Besides the new gTLD domain names and the Chinese domain name market, a major topic of discussion at NamesCon was domain portfolio sales. I have heard about large domain name portfolio acquisitions recently, and I think some people who manage large domain portfolios see the value in making a portfolio deal.
While chatting with Karen Dixon about the great targeted advertising campaign being run by BuyDomains, I asked her if her company is actively looking to acquire domain name portfolios. Buy Domains targets what I would consider end user domain buyers, and making large portfolio acquisitions at the right price can be mutually beneficial for the company and domain sellers.
In terms of domain name acquisitions, Karen let me know the company has focused primarily on buying domain names on the drop and via auction. This strategy may change a bit this year, as the company intends to acquire portfolios of domain names that the company could resell to its clients. “We will continue with these efforts in 2016 but want to add the highest quality names possible to our 1MM+ portfolio,” Karen told me. “We are currently entertaining acquiring high quality portfolios,” she added.
When selling a large domain portfolio with thousands of domain names, domain owners need to understand the buyer is not going to pay close to end user pricing. In fact, on an individual domain name basis, the sale price may seem extremely low. In fact, when Endurance acquired BuyDomains, Andrew Allemann estimated the price per domain name was very low. That said, some domain names in a portfolio are likely unsaleable or will take many years to sell, and getting a lump sum could be advantageous to some domain sellers.
My company maintains a small portfolio, so I would not be a candidate for a portfolio sale. I am sure there are some domain owners out there who own larger portfolios with quality domain names, and selling to BuyDomains might be appealing.
Karen let me know that those who wish to discuss a portfolio sale should reach out to Jason Miner (Jason “at symbol” endurance.com) to discuss.