Sedo

I was just informed that there are going to be some  noticeable  changes at Sedo, and I want to let you know about them in case you are a regular Sedo buyer or seller. From my own experience, when a company changes the design and/or functionality of a website, it can be frustrating, so take a look at what you can expect to see when you visit Sedo after the re-launch.

Here’s what Sedo has to say about the changes that are coming today:

An Enhanced Version of Dropdown Navigation Returns to Sedo!

We’ve had a lot of feedback from our customers in the last two years following our website redesign. One of the major pieces of feedback we received is that our members prefer the classic style of navigation, featuring dropdown menus rather than a horizontal tab structure. That’s why we’ve decided to bring back an enhanced dropdown structure. This will make it easier for all members and visitors to the site to find what they need quickly, easily, and in the way they’ve asked for.

A New Homepage Design Puts Domains and Accounts at Buyer’s Fingertips

Starting with our .com site, we’re testing a new and simplified homepage. This test will enable us to better meet our visitors’ needs and empower customers to access domain listings and their accounts without distraction. Visitors to the US homepage of Sedo’s website will see either the current homepage, or this new version. We’re excited for the results of this test!

Expanded Reach Makes Sedo the Premier Choice for Listing Domains for Sale

All domain listings are automatically promoted across Sedo’s Domain Marketplace, including the SedoMLS Promotion Network. This expanded reach will help all sellers connect more readily with potential buyers and can help to increase the rate of sale.

Promotion Levels Make It Easy to Optimize Domain Listings

With the new marketplace come new promotional options, including SedoMLS Premium for eligible domains. We’ve introduced an easy and intuitive way for all sellers to check each domain’s promotional level at a glance and make changes to optimize exposure. You can find this new feature in Domain Management. Once all four bars are filled on the green gauge, a domain has reached maximum promotion and has the greatest chances of selling.

Fixed Prices are now Buy Now Prices for a Clearer Marketplace

We’re making things more consistent for buyers and sellers throughout our marketplace. From now on, fixed prices will be known as Buy Now prices, and those domains will be available to others as Buy Now listings. These listings receive exclusive promotion in our marketplace and are preferred in Sedo’s marketing, such as the monthly newsletter and cross-promotions with partners. Further, buyers can shop for domains with confidence and without the guesswork.

In the last three years, a number of my friends have had kids. One thing I’ve learned from all of this excitement is that the moms and moms to be do a ton of baby research and are excited to share things with other moms and moms to be. Moms a ton of time and money researching everything from organic baby food to diapers, and everything else in between.

I am sure this stays true as the kids get older, but my friends’ wives seem to be very active moms, and that’s a big reason why I think Moms.com is a great domain name. When someone hears the name Moms.com, there is no doubt in their mind what will be on that website. I could see a large company or an enthusiastic startup purchasing this domain name and creating a community on the domain name.

According to a news release this morning, the owner of Moms.com has put it up for sale, and Sedo will be the exclusive broker. Although the asking price isn’t listed, I believe this is a high 6 figure or low 7 figure domain name.

There are a ton of websites devoted to moms, and Sedo should be able to get some good publicity in this vertical.

Press Release:

Sedo, the leading online domain marketplace and monetization provider, today announced that Moms.com will be listed exclusively for sale at Sedo. Easily searchable, highly marketable and easy to remember, this exclusive domain name offers an unprecedented branding and investment opportunity to help capitalize on the internet-savvy and highly influential “mom” demographic.

With the buying power of US moms currently residing at $2.1 trillion a year, the “mom” demographic is one of the most lucrative consumer groups in the United States. Moreover, they are one of the top performing groups with regards to blogging, social media, couponing and overall internet use. A recent study shows that the number of “US Adult Female Internet Users with Children” increases year by year, revealing the massive marketing opportunity for this growing demographic.

In 1996, when the internet was still in its infancy, and search engines did not yet exist to help provide information in a flash, two moms set out to build a website using the Moms.com domain name, intending to provide a much needed online resource for moms and their kids. The website has since been undeveloped, which offers new domain owners the rare opportunity to build a global brand from scratch.

“It’s very rare when a domain name of this value becomes available – especially one that has not yet been developed,” said Kathy Nielsen, Director of Sales at Sedo. “Moms.com not only offers the right investor the ability to start with a clean slate, but also provides a very significant marketing and revenue opportunity. We are very pleased to be chosen as the exclusive brokerage firm to represent this domain sale.”

Descriptive and generic domains that define a category have historically been the most valuable properties on the Web. Similar domains that have sold in the past show the potential value of the sale of this domain. For example, Toys.com sold for $5 million in 2009, Men.com sold for $1,320,000 in 2003, and Social.com sold for $2,500,000 in 2011.

Parties interested in buying the Moms.com domain should contact Sedo at consult@sedo.com.

I saw that Next Navigation has put some of its descriptive domain names up for sale on Sedo via Great Domains, and a few of the names stand out as having low reserve prices. As you may recall, the company sold DataCenter.com for over $350,000 via Sedo at the end of May.

Four of the names I like and believe have fair reserve prices include (not affiliate links):

• Skating.com (Reserve: $10,000 – $24,999)
• ShoppingMall.com (Reserve: $50,000 – $99,999)
• 140.com (Reserve: $10,000 – $24,999)
• HuntingLicense.com (Reserve: $1,000 – $4,999)

In total, it looks like the company is selling 20 names at the Great Domains auction this time around. You can see the full list on the Next Navigation website.

