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August 27, 2012

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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

Despite the Recession, Third Quarter Domain Sales Equal Year Ago Levels and Rise 15% From the Previous Quarter

I've been scrambling today, getting the decks cleared before heading out in the morning for Key West, Florida where the SedoPro Parner Forum will be held later this week at the Casa Marina Resort. The event, that runs Wednesday through Friday, returns to the U.S. for the first time since the summer of 2007 when it was held at the Mohonk Mountain Resort in New York state. People who were there still buzz about that event and I'm sure this one will be something special as well. The meeting begins Wednesday evening and I'll have daily highlights for you in this column.

Before leaving I had to put the finishing touches on our latest free monthly newsletter that goes out to opt-in subscribers (it is also available online now). The lead item in the newsletter is a breakdown of domain sales for the just concluded 3rd quarter of 2009. As we went through the summer months that comprised the third quarter, I had the feeling that despite the obstacles presented by the current recession, aftermarket sales (unlike PPC revenue streams) was managing to hold their own. When I ran the numbers today they confirmed that gut feeling.

In addition to matching reporting sales from the same quarter a year ago, 3Q sales enjoyed a double digit rise from the previous quarter this year. In the 2nd 

The domain aftermarket overcame recession obstacles in 3Q-2009 to match last year's 3Q performance.

quarter of 2009 a total of $21,108,655 in domain sales were reported to us. In the just concluded 3rd quarter, that number rose to $24,361,644 - an increase of 15.4%

That $24,361,644 for 3Q-2009 is almost identical to the total for 3Q-2008 which came in at $24,542,784, a year over year decline of less than 1%. Keep in mind that most of last year's third quarter played out before news hit in late September 2008 that the world was facing a historic financial crisis. Just about all markets have been trying to overcome a reluctance on the part of consumers to spend money ever since so I believe that equalling the '08 figure in today's environment is a positive sign.

That is not to say that things are completely back to normal of course. While the total sales volume for 3Q-2009 equaled the same quarter in 2008, we did see a slight slippage in the median price paid for domains (the median is the point at which half of all reported sales were higher and half were lower). In 2Q-2008, the median price is our database was $2,788. In 3Q-2009, the median was down 8% to $2,563. That indicates that overall, buyers are paying a bit less per domain than a year ago.

You can see more sales data details in our newsletter including a year-to-date comparison of sales for the first three quarters of this years versus the first three of 2008.

(Posted Oct. 5, 2009)

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