2011 Q3 Sedo Domain Market Study

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Each quarter Sedo releases a Domain Market Study, which explores in depth trends and conditions in the online domain marketplace.

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2011 Q3 Sedo Domain Market Study

  1. 1. Domain Market Study3rd Quarter 2011
  2. 2. At of the end of Q3 2011, Sedo’s Domain Marketplace went through a number of improvements, including updates to our homepage, a revamp Highlights include: of the Parking Reports section of our customers’ accounts, and the launch of the first Domain Name Price Index, IDNX. On August 1st, the biggest change in Sedo’s 10-year history took place when we relaunched the mar- How .com sales fared against other TLDs in Q3, as compared to previous quarters ketplace. The performance of Buy Now versus Offer- Among all these changes, Q3 2011 saw a total of 9,778 sales globally, Counteroffer domain name listings amounting to more than $19,000,000 in sales volume, and a median price of $1,974. Globally, Sedo’s biggest public sale was aktien.de for €500,000, Average and median sales prices for Q3 but 80% of sales revenue for the quarter consisted of confidential sales. The strength of ccTLDs in their local markets The highest .com sales were grid.com for $275,000, and republic.com at $200,000. Given the Q2 2011 sale of gambling.com for $2,500,000— Sedo’s third-highest sale ever—sales volume remained relatively consistent with the previous quarter. Take a closer look at the performance of the domain market and Sedo’s Domain Marketplace by reviewing our Q3 2011 Domain Market Study.© Sedo, 2011 :: www.sedo.com
  3. 3. Q3 2011 TLD Sales 1. Division of Generic Top-Level Domain (gTLD) and Country Code Domain (ccTLD) Sales for Q3 2011 2% 2% 1% The most frequently sold domain extensions during Q3 remained .com 3% and .de, but both saw slight changes in market share, with .com sales moving to 49% (a 3% decrease since Q2), and .de showing a 3% increase to 21%. The .net extension held steady as the second most frequently sold 4% gTLD, at 6% market share, and .co.uk was the second highest ccTLD with just 7% market share. 5% Overall in Q3 2011, the top 10 sold TLDs remained consistent with 6% © Sedo 2011 previous quarters. While newcomers like .co were less often traded, the increase in .de sales still shows that ccTLDs hold pride of place for 49% country- or language-specific use. 7% 21% .com .org .de .info .net .co .co.uk .nl .eu .es© Sedo, 2011 :: www.sedo.com
  4. 4. Sales Volume in $ 2. Sales Growth $40,000,000 When taking into account Sedo’s sale of gambling.com in Q2 2011, $35,000,000 sales for Q3 2011 remained relatively stable. As with Q3 2010, the graph sex.com to the right shows a slight decrease in overall sales growth in sales volume $30,000,000 during Q3 2011—often the case due to summer vacations—but with $25,000,000 record sales such as sex.com during Q4 2010 and gambling.com in Q2 $24,578,341 2011, the past four quarters have been strong for Sedo’s marketplace. $20,000,000 $36,995,239* $21,273,575 $20,507,143 $19,303,083 $15,000,000 $5,000,000 © Sedo 2011 $0 Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 *sex.com sold in this quarter.© Sedo, 2011 :: www.sedo.com
  5. 5. Q3 2011 Division of Sales Type 6% 6% 3. Division of Sales Type The chart to the right shows a breakdown of the different sales channels 5% for domain sales through Sedo’s Domain Marketplace during Q3 2011. Although the Offer-Counteroffer channel remained the most popular, with 38% © Sedo 2011 38% of all sales, this represented a decrease of 3% as compared to Q2 and a total 5% decrease since Q1 2011. Marketplace auctions took third place 13% with 15%. Most notably, this quarter’s Buy Now sales accounted for 32% of all marketplace sales. With a higher sales velocity and a quick and easy purchase process, Buy Now domains are becoming an attractive prospect to domain sellers and buyers alike. 32% Offer-Counteroffer Auctions Buy Now Brokerage Marketplace Auctions External Transfers© Sedo, 2011 :: www.sedo.com
  6. 6. Domain Sales per Price Category 2% 1% 4. Domain Sales per Price Category The sales price per category breakdown has remained relatively steady 4% since the beginning of 2011, as demonstrated in the chart to the right. At 47%, nearly half of sales through Sedo’s Domain Marketplace during Q3 7% 2011 were $500 or less. In spite of a small decrease in the total number of sales this quarter, this indicates that domains listed in this bracket are always an attractive proposition to domain buyers. The majority of © Sedo 2011 domains in this price range are listed at fixed, Buy Now prices. 47% In total, domain sales of up to $2,500 accounted for 86% of Sedo’s marketplace transactions in Q3, and 93% were below $5,000. Just 39% 7% of marketplace sales were in the bracket above $5,000, indicating that the majority of domain marketplace sales still come in at 2- to 3-figure amounts. Domain purchases over $10,000, such as republic.com ($200,000) or aktien.de (€500,000), are usually for branding or large business purposes. up to $500 up to $10,000 up to $2,500 up to $50,000 up to $5,000 $50,000 and up© Sedo, 2011 :: www.sedo.com
