Forbes.com just posted an article entitled: “Get Your Internet Domain Now“.
The article citing a Sedo.com report, saying that the average cost of a domain on Sedo’s reseller platform is up to $2,808 up from $2,049 a year ago.
The article widely quotes Nora Nanayakkara, Director of Business Development at Sedo, who says in part:
“Companies are rushing to buy generic domains to capitalize on Internet searches without the need to spend enormous amounts of money on expensive online marketing campaigns”
“Companies are cutting down on things that are hard to measure and that can prove quite expensive. Whereas domain names are increasing their online presence and strengthening their brand online”
A nice article for the industry and bang on.
As we are seeing in our inventory, we had our best month of the year in June and July is off to a bang for us as well.
Too bad this paragraph is wholly inaccurate:
“Domain registries soared during the 90s dotcom boom. By 1999 domain sales service register.com was raking in $6.6 million of sales; but the bubble burst after investors lost their nerve following Microsoft ( MSFT – news – people )’s anti-trust lawsuit, sinking the domain market. The market rallied in 2006 after investors started selling advertising space on vacant domains, and at the end of 2008, domain name regulator Icann allowed web users to purchase any web address they want.”
Andrew
Can’t expect too much from the mainstream press.
Moreover calling it a buyers market while reporting that prices are increasing so you better get that domain now, doesn’t make too much sense either.
Still better story on domaining than TechCrunch last night.
It goes to show that once you are on the “inside” like we all are, and understand the industry totally, upon looking back out how everyone else looking in is literally almost always wrong.
So applying that logic, it shows that you can’t believe a single damn thing you read anywhere. You must make decisions yourself because nobody is to be trusted.
“Can’t expect too much from the mainstream press.
Moreover calling it a buyers market while reporting that prices are increasing so you better get that domain now, doesn’t make too much sense either.”
—
MHB,
Actually it was Nora Nanayakkara who said it’s a buyer’s market not the
Reporter.
“‘Prices are still lower than during the boom but this is pretty much a buyers’ market,” said Nora Nanayakkara'”
Patrick
You are correct.
Still doesn’t make sense if its a buyers market that prices are moving higher.
Mike,
The assumption is that prices will go up at an even higher clip than it is now.
That’s not inaccurate to assume.
In that case, it’s definitely a buyer’s market.
Right. Nora’s comment is correct, it was just placed in the article awkwardly, which juxtaposed against the prices being higher.
“Still doesn’t make sense if its a buyers market that prices are moving higher.”
MHB,
Right. It doesn’t really make sense.
From reading the article I believe Nora Nanayakkara referred to this as
a Buyer’s Market because domain prices, although higher than last year,
are still not near the peak they were during the boom years thus creating domain buying opportunities before prices really rise.
At least that’s how I make sense out of her comments. 🙂
He is talking about an average price. A fictitious example might explain it could be buyers market.
Year 1
100 domains sold for $ 200 each.
1 domain sold for $1 million.
Average price for year 1 = 1020000/101 = $ 10099
Year 2
100 domains sold for $ 100 each.
1 domain sold for $2 million.
Average price for year 2 = 2010000/101 = $ 19900
Average price of year 2 is higher than year 1 but still it is buyers market because most of domains were sold for less (100 domains for $100 each in year 2 vs 100 domains for $200 year 1)
Great to see Nora Nanayakkara, Director of Business Development at Sedo doing this.
She is trying to become involved at ICANN too, right?
It is great that Sedo are helping the industry like this.
@ Martin – not ICANN. She went for Nominet. Not sure if she won, election was yesterday
Michael nice to hear July moving well, do you have an average selling price available ? Are you popping them out for $1000 or $5000 ? Thank you
Dot
After the month is over I will tally it up.
The lowest we sell domains for is $2,500