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May 13, 2015

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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.

DomainHoldings Reports 1Q-2015 Sales Jump 40% Over Same Quarter a Year Ago

DomainHoldings has released their latest quarterly report covering the 1st quarter of 2015. The year over year numbers are impressive with total sales jumping over 40% from the same quarter a year ago. In 1Q-2015 DomainHoldings booked over $4.75 million in domain sales compared to just under $3.38 million in 1Q-2014. The average price paid per domain also surged,  rising nearly 35% from $36,757 in the first quarter of 2014 to $49,522 (the highest number in the company's history) in the most recent quarter. 

That high price per unit can be attributed to the company's success in connecting with end users who are most likely to pay full market value for domains they want to build on. The report said nearly 65% of 1Q-2015 sales were made to end users.  

 

.Com domains accounted for 75% of DomainHoldings sales, followed by ccTLDs at a little over 8.33%. .Net/.Org were next at 6.25% with gTLDs at 3.12% and everything else lumped in an Others category at 7.29%.

The report noted, "The USA and China remain the largest two markets for Domain Holdings. In Q1, we saw a strong demand in numeric and letter domains from the Chinese market, particularly in the NL.com, LLN.com, and LN.com categories. Domain Holdings has also witnessed an increase in interest for .com brandable assets out of the Chinese investor markets. In Q2, we are expecting to see an increase in percentage and sales for China due to the recent increased demand for LLL.com assets."

Looking ahead to the rest of 2015 and beyond the report also predicted:

  • Domains in the LN and NL verticals will see a steady increase in value.

  • Market for gTLD will grow and sales for aftermarket premium gTLDs will increase.

  • New StartUp organizations, at Angel investment or Crowd-Funded level, will continue to gravitate to non-dot com extensions or a brandable company name for more favorable initial URL acquisition costs. Popular StartUp non-dot com extensions will continue to be .io, .co and .me.

  • Revenue positive StartUps in later round funding will continue to upgrade their domains to the preferred .com extension and unify their digital brands.

(Posted May 13, 2015) 


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