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The Lowdown



April 3, 2008 Post

Here's the The Lowdown from DNJournal.com! Updated daily to fill you in on the latest buzz going around the domain name industry!

Compiled by Ron Jackson (Editor/Publisher)

 

As a follow-up to yesterday's post about the first quarter of 2008 reaching a new high for domain sales I took a look at another metric today after a commentator at Michael Berken's blog wondered if the average selling price of individual domains had done down even though total volume went up. I just ran through our sales database again to find out.

In the first quarter of 2008, 3,764 sales were reported to DN Journal making the average sale reported $10,103. In the first quarter of 2007, 3,086 sales were reported to us but the average price was only $6,886. For all of 2007, 13,888 sales were reported to us and the average sale for the year was $8,698. So 1Q-2008 showed a significant rise in both average sales price and total dollar volume reported.

1Q-2008 did have one exceptionally large 

domain sale - Fund.com at just under $10 million - but that has happened in previous quarters as well - including 2Q-2007 when Porn.com sold for a similar price, $9.5 million. Still no previous quarter on record matched the one just ended. Even if you pretended the Fund.com sale did not happen and just threw it out of the data, total sales in 1Q-2008 would still have been 32% higher than the same quarter a year ago when the general economy was in much better shape than it is now.

I think the news from the economy at large is so bad that we all get the feeling that everything is coming apart. But at least to this point in time, the sales data shows the domain aftermarket is more than holding its own. I'm honestly a little surprised by that because I would have thought that plummeting PPC returns would have affected aftermarket sales more than they have. I think this shows that people buy domains for more reasons than PPC revenue, especially end users who often overlook PPC revenue completely. In my own experience virtually all of my sales are made to small business end users. For those buyers the idea that a domain could have traffic before they develop their website on it is something that never even crosses their mind. 
(Posted April 3, 2008)  


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