Only 23% of Sedo's sales are .com domains for $700 or more

[hookbox]

I was checking out Sedo's latest sales from June 9th. Here is some info.


Out of 560 total domains sold only 129 were for .coms of $700 or more. So only 23% of the 560 domains sold were .coms for more than $700.

There was 1 million dollars in total sales of which only $353,909.22 were .com sales of $700 or more.

So .com sales of over $700 equals only 35% of the 1 million dollars in total sales.

Obviously if you have ultra premium names then numbers like this don't matter much but for those that have average domains it does matter. Seeing the low percentage numbers it makes you wonder if it's best to price domains under $700 if you really want to move inventory. These numbers show that only a very small percentage (23%) sell above $700.

Please share your thoughts.

 

[Asfas1000]

Just wondering why you use the number $700 and not $500 or $900.

 

[biggie]

i would say that conclusion is flawed

and i can think of a few reason why:

why price your names, based on sales report for that period, because if values rise the next year....you've lost money.

additionally, there are names listed on sedo, which may have sold elsewhere for more $700

there is also no mention of what other extensions sold above $700, so pricing "domains in general" under that amount wouldn't be wise.

also, one has examine years of sales reports to gauge fluctuations. you can't just take snapshot in time and make it a standard, averages have to be factored.

finally, the sellers of those domains are unknown, and therefore their individual situations are too, so again it would be unwise to price one's names to suit that figure, without knowing financial conditions of each seller.


imo....

 

[hookbox]

Just wondering why you use the number $700 and not $500 or $900.

Unfortunately Sedo only releases sales above $700

 

[garptrader]

While it is interesting to read about four, five and six and seven-figure domain sales, my personal experience is that domain sales over US$1000 are not common - only about ten percent of domains sold though a much larger percentage of sales dollars (reason why many domain investors only consider $5k+ offers). Domain sales of $349 or below have been nearly half of sales volume (domains sold) but do little more than pay renewals. Also worth noting is that while one's portfolio quality tends to improve with time / experience, I have noticed that four-figure sales seem to be much rarer post 2010. Despite nine years in domaining, I have not had a sale over $799 since August 2014. Thus my skepticism of the investment merit of new TLDs.

 

[discobull]

I was checking out Sedo's latest sales from June 9th. Here is some info.


Out of 560 total domains sold only 129 were for .coms of $700 or more. So only 23% of the 560 domains sold were .coms for more than $700.

There was 1 million dollars in total sales of which only $353,909.22 were .com sales of $700 or more.

So .com sales of over $700 equals only 35% of the 1 million dollars in total sales.

Obviously if you have ultra premium names then numbers like this don't matter much but for those that have average domains it does matter. Seeing the low percentage numbers it makes you wonder if it's best to price domains under $700 if you really want to move inventory. These numbers show that only a very small percentage (23%) sell above $700.

Please share your thoughts.

I'm wondering how this adds up. 560-129= 431. If all 431 were domains that sold at $699 each, that would equal $301K. That together with the sales of the .coms over $700 equals a total of just over $655k. So where did the other $350k come from?

Additionally, I'm not sure that one day's worth of data is statistically significant.

 

[hookbox]

I'm wondering how this adds up. 560-129= 431. If all 431 were domains that sold at $699 each, that would equal $301K. That together with the sales of the .coms over $700 equals a total of just over $655k. So where did the other $350k come from?

Additionally, I'm not sure that one day's worth of data is statistically significant.

It's one weeks worth. 560 total domain sales across all TLDs with 129 being .com sales above $700 or more which totals 353K. 129 sales is 23% of total sold.

 

[hookbox]

560 total domains sold
129 .coms for $700 or more
75 sold in other extensions for $700 or more
204 total sales of all extensions including .com for $700 or more

Since they only show sales above $700 that means that 356 of the 560 total domains sold was below $699 or 65% of total domains sold was for $699 or less.

 

[discobull]

560 total domains sold
129 .coms for $700 or more
75 sold in other extensions for $700 or more
204 total sales of all extensions including .com for $700 or more

Since they only show sales above $700 that means that 356 of the 560 total domains sold was below $699 or 65% of total domains sold was for $699 or less.

