Blogs about how you can best sell your domains or stories about how you may have sold or bought a domain in the past.

The Big Issues in the Domain Industry - Part 1

So what are the domain industry’s really big issues? What should we be driving innovatively to solve and what issues are way beyond the scope of short term solutions?

Escrow.com

When I think about the really big issues in the domain industry I find that I’m forced to reflect on the four primary business models associated with domains:

1.       Selling domains like stock items
2.       Selling high value domains
3.       Traffic monetisation
4.       Development

Selling domains as stock items is all about increasing the sales turnover of low value domains (sub $2K) in your portfolio. This is similar to a supermarket which operates on low margins wanting to increase the throughput of products being sold.

When you look at the incumbents in this market they have all been trying to increase the demand. This has largely been achieved through increasing the breadth of their distribution networks (ie. Registrars) so their inventory is exposed to a larger audience.

I see a number of innovations that centre on pricing that can be explored in this market and I will discuss two of them in this article. To date, the feedback from domain marketplaces has been that if a domain is priced it’s more likely to sell. This seems to make sense as buyers like to know what they are about to pay for domain rather than “make and enquiry”.

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mgilmour
Not a problem.....I hope I helped you out.
20 November 2017
mgilmour
XR....interesting question. The first thing to appreciate is any new gTLDs with reserved priced domains are guessing the value. Ul... Read More
22 November 2017
mgilmour
The problem that many domain investors wrestle with is end users know the price paid for the domain (ie. Reg fee) and feel anythin... Read More
22 November 2017
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Domain Sales Don’t Add Up

I was crunching some numbers today on the domain sales market and a number of things just didn’t add up for me. It would appear that as an industry we are going backwards….which should be a little bit of a concern.

Escrow.com

The first thing I wanted to do was try and dimension the size of the domain sales market. I decided to start with the estimated size of the Sedo marketplace as they quite regularly published their numbers. I was more interested in the number of domains sold and also proportions of the size of each sale.

After some mathematical magic, I came to an estimated sales volume of just shy of $37m for 2016…..I think this is a little low as some of the larger outliers will push the number up to around $50m. If there’s anyone from Sedo that can confirm or deny this number that would be awesome!

The next question I asked was what proportion of the total market does Sedo have? Sedo actually sold around 99 of the top 304 domain sales for 2016….which suggests about 32% of the domain market. This seems a little on the high side to me.

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Unlocking Value Through BIG Data

In this article, I’m going to let you into a little secret. You may not have heard of anyone else approaching domains the way I’m about to outline but in my opinion, it’s the future. These ideas are what keep me so entranced by domains.

Escrow.com

If you are wanting to extract the maximum amount of value from your domain names then the answer is in the data. It really doesn’t make a difference whether you are a buyer, seller, developer or traffic monetizer, the key to generating additional revenue always comes back to the numbers.

As I’ve spoken at conferences or written different blogs I’ve been accused of many things but there has been one consistent accusation that I’m actually quite proud. “You’re always banging on about the numbers!” I love my numbers and more than that, I love trying to interpret what they are telling me.

Over the past 10 years, my ParkLogic business partner and I have continued to be fascinated by domain names because the data tells so many different stories. We’ve taken this to the extreme level by tracking around 250 different metrics for every domain on our platform each day. This leads to hundreds of millions of data points that can be algorithmically analyzed and trend curves plotted over time to see where the next seam of gold will come from.

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Wolftalker
Interesting as always Michael. Congratulations on a good piece.
06 July 2017
mgilmour
Thanks for that!
06 July 2017
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Video - Domain Sales

This is the third video in the 10th Anniversary of Whizzbangsblog. In this video explore the topic of domain sales and how you can increase your own domain sales.

Escrow.com

I've sold a lot of domains over the years and in this video I discuss a number of techniques I've found that greatly assist in selling. I also begin to open up my thoughts on the future of domain sales and more importantly how to better price domains.

I hope you enjoy this video and I would encourage you to leave any comments and questions for me to answer.

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mgilmour
Creating an artificial purchase point doesn't really work with really big deals where a lot of people are involved in the final pu... Read More
01 May 2017
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A Simple Way To Sell More Domains

Domain marketplaces are rewarded on a commission basis for bringing buyers and sellers together and doing whatever they can to ensure a transaction occurs. What domain investors need to appreciate is that a marketplace gets paid a commission on a sale transaction, whether it’s the individual investor’s domains or not.

Escrow.com

What am I getting at here. One of the most valuable assets that a domain has is traffic. In fact, there is a whole business model of monetization that is based upon the fact that advertisers love the traffic so much they are willing to pay a lot for it.

Ask yourself this question, “How much did a marketplace pay for your domains traffic?” Each day you are sending red hot leads into the marketplaces and yet most of those leads go to buying other people’s domains. My second question is, “What commission did you received on those sales?” Here’s the answer, zero.

The counter argument to this is the commission levels are set by taking into account the traffic. I don’t buy into this argument because if that was the case there would be differing commission levels based upon traffic and this does not happen.

So how do you get around this problem? The best solution would be to add all your domains to the various marketplaces so that they can receive offers via everyone else’s traffic. Then build a website that features your own domains.

On the individual domain pages have links that allows the buyer to purchase via each of the various marketplaces or via an Escrow buy link (then you'll be protected in the sales transaction).

All the sales links on your domain parked pages should then point to a page that features the domain inside your own website. This will then give the buyer the scope to easily view your other domains you have for sale that they may wish to purchase.

What you’re trying to do here is leverage your own traffic to help sell more of your own assets. If you don’t have any traffic then I wouldn’t bother with this strategy but if you do then you’d be crazy not to try it out.

I should state that I don’t have anything against the domain marketplaces…..in fact, I think that on the whole they do a good job. If they have created a large opportunity in their business models that can be exploited, then why wouldn’t you take it?

On the other hand, there is an opportunity for one of the marketplaces to break ranks and to pay a referral commission to the domain owner that originated the lead. Now that would shake things up a bit!

Battleframe

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