  7. 7. Average Sales Price per gTLD in $ 5. Number and Price Comparison (gTLDs) A surprise candidate among generic TLDs saw its highest average price Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 in more than six quarters: .info domains peaked in Q3 2011 at an average price of $1,182. The .com extension retained the highest average price, .com 2,511 5,753 2,595 3,114 2,496 proving once again its staying power, although in line with the rest of Sedo’s Domain Marketplace, it saw a decrease in average price to $2,496. .net 1,675 1,856 1,584 1,611 1,430 .org 2,736 1,552 1,423 1,384 1,189 © Sedo 2011 .biz 1,054 582 1,745 1,275 1,122 .info 926 765 977 1,005 1,182 Average Sales Price per ccTLD in $ 6. Number and Price Comparison (ccTLDs) Much like Q2 2011, .fr and .es domains had the highest average prices, Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 coming in at $2,288 and $2,418 respectively. The .de extension showed a strong increase, most likely due to the high-value sale of aktien.de this .de 1,449 1,519 1,263 1,430 1,715 quarter. Most other ccTLDs remained consistent, although both .at and .co.uk gained in value. .at 1,057 760 1,688 1,130 1,142 .fr 4,819 8,182 2,466 3,473 2,288 .es 1,093 1,502 2,031 3,540 2,418 © Sedo 2011 .co.uk 1,532 2,030 1,610 1,824 1,880© Sedo, 2011 :: www.sedo.com
  8. 8. Median Domain Price per gTLD in $ 7. Median Sales Prices Traditionally the strongest median sales prices have remained those of the Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 three dominant gTLDs—.com, .net and .org—and Q3 2011 supported this trend. The .com extension had the highest median price, with $650, while .com 522 650 595 700 650 .net trailed behind with $550. However, .info showed its strength once .net 588 686 589 600 550 more, coming in with the third-highest median price, $519. This proves that a newer gTLD can still break into the domain market, even with strong .org 589 697 537 550 500 © Sedo 2011 competition from .com and its cohort. As the third-highest median price, .biz 500 317 405 429 448 .info has crept ahead of .org for the first time. .info 431 420 442 496 519 Sedo‘s Top 10 Public Sales 8. Top 10 Public Sales To the right is a list of the top public sales for Q3 2011. These sales are Domain Sale Price those that can be publicly disclosed; 80% of revenue from Sedo’s Domain aktien.de €500,000 Marketplace sales is private and so those sales are not listed. grid.com $275,000 republic.com $200,000 3gstore.de* €135,000 onlinedegree.com $120,000 zy.com $105,999 siteweb.com $100,000 © Sedo 2011 silvercoins.com $100,000 nbb.com $95,000 selfemployed.com $58,000 *website purchase© Sedo, 2011 :: www.sedo.com
  9. 9. 10. Sales by Category Top 10 Categories All domain name sales through Sedo’s marketplace are categorized, so that each quarter we can review the most popular categories for sales. The most popular in Q3 2011 was “Software”—perennially a well 1. Software performing category for domain sales—followed by “Religion and 2. Religion and Spirituality Spirituality”. 3. Employment Examples of “Software” category sales: cloudbackup.co.uk and freefileconverter.com 4. Consulting Exampes of “Religion and Spirituality” category sales: 5. Humor faith.tv and yomkippur.net 6. Regions, Country, Cities Lower down the list, some more unusual categories grew in popularity this quarter, such as “Humor” and “Books”. 7. Domain Industry 8. News and Media 9. Insurance © Sedo 2011 10. Books© Sedo, 2011 :: www.sedo.com
  10. 10. 11. Conclusion IDNX: The Domain Name Price Index By comparison with Q2 2011, Sedo’s Domain Marketplace has held relatively steady. Although traditionally, Q3 sales volume is lower than that of the other quarters of the year—as was the case during 2010—Q4 always sees an increase as the year comes to a close. The fact that domain © Sedo 2011 purchases are closely tied with the economy in general is something that is clearly shown in both the IDNX Domain Index and Sedo’s Market Study figures, both of which correlate to wider economic indicators. We look forward to a successful fourth quarter, and to seeing how both the marketplace and IDNX develop as we move into 2012. © Sedo, 2011 :: www.sedo.com

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