Sedo, issued its domain market study for the second quarter of 2013 today.
Sedo reported that domain name sales below $500, accounted for 53% of sales.
Domains priced between $501 and $2,500 accounted for 35% of sales and only 7% were in the $2,501-$5,000 price range.
So basically 95% of all sales where $5,000 or under.
During the quarter, Sedo powered 9,589 transactions with a mean average price of $1,830 across all sales and a median price of $551 and a total sales volume of $17.5 Million dollars.
5% of all the 9,589 transaction or around 450 of them, Sedo acted only as escrow agent after a buyer and seller found each other and negotiated their own sales price.
Compared to the 2nd quarter of 2012 (psf) Sedo generated the same amount of money, $17.5 Million in the 2013 quarter but 2013 saw about 500 less transactions.
“.Com domain names accounted for 53% of sales and the average price for a .com domain was $1,937.
“.Org and .net domains have taken a steep decline in recent quarters, with .net falling to $1,256 from a peak of $2,054 in Q4 2012, and .org falling to $1,103 from a peak of $1,653 in the first quarter of 2013.”
“Buy Now sales accounting for 42%, Offer-Counteroffer 36%, Auctions 12 %; Brokerage 5% percent and External Transfers” meaning transactions where Sedo only acted as escrow agent were 5%.
“Sedo powered transactions of 118 different domain extensions in Q2 2013, setting a record for the number of TLDs traded in one quarter.
“This is an 8% increase from the same quarter a year earlier where 109 different extensions were traded, and a 250% increase from the 33 extensions that were traded during the twelve months of 2003, when Sedo began reporting the figure.
“Further supporting this observation, the .co extension was among the top ten most frequently sold TLDs on Sedo’s marketplace for the second consecutive quarter.
“In addition, the report shows a continued global expansion in the market with Sedo buyers coming from 160 different countries and Chinese dot-coms accounting for two of the top ten valued sales.
“Additional highlights from Sedo’s Q2 2013 Market Study:
“.De was the second most highly-traded extension accounting for 15% of transactions, followed by .net and .co.uk which each accounted for four percent.
“The three highest-valued sales of the quarter were yinhang.com for $300,000, moms.com for $252,000 and elend.com for $140,000. In addition the Chinese domain juxin.com sold for $66,666, as the ninth-highest sale of the quarter, showing continued global expansion in the market.”
As for the future, Tobias Flaitz, Sedo’s CEO issued a pretty bleak statement for domain investors:
“We’re going to see the market flooded with hundreds of new domain extensions in the coming months and years, and our data shows that investors and corporations are evidently warming up to the idea of using different extensions,”
“It will take time and effort before we see mass adoption of new TLDs, and Sedo is contributing its part to raise awareness through global marketing, sales efforts and partnerships with applicants. The fact that more extensions than ever are being traded and successfully used for business is a promising development.”
Of course that mean as we have been talking about for a few years new gTLD’s will led to a lot more choice for end users and pending launch is already effective the sales price of .net’s and .org’s. We at TheDomains.com long ago said that .Net domains would be a greatest risk once the new gTLD’s roll out
“marketplace is preparing for the arrival of new generic Top Level Domains (gTLDs),”
No – this is more a reflection of a middle class that is shrinking – and with less money – because that is what all domain sales relate to = small to medium size business and expansion.
“marketplace is preparing for the arrival of new generic Top Level Domains (gTLDs),”
No,New browser technology is changing everything………..
> We’re going to see the market flooded with hundreds of
> new domain extensions in the coming months and years,
Only things that are rare are valuable. Flooding the market with anything, be it diamonds or Lamborghinis, only lowers that things value. A grain of sand on a beach has no value at all. That’s where we’re headed with the coming “flood” of “new domain extensions”.
> and our data shows that investors and corporations are
> evidently warming up to the idea of using different
> extensions
Wishful thinking…
I was always a bit suspicious that sedo is gaming it’s report but this one proves it.
How is it that “53% of Sales $500 Or Under” but the median price is $551???
If “53% of Sales $500 Or Under” then the median price should have been less than $500. Some or all of this data is corrupt.
What a bunch of crap…
Instead of trying to figuge out why their sales are shrinking they are already blaming the new gTLDs.
Sedo has completely lost it.
The fact is that only the small to medium sales happen at Sedo. All the big sellers have left Sedo.
@BrianWick, you nailed it. that is the trend that we all must be aware in the coming years.
BrianWick has a point, but those who are in the “shrinking middle class” might as well not even try, because running a business is far more expensive than buying a decent domain name. There are still people with money out there… a lot of them. But then I live in Silicon Valley, so I have a warped sense of reality when it comes to money…