of such mega-deals can easily give a distorted impression. In reality, Sedo says, about two thirds of all domain names sold in 2019 changed hands for less than $1,000. Indeed, 45 per cent of sales were for less than $500. And the hammer went down at more than $10,000 in just 3 per cent of auctions.
Averages and corrected averages
The influence of the top-end sales is emphasised by the difference between overall average transaction values and the average values after excluding outliers. In 2019, the overall average price for a .com name sold through Sedo was $2,693, for example. However, once outliers -- very high and low-value transactions -- are removed from the picture, the average comes down to $530. The corresponding figures for .nl are $1,683 and $776.
Read more (SIDN)
Read more (SIDN)
