March-April 2011     The Domain Industry News Magazine

The DN Journal Newsletter is sponsored by, The Leader in Domain Traffic Monetization.

Welcome to DN Journal Newsletter #47! This publication is sent only to subscribers who registered at to receive our free monthly newsletter and email notifications when new articles are posted on our site. You may unsubscribe at any time by sending a removal request to [email protected].

1Q-2011 Domain Sales Edge Up Slightly Vs. Same Quarter a Year Ago Despite Absence of 7-Figure Blockbusters

The first quarter of 2011 was an unusual one for the domain aftermarket as not a single 7-figure domain sale was reported. The biggest public sale in the first three months of the new year was Sedo's $500,000 sale of Seven-figure sales were also scarce in the same quarter a year ago, but there were a couple - at $1.1 million and at $1 million. Despite having that disadvantage at the high end, total 1Q-2011 sales still wound up slightly ahead of 1Q-2010 - very slightly.

The total dollar value of sales reported to us in the first quarter of this year was $23.5 million, a 1.7% up tick from the same quarter in 2010 when sales came in at $23.1 million. The numbers for the latest quarter were a far cry from the $40.9 million recorded in the previous quarter (4Q-2010) but the vast majority of that difference can be attributed to just one sale - at $13 million in November 2010 - the highest all cash domain sale ever reported.

Image: jscreationzs/  

.Com sales provided the numbers needed for 1Q-2011 to win the year over year comparison against 1Q-2010. $16.3 million in .com sales were reported in this year's opening quarter, besting the $14.5 million reported in the same period a year ago by 12.4%. The ccTLDs and non .com gTLDs both slipped slightly against last year. Reported country code sales volume fell from $5.5 million to $4.3 million, a 22% decline, while non .com gTLD sales slipped a little over 6% from $3.1 million a year ago to $2.9 million this year.

(Editor's Note: It is important to keep in mind that the minimum levels that we track and report in our weekly domains sales reports start at $2,000 for .com domains and $1,000 for all other extensions. Total dollar volume levels would be considerably higher if we tracked the vast number of sales at the lowest end of the market. By the same token, the median sales figures we will be discussing below, would be lower if we tracked the lowest end of the market). 

Before we get to median prices, I want to note that the number of transactions in each category broke along lines that were very similar to the dollar volume results. 4,706 sales across all extensions were reported to us in 1Q-2011, a 15% jump from the 4,077 reported in 1Q-2011, but again .com accounted for almost all of the rise. 2,718 .com sales were reported in 1Q-2011 vs. 2,086 in 1Q-2010. There was little change in the other two categories. There were 1,109 

Image: Boaz Yiftach/  

ccTLD sales reported in 1Q-2011, down just a hair from the 1,162 reported in 1Q-2010. For the non .com gTLDs, the 880 sales reported in 1Q-2011 was a bit ahead of the 827 reported the previous year. 

As last year's sale showed, one or more unusually high sales can dramatically skew the dollar volumes from one quarter to the next. So most view median sales prices (the number at which half of all reported sales were higher and half were lower) as being a better measure of performance from one year to the next. The impact of a few blockbuster sales has almost no impact on the median price. 

Median sales prices were down slightly in every category in 1Q-2011 compared to the same quarter a year ago. Across all extensions, the median price slipped from $2,643 in 1Q-2010 to $2,588 in the first quarter of this year. Among the .coms the number declined from $3,188 to $3,000. For the ccTLDs the median edged down from $2,040 to $2,025 and for the non .com gTLDs it ratcheted down from $1,877 to $1,750

Again, as noted above, we track non .com sales starting at $1,000 (rather than the $2,000 for .coms) so for the ccTLDs and non .com gTLDs having hundreds of sales below $2,000 pulls their median price down compared to our .com numbers. To get a true apples to apples comparison there, we can eliminate the sub $2,000 sales in the non .com categories. When you do that, we see an interesting anomaly - the country codes actually posted a higher median price than the .coms on 1Q-2011; $3,475 for the country codes vs. $3,000 for the .coms. The median for non .com gTLDs when you back out the sub $2,000 sales is $2,800, not far off the .com median.

In summary, after a big closing quarter in 2010 (fueled largely by the sale), the opening quarter of 2011 saw domain sales holding their own vs. year ago values (generally up a bit in total dollar volume but down a bit in median sales prices). 1Q-2011 was certainly not a spectacular quarter due to the absence of the kind of 7-figure sales that make headlines, but 

those kinds of things tend to average out over time. As the year goes on, we will like see a little more activity at the ultra high end of the market which will pull the overall numbers up. 

Still, that has never been the sweet spot in the market. The vast majority of sales fall in the $1,000 to $5,000 range and, week in and week out, we still see lots of action at that level. Millions of new businesses continue to come online every year and they still want the best name within their budget they can get to serve as the foundation for their internet enterprises.

Image: nuttakit/  


The DN Journal Newsletter is supported by - The Safe Way to Buy and Sell Domain Names Online.

Thank you for requesting our newsletter, reading and continuing to visit us at Your support is truly appreciated!

Ron Jackson

The DN Journal Newsletter is produced by DN Journal - The Domain Industry News Magazine located at Contents may not be reproduced or redistributed without expressed written consent from Internet Edge, Inc. (Copyright 2010)

You may unsubscribe to this publication at any time here

Hit Counter