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GoDaddy 2019 aftermarket domain trends and NamesCon keynote

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This is the 2019 Namescon keynote by Paul Nicks, V.P. of GoDaddy’s Aftermarket. This year the data focuses on acquiring domains that have a better chance of selling on the aftermarket. The presentation releases a plethora of data around what sold last year, 2018, on the GoDaddy domain aftermarket. Some data include highlights what the global market looks like for domain sales, what the average sales price for a domain name is by region, and what TLDs (Top Level Domains, e.g. .com, .net, .org) sold and how they performed vs. last year.

This presentation additionally explains what characteristics in a domain provided the best sales velocity last year. This includes datalike the number of characters in a domain and how it impacts the domain’s sales velocity and the average purchase price vs. the average sales price on these particular domains. Using this data coupled with an example of a typical domain investor, there is a hypothesis of the average time it will take someone using these best practices to see a return on investment.

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GoDaddy 2019 aftermarket domain trends and NamesCon keynote

  1. 1. Domains Trends & Insights NamesCon Global 2019 Las Vegas, NV Copyright© 2018 GoDaddy Inc. All Rights Reserved. January 28, 2019
  2. 2. Copyright© 2018 GoDaddy Inc. All Rights Reserved.2 2018 Trends / 2019 Thoughts
  3. 3. YoY Sales Growth was Significant driven by increased demand Copyright© 2018 GoDaddy Inc. All Rights Reserved.3 Sales* +41% Inquiries +29% *Gross sales of aftermarket domains from 3rd party inventory
  4. 4. International Sales Accelerating Copyright© 2018 GoDaddy Inc. All Rights Reserved.4 47% 87% 56% 60% *Gross sales where we can determine buyer location
  5. 5. Consistent Global ASP Copyright© 2018 GoDaddy Inc. All Rights Reserved.5 $1,902 $2,251 $1,822 $1,993
  6. 6. Copyright© 2018 GoDaddy Inc. All Rights Reserved.6 Why Should I Care?
  7. 7. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Domain Investing is Not “One Size Fits All”
  8. 8. Copyright© 2018 GoDaddy Inc. All Rights Reserved. High Volume: Reg Fee or Closeouts, ASP $300-$500 High Value: $2,000+ Acquisition Cost, ASP $20,000+ Sweet Spot: $30-$60 Acquisition Cost, ASP $2,000-$5,000
  9. 9. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Set a Goal, Then Work Backwards
  10. 10. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Meet Dominique
  11. 11. Dom’s Strategy Copyright© 2018 GoDaddy Inc. All Rights Reserved.11 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Domains in Portfolio $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Revenue • Buy 3-6 Domains Per Day • Average Acquisition Cost $50-$75 • Price For $2,500 - $3,500 ASP • Optimize For 1% Annual Sell Through
  12. 12. Copyright© 2018 GoDaddy Inc. All Rights Reserved.12 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 1 2 3 4 5 6 7 8 9 10 Annual Sales Annual Cost Dom’s Break-Even Analysis Year 6: $98k Margin
  13. 13. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Data is Your Friend!
  14. 14. SLDs between 5 and 14 characters showed higher demand and value Copyright© 2018 GoDaddy Inc. All Rights Reserved.14 0% 2% 4% 6% 8% 10% 12% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 % of Revenue and Units % of Units % of Revenue
  15. 15. Shorter = Higher Average Sales Price Copyright© 2018 GoDaddy Inc. All Rights Reserved.15 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Avg Sale Price by SLD Length (all TLDs)
  16. 16. Customers buy 2-word domains far more than 3+ Copyright© 2018 GoDaddy Inc. All Rights Reserved.16 0 1 2 3 4 5 6 7 8 10 15 Top Keywords: Home Group Life Health Coin Go 72% 19% 3% Top Prefixes: The My Your “I”
  17. 17. .com dominates sales charts, other TLDs picking up Copyright© 2018 GoDaddy Inc. All Rights Reserved.17 TLD % of sales ASP YoY Unit % .com 92.4% $2,268 24% .org 2.6% $2,211 10% .net 1.5% $1,589 -11% .co 1.4% $6,779 -23% .io 0.4% $3,143 65% .ca 0.2% $2,698 9% .us 0.2% $753 29% .co.uk 0.1% $1,244 61% .me 0.1% $2,392 35% .tv 0.1% $2,805 8% 92.4% 2.6% 1.5% 1.4% 0.4% 0.2% 0.2% 0.1% 0.1% 0.1% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% .com .org .net .co .io .ca .us .co.uk .me .tv TLD as a % sales
  18. 18. Top ccTLDs and gTLDs Copyright© 2018 GoDaddy Inc. All Rights Reserved.18 Top 7 ccTLDs (by unit) ASP .co $6,779 .us $753 .co.uk $1,244 .ca $2,698 .com.au $2,552 .de $2,713 Top 6 gTLDs (by unit) ASP .app $1,218 .xyz $924 .club $1,991 .life $1,337 .shop $2,411 .online $2,452
  19. 19. Copyright© 2018 GoDaddy Inc. All Rights Reserved.
  20. 20. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Auctions Domain Name Aftermarket Criteria: • .com • 5-14 characters • Two Words • >$2,500 Valuation
  21. 21. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Auctions Domain Name Aftermarket Domain End Date Final Price Valuation DownloadShare.com 1/13/18 $49 $2,928 OrangeLiving.com 1/13/18 $133 $2,658 IrelandDirect.com 1/10/18 $163 $2,837 JustSurplus.com 1/11/18 $84 $2,599 AdultMix.com 1/13/18 $30 $3,198 ReadyPharma.com 1/14/18 $45 $2,570 ContentLife.com 1/12/18 $22 $2,660
  22. 22. Copyright© 2018 GoDaddy Inc. All Rights Reserved.
  23. 23. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Optimize Listings for Maximum Exposure Price to Sell Let the Pros Handle Your Leads Optimize Listings for Maximum Exposure Price to Sell Let the Pros Handle Your Leads
  24. 24. List for maximum exposure List in one place at Afternic, sell everywhere. Copyright© 2018 GoDaddy Inc. All Rights Reserved.24 70,000,000+ live searches per month
  25. 25. Pricing 25 • 59% of sales were within $1000 of GoDaddy Appraisal Value • 89% of sales were within $2000 of GoDaddy Appraisal Value Copyright© 2018 GoDaddy Inc. All Rights Reserved.
  26. 26. Branded Lander 26 • GoDaddy Name Instills Trust • Professional Brokers • Selling is About Understanding and Advising Copyright© 2018 GoDaddy Inc. All Rights Reserved.
  27. 27. Copyright© 2018 GoDaddy Inc. All Rights Reserved. 20% Higher Close Rate when we make contact in first 24 hours of inquiry 46% Higher Close Rate when engaged by phone
  28. 28. Value of “For Sale” Banner Copyright© 2018 GoDaddy Inc. All Rights Reserved.28 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Month13 Month14 Month15 Month16 Month17 Month18 Month19 Month20 Month21 Month22 Month23 Month24 Revenue Added “For Sale” Banner
  29. 29. Copyright© 2018 GoDaddy Inc. All Rights Reserved. Takeaways: • Domain Sales are Accelerating • Full Time Investing is Possible (Even Today) • Stay Short (5-14 Characters) & Two-Words • Optimize for <$150 Acquisition & >$2,500 Value • List on Afternic • Use a Sales Lander Download Full Presentation X.CO/NamesCon19
  30. 30. Copyright© 2018 GoDaddy Inc. All Rights Reserved.30

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