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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Guest — Guest
You have just described the sad reality for many (if not most) domainers. There has been a race to the bottom in aftermarket price... Read More
18 August 2017
Guest — The Hard Cold Truth
Great read. And yes you're right. Domaining is an awful business model. For starters the assets are incredibly illiquid. Buyers fo... Read More
28 August 2017
Guest — Lyda Dowd
Recently, I came across a domain marketplace selling best i.e. premium domains like Coins.ca, DirectFly.ca, EWomen.ca etc. Went th... Read More
10 January 2018
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