Does a resellers market even exist?

[Rick Pereira]

What i mean by this is that i feel that namepros doesnt have real buyers picking up names that are worth $x,xxx for even $xxx. I see decent names going for a $1(i am a noob so i can be wrong) and i very rarely see anyone making real bids unless its an obvious 3 letter.com. It seems like you ever sell directly to the end user or you almost give stuff away? Am i wrong?

 

[NameOmnia]

I think that some points of your though are quite right.

 

[forge]

Excellent point.

There's way too much Mickey Mouse bullshit.

 

[NameOmnia]

Sometimes I find myself quite frustrated too if I have to be honest.

The majority of bids or offer ( even for GOOD NAMES including premium, LLLs, NNNNs, LLLLs ) are just ridiculous. With the excuse of " I am a reseller I buy at reseller price " what you see 90% of the times are low ball offers.

Then you happen to browse the " top domain " section ( reseller value has to be over 1K ) and you find names like :

Recured : dictionary word that 3/4 of the English population doesn't even know the meaning of
LakeLease : well...
FreePromoCodes : like someone pointed out " aren't promo code free by definition? "
Tegnebog ......

and some more that I don't even remember.
Nothing against the owners or anyone else just feeling a bit

 

[Rick Pereira]

Dont get me wrong, i understand that the buyer/reseller should get the big cut, but fot example, i see domains that would be worth $1000, being offered $20-$40.

Thats a massive gap.

 

[garptrader]

I don't know the exact figures but I recall reviewing one of SEDO's reports one time and estimating that only one in 1000 domains on their platform had sold in the last year. I believe the median sales price at SEDO is around $600. Given that parking income is relatively small for newer domainers, a sell through ratio of one tenth of one percent would mean a considerable negative cash flow for the typical domain portfolio. Many students go into fields like business, information technology, engineering, medicine, law partially motivated by the healthy salaries which professionals in those fields earn. Many are attracted to domaining because of the DNJ sales reports of five and six figure sales. However, the reality for most industry participants is much different than those who started 15-20 years ago.

 

[Rick Pereira]

Do you mean that there is no value in a resellers market then? Since so many domains dont ever sell?

 

[NameOmnia]

I think that is quite a given that 99% of domains are sold to domainers ( especially EMDs ) and that's probably why, a marketplace like sedo which is more end-user oriented, has that poor listed/sold ratio.

We also have to keep in mind that on Sedo there is no filters..I mean..you can list everything up to a price of 10K if I remember correctly, which means that meaningless crappy domains like hifrehcinhwhwhrwhwh.pw can be listed for up to 10K....It doesn't really contribute to increase the sales for sure!

As for NP, I think the story is completely different.

 

[infosec3]

You are 100% right.

 

[Mohammad]

I think Flippa, Bodis and Sedo are better place to sell worthy names. However, NamePros is cool but most of the time, buyers offer low prices for good names.

 

[Kate]

The reseller market used to be more lively, that is years ago. The sales sections in the forums were more active, there was more money flowing around. Back in 2005-2006 for example.

I think new extensions contributed to the demise of the reseller market. Some domainers have lost a lot of money on .mobi .co .tel .this .that. Also, new extensions have caused distraction and uncertainty among domainers.
It's like the stock market when overall confidence is at a low.

Also, people are trying to offload inventory. Buy less, sell more. Everybody wants to sell. Domainers ain't buying any more from each other, because they lack liquidity...