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2011 Q2 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 Q2 Sedo Domain Market Study

  1. 1. Domain Market Study2nd Quarter 2011
  2. 2. Sedo‘s All-Time Top 3 Sales At of the end of Q2 2011, Sedo’s global Domain Marketplace now boasts over 18 million domain names listed by more than 1 million members worldwide. In Q2, Sedo’s Domain Marketplace saw close to 18% $25,000,000 in global sales and maintained stable average sales prices across all TLDs. Even considering the record-breaking sale of in $2,500,000 Q4 2010, overall sales numbers in Q1 and Q2 2011 remained consistent with previous quarters and growth trends. $3,000,000 51% The notable sale of for $2,500,000 during Q2 also marks Sedo’s third-highest published domain sale of all time (following last year’s © Sedo 2011 sale of at $13,000,000 and Sedo’s 2006 brokering of for $3,000,000). Highlights of what you’ll find inside our complete Q2 Domain Market Study: $13,000,000 How .com sales compare to other TLDs in Q2, as compared to previous quarters Which sales channels buyers tend to prefer Breakdowns and evaluations of average and median sales prices© Sedo, 2011 ::
  3. 3. Q2 2011 TLD Sales 1. Division of Generic Top-Level Domain (gTLD) and Country Code Domain (ccTLD) Sales for Q2 2011 Accounting for 52% of all Q2 TLD sales, .com remained the marketplace’s dominant extension. For other gTLDs, .net came in a distant second with 6% market share, demonstrating the continued strength of .com as a key 18% investment choice for business owners and domain portfolio holders alike. Overall in Q2 2011, .de continued to be the most frequently traded ccTLD 6% © Sedo 2011 on the marketplace, accounting for 18% market share, while and 52% .eu each accounted for 6% of the market. At 18%, .de was also the second most frequently traded TLD, surpassing gTLDs such as .net, .org and .info. 6% .CO Maintains Position as a Top TLD 6% The pie chart to the right shows a breakdown of domain extensions (gTLDs and ccTLDs) that contributed to at least 1% of the overall 5% transaction volume of Q2 2011. TLDs that did not contribute at least 1% have been excluded from this chart. The chart also illustrates the staying power of .co, which has maintained similar sales figures to 3% both .nl and .es since its debut on the top TLD list in Q1. While still a 2% 1% 1% small percentage of overall domain sales, the continued presence of .co as a top TLD marks it as a valuable contender for investment and as a valid alternative to .com and other top gTLDs. .com .org .de .info .net .co .nl .eu .es© Sedo, 2011 ::
  4. 4. Sales Volume in $ $40,000,000 $35,000,000 $30,000,000 $25,000,000 $24,578,341 $20,000,000 $36,995,239* $21,568,780 $21,273,575 $20,507,143 2. Sales Growth $15,000,000 As seen in previous quarter over quarter comparisons, sales in Q2 2011 remained predominantly consistent with those in previous quarters, with $5,000,000 © Sedo 2011 the exception of Q4 2010, which saw a dramatic increase due to several $0 high-value sales. Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 The graph to the right shows trends and growth in sales volume per * sold in this quarter. quarter. With the record sale of removed from the overall volume of Q4 2010, Q2 2011 represents the strongest quarter Sedo’s Number of Domains Sold Domain Marketplace has seen in over a year. These recent figures 12,000 illustrate the steady, if not upward, trend in domain sales following 2008’s economic downturn. 11,500 11,146 11,000 10,608 10,600 10,500 10,326 10,085 10,000 9,500 © Sedo 2011 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011© Sedo, 2011 ::
  5. 5. Q2 2011 Division of Sales Type 7% 3. Division of Sales Type 5% The chart to the right displays a breakdown of the various channels used 5% for domain sales through Sedo’s Domain Marketplace during Q2 2011. The Offer-Counteroffer channel remained the most popular, accounting for 41% 41% © Sedo 2011 of all sales. This decrease of 2% from Q1 2011 shows that buyers may be looking to other sales channels, such as Buy Now listings. 15% Domains purchased via Buy Now listings (domains listed by sellers with fixed prices) resulted in 27% of all sales in Q2, remaining consistent with the previous quarter. The continued strength of Buy Now domain listings indicates that a quick, easy purchase process is still an attractive prospect 27% to potential domain buyers. Marketplace Auctions have reclaimed their position as the third most popular sales channel with 15%, illustrating an increased interest in domain auctions among sellers who have received offers. Offer-Counteroffer Auctions Fixed Price Brokerage Marketplace Auctions External Transfers© Sedo, 2011 ::
