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June 10, 2014

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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.

New Quarterly Sales Reports from Domain Holdings Bring Additional Insight to Current Aftermarket Trends

Domain Holdings opened a new window into domain aftermarket sales trends this week when the Florida-based brokerage company released the first report in what will be a quarterly series of reports breaking down domain sales at the well-known firm co-founded by John Ferber and Chad Folkening

Domain Holdings published the report, covering the 1st quarter of 2014,  in infographic form on their website and also made it available as a .PDF file. While the company did not list prices paid for specific domains (most of their sales are subject to non disclosure agreements) they did reveal that total sales for Q1-2014 came in at $3,381,634, for an average of $36,756 per sale. Those high average prices can be attributed to the company having success in reaching end user customers. The report said that 76.25% of buyers were end users (those who buy domains for development or other corporate use such as branding or driving additional traffic to an existing site).

Some of the other interesting highlights from the report included:  

  • Two countries, the U.S. and China, accounted for over 86% of Domain Holdings sales (with the U.S. accounting for 53.6% and the rapidly growing Chinese market 33%.)

  • The domain Holdings brokerage team made over 10,000 phone calls and sent more than 60,000 emails in an effort to find the best end user match for the domains they represented.

  • That effort resulted in over 45% of sales being generated from new relationships ( buyers outside of the domain investment community.

  • Over 14% of sales were numeric domains (a category that is especially popular with Chinese buyers).  

  • Companies (especially those using domain in the .eu and .com.au TLDs) are upgrading to .com at a higher pace than before.

The report also address new gTLDs saying, "The introduction of new gTLDs have been more successful than many people expected with big brands spending significant dollars obtaining premium domains. Due to a new EAP (early access pricing model) offered direct by registries this demand has not yet been significant to brokers but requests are starting to come in for premium gTLDs. We expect gTLD brokerage sales will increase in Q2. 

The company said it is preparing for continued growth by hiring additional brokers, investing more in their technology and website as well as further  education for staff members.

(Posted May 16, 2014) 


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