The volume of sales doesn't matter as much as total dollars generated ( eg it's better to sell one domain at $50k than 10 domains at $500 each ). You haven't posted the total sales dollars for over $700 domains, but if we assume $699 for every single sale below $700, that means that the maximum smaller sales total = 356 X $699 = $248,844 which in turn means that the over $700 sales equal about $750k, or 75% of total dollars even though they only account for 35% of total sales volume. Again, that's assuming the maximum amount allowed for all smaller sales which is highly unlikely.

Another thing worth pointing out is that these figures aren't that meaningful without having more marketplace data. An example of what I mean would be that the figures cited have a different significance if 99% of all domain for sale listings are below $700 ( an extreme example for illustration purposes ) vs 50% or some other number.

 

[hookbox]

The volume of sales doesn't matter as much as total dollars generated ( eg it's better to sell one domain at $50k than 10 domains at $500 each ). You haven't posted the total sales dollars for over $700 domains, but if we assume $699 for every single sale below $700, that means that the maximum smaller sales total = 356 X $699 = $248,844 which in turn means that the over $700 sales equal about $750k, or 75% of total dollars even though they only account for 35% of total sales volume. Again, that's assuming the maximum amount allowed for all smaller sales which is highly unlikely.

Another thing worth pointing out is that these figures aren't that meaningful without having more marketplace data. An example of what I mean would be that the figures cited have a different significance if 99% of all domain for sale listings are below $700 ( an extreme example for illustration purposes ) vs 50% or some other number.

The total sales for all 560 domains was 1 million dollars. The total sales for all domains of $700 or more was $517,772.

 

[discobull]

The total sales for all 560 domains was 1 million dollars. The total sales for all domains of $700 or more was $517,772.

Unless I'm missing something, I don't see how these numbers can possibly work. If the sales for domains over $700 = $517,772.00, that means that the total sales for domains under $700 has to be $1,000,000 - $517,772 = $482,228. However, $482,228 divided by 356 domains = $1,354.57 per domain which is obviously a lot more than $699 each.

 

[hookbox]

Unless I'm missing something, I don't see how these numbers can possibly work. If the sales for domains over $700 = $517,772.00, that means that the total sales for domains under $700 has to be $1,000,000 - $517,772 = $482,228. However, $482,228 divided by 356 domains = $1,354.57 per domain which is obviously a lot more than $699 each.

I agree they don't add up right. In the report Sedo says that it was a total of 560 sales totaling 1 million dollars and in the report they show 204 domains which total $517,772. I converted all the euro sales to dollars so the numbers are accurate. The only way they could have 1 million dollars in sales is if the remaining 356 domains sold for $482,228 but as you pointed out that would put each domain at $1,354 which is above the $699 or below price they would have to be at for the numbers to work.
Why would Sedo give inaccurate information that is so far off from what it should be? It's not a little off it's way off.

 

[GravityEleven]

i think you guys forgot that Sedo (which they also mention infrequently) includes private domain sales (non published) in their total sales amount and total number of domains sold but do not list them, causing this mismatch between total sold amount/domains and list of published domains

therefore this does not mean that there were really only 204 sales over $1,000 but actually just 204 public(!) domain sales over that amount.. there is always a number of private sales not published but also being sold for over $1,000 so there are clearly less than 560-204 sales for below $700 usd..

 

[hookbox]

i think you guys forgot that Sedo (which they also mention infrequently) includes private domain sales (non published) in their total sales amount and total number of domains sold but do not list them, causing this mismatch between total sold amount/domains and list of published domains

therefore this does not mean that there were really only 204 sales over $1,000 but actually just 204 public(!) domain sales over that amount.. there is always a number of private sales not published but also being sold for over $1,000 so there are clearly less than 560-204 sales for below $700 usd..

I was always under the impression that if the sale is private then those numbers don't show up in the report at all. I found this post on Elliots Blog about this very thing but maybe things have changed since then.

http://www.domaininvesting.com/sedo-sells-800k-in-domain-names-not-including-700k-sale/

 

[Kate]

The sales data available debunks the myth that aftermarket domain names are expensive.

Also, those who have average domains should learn to be flexible. The first offer received will often by the last. People need to be realistic and move inventory. There is nothing wrong with sales below $1000, if you make sales on a regular basis.

 

[cdboard]

maybe not all were .COM