  6. 6. Domain Sales per Price Category 2% 1% 4. Domain Sales per Price Category At 49%, virtually half of all sales through Sedo’s Domain Marketplace 4% during Q1 2011 were $500 or less. This price category saw a decrease in Q2 2011 to 45%, indicating an overall increase in the value of individual 8% domain transactions this quarter on Sedo’s Domain Marketplace. Domain sales priced at $5,000 and under were the most frequent, accounting for 48% market share. Domain sales in a price range of more 45% © Sedo 2011 than $50,000 accounted for only 1% of the market. The chart to the right reinforces the fact that most domains can safely 40% be valued at 2- to 3-figure amounts, with few exceptions. It also clearly indicates that domains are an asset within the reach of business owners and investors, no matter how large or small their budgets may be. 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 ::
  7. 7. Average Sales Price per gTLD in $ 5. Number and Price Comparison (gTLDs) The average price of .com domains in Q2 2011 reached $3,114, a 20% Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 increase over Q1. It is important to note that, average .com sales prices for Q2 2011 were also higher for every quarter over the last year, excluding .com 2,401 2,511 5,753 2,595 3,114 the record-breaking sale of There was also a notable increase in .net 1,673 1,675 1,856 1,584 1,611 both .net and .info sales prices, with other major gTLDs holding strong not far behind. .org 1,135 2,736 1,552 1,423 1,384 © Sedo 2011 .biz 694 1,054 582 1,745 1,275 .info 638 926 765 977 1,005 Average Sales Price per ccTLD in $ 6. Number and Price Comparison (ccTLDs) Average sales prices remained relatively stable in Q2 2011 as compared to Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 previous quarters. Due to a confidential, record-breaking sale, the .es extension had the highest average price at $3,540, followed by .fr at .de 1,383 1,449 1,519 1,263 1,430 $3,473. Although ccTLDs are a lower proportion of marketplace sales, it is notable that premium ccTLDs maintain a strong and consistent value from .at 802 1,057 760 1,688 1,130 quarter to quarter. .fr 2,466 4,819 8,182 2,466 3,473 .es 1,725 1,093 1,502 2,031 3,540 © Sedo 2011 1,999 1,532 2,030 1,610 1,824© Sedo, 2011 ::
  8. 8. Median Domain Price per gTLD in $ 7. Median Sales Prices Median sales prices for gTLDs remained fairly consistent quarter over Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 quarter. However there was a significant increase in Q2 2011 median sales prices for gTLDs across the board. The .com extension, for example, hit a .com 510 522 650 595 700 median price of $700, an increase of nearly $200 over the same quarter of .net 581 588 686 589 600 the previous year. .org 530 589 697 537 550 © Sedo 2011 .biz 380 500 317 405 429 .info 402 431 420 442 496 Sedo‘s Top 10 Public Sales 8. Top 10 Public Sales Q2 2011 was a strong quarter for .com domains. Sedo’s Domain Market- Domain Sale Price place saw the impressive brokering of for $2,500,000, and $2,500,000 other .com domains accounted for nine of the top ten sales of the quarter. €300,000 $352,500 $220,000 $215,000 €80,000 $100,000 © Sedo 2011 $90,000 $85,000 $80,000© Sedo, 2011 ::
  9. 9. Performance in Q1 and Q2 2011 in $ 9. The Continued Popularity of .co and .me Average Average Median Median After a solid start in the first quarter of 2011, two new Top Level Domains in Q1 in Q2 in Q1 in Q2 © Sedo 2011 - .co (the ccTLD for Colombia) and .me (the ccTLD for Montenegro) - held steady in Q2 2011. Despite being country code TLDs, .co and .me func- .co 1,205 3,297 310 525 tion as desirable alternatives to generic Top-Level Domains (gTLDs), pre- .me 1,201 976 210 219 dominantly in English-speaking countries. While the average prices of .co and .me domains were almost the same as those in Q1 2011, .co boasted an increase in average sales price to $3,297 during Q2. The .co extension also continued to show growth with a median price ($525) that was sub- stantially greater than that for .me domains, and more than $200 higher than its median from the previous quarter.© Sedo, 2011 ::
  10. 10. 10. Conclusion Top 10 Categories By comparison with Q1 2011, Sedo’s Domain Marketplace experienced increases across the board, boosted by high-value sales such as 1. Software Given ICANN’s approval of new gTLDs applications, and the increase in the average sales prices of .co and other ccTLDs, it seems 2. Religion and Spirituality clear that Sedo’s Domain Marketplace will see an increase in the market 3. Regions, Country, Cities share for many new TLD sales over the coming quarters. 4. News and Media Finally, Sedo’s recent launch of the first domain name price index, IDNX, further validates the value of domain names as an economic indicator and 5. Employment as a solid investment for both business owners and individuals, and we 6. Consulting look forward to seeing how the domain industry trends in Q3 based on 7. Domain Industry this invaluable new tool. 8. Insurance 9. Lodging © Sedo 2011 10. Humor© Sedo, 2011 ::