In the final session from the TRAFFIC Conference some blockbuster statements which indicate a huge amount of big dollar domain sales have gone unreported and the total amount of domain sales are way under-reported.
Andee Hill from Escrow.com had a pretty eye opening statement at the Meeting of the Chiefs. The Must-Attend T.R.A.F.F.I.C. Seminar, that the total dollar volume of domain sales that get processed through Escrow.com, greatly exceed the amount that gets reported saying; “we close in some weeks more dollars in domain sales than what other company’s report in sales for the entire year.’
Ron Jackson of DnJournal.com, reported today that $25 Million in domain sold in the last quarter.
Of course that amount is based on publicly reported sales.
However when asked by Rick Schwartz what percentage sales actually were processed through Escrow.com, compared to the reported amount of $25 Million dollars, Ms. Hill answered after a lot of hesitancy, two to three times that amount.
Gregg McNair of Igloo.com said that the bigger the sale the less likely it is to go through any escrow service.
“Very often when you get into the millions buyers and sellers don’t want another set of eyes looking at the transaction no matter how beautiful those eyes are”, said Mr. McNair to Ms Hill
That sentiment was seconded by Adam Dicker adding that most of his bigger dollar sales were handled directly through lawyers without the use of an escrow service.
With Escrow.com saying that they personally handle more transactions in terms of dollars in domain sales in one week then others (being Sedo and Afternic.com) report for the year, combined with Mr. McNair and Mr. Dicker’s statements that most of the larger dollars sales aren’t even handled by escrow services, means that tens of millions of dollars a quarter in domain sales are taking place outside of reported sales.
On a Final Note the question was asked if anyone on the panel knew of sales higher than Sex.com which sold for $14 Million dollars, Andee Hill from Escrow.com said she has seen one over $20 Million and Gregg McNair said he knows of higher sales than Sex.com as well.
As we look at the Sedo and Afternic/Godaddy reported sales every week we see few six figure sales and even mid-five figure sales are giving the indication that the premium domain name market is weakening however it seems the high end domain market is stronger than ever, we are just not hearing about those sales.
Paul Nicks from Godaddy.com also added a huge amount of the sales take place under $1,000 also don’t get reported
Clearly the session was worth in and of itself the price of admission to TRAFFIC.