With the help of Berlin-based economist and internet entrepreneur Thies Lindenthal, Sedo has announced an interesting new Domain Name Price Index (IDNX) website. The company says its “the industry’s first constant quality domain price index for the secondary domain marketplace. The index offers domain name managers and investors unique insight into fluctuations in the domain name market.”

When you visit the site, you can see the index performance compared to that of the NASDAQ 100 performance for the same time period. Interestingly to me, and likely one of the main points of this index, is that domain sales seem to track closely with the NASDAQ chart, indicating that there are economic conditions contributing to each performance.

Explaining this further is Tim Schumacher, CEO of Sedo.  “Lindenthal’s extensive research on domain pricing validates the domain name market and shows that domain markets are not a fantasy land where dreamers trade esoteric goods at imaginary prices.   Domainers who use the insights IDNX offers and ancillary domain pricing tools to set fair and fixed prices on their domain names, ultimately help make our industry more valued and respected.   In turn, this will continue to positively impact domain name sales.”

The index is calculated based on over 200,000 domain sales consummated on Sedo’s platform since 2005.  You can get more in depth information about the methodology and data used in the IDNX in Thies Lindenthal’s  working paper (pdf).

Of course you can’t price your domain names based on this Index, but it is good to show how domain values have been performing. It’s also good to show people that there is an economic foundation for domain sales, as some seem mystified about how domain names are valued and priced.

Ironically, the domain name on which the Index is operated, was acquired by its owner for $5,500 earlier this year using Sedo’s brokerage services.

Press Release below:

Sedo, the leading online domain marketplace, today announced the launch of the Internet Domain Name Index (IDNX), the industry’s first constant quality domain price index for the secondary domain marketplace.  The index offers domain name managers and investors unique insight into fluctuations in the domain name market.

Connection between online and offline economy

Developed by Berlin-based economist and internet entrepreneur, Thies Lindenthal, IDNX uses Sedo’s current and historical sales figures data, going back over the last six years.   From this data, IDNX can provide domain investors with critical insight into the current market value of domains, as well as highlighting domain industry trends to help determine the true value of their domains.

By indexing more than 200,000 domain transactions over a six-year period, IDNX highlights the connections between the online and offline economy, showing that domain prices have a clear economic foundation.  The index exhibits a strong correlation between the domain name market and standard economic indicators, including changes in the NASDAQ 100 index and the stock prices of internet giant Google.

The Value of Domains

Initial findings from IDNX shows that domain names saw a rapid increase in value from 2006 through to 2007, with prices peaking in November 2007 having seen a 76 per cent rise since the start of 2006.   Prices then saw a continued decline of 34 per cent over the next 5 quarters, through 2007.

However, since this decline into 2008 domain names have bounced back and seen continued strengthening and climbed to an all-time high in May 2011.   This rise has also featured high-profile domain sales such as gambling.com ($2.5 million), vodka.com ($3 million) and the record breaking sex.com ($13 million).

Thies Lindenthal comments: “IDNX shows that internet domain name prices have a clear economic foundation and are not detached from the general economy.   On the contrary, domain price changes are very similar to changes in the NASDAQ 100 stock price index, for example.   Therefore, domain prices reveal how investors evaluate current and future business opportunities on the web, making IDNX the fever curve of the internet economy.”

Tim Schumacher, CEO for Sedo, said: “Lindenthal’s extensive research on domain pricing validates the domain name market and shows that domain markets are not a fantasy land where dreamers trade esoteric goods at imaginary prices.   Domainers who use the insights IDNX offers and ancillary domain pricing tools to set fair and fixed prices on their domain names, ultimately help make our industry more valued and respected.   In turn, this will continue to positively impact domain name sales.”

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IDNX Methodology

Two general methodologies are commonly used to price non-standardized assets like real estate or art.  The first one, the so-called hedonic regression analysis, explains the price of an asset by a set of quality variables that describe the characteristics (hedonics) of that asset. Alternatively, the repeat sales methodology traces individual domains in time, comparing each transaction to previous transactions of the very same asset. While this is generally regarded as the most direct form of making an “apples to apples” comparison, it disregards all information on transactions that are sold only once. IDNX combines the advantages of both methodologies and relies on a so-called Hedonic Repeat Sales methodology, using a hedonic classification of the TLD and otherwise a repeat sales approach.

IDNX   will be updated on a monthly basis to include:

• Calculations of the latest trends in domain prices
• Accurately assesses and track the value of domains in real time

IDNX Webinar

Sedo’s CEO Tim Schumacher and Thies Lindenthal will be hosting a webinar on 23^rd August 2011 to provide a broad overview of the IDNX tool, and best practices on how domain investors can use the tool to make the best domain buying decisions. Please visit https://www3.gotomeeting.com/register/379034878 to register for this event.

For more information, please visit: www.sedo.co.uk/idnx

About Sedo

Sedo, an acronym for “Search Engine for Domain Offers,” is the leading domain marketplace and monetization provider.   Headquartered in Cologne, Germany and offices in London, England and Cambridge, Mass., Sedo has assembled the world’s largest database of domain names for sale, with more than 18 million listings.   The success of Sedo’s model has attracted a global membership base of more than 1 million domain professionals.

About Thies Lindenthal

Thies Lindenthal is a seasoned internet entrepreneur and researcher, holding a Ph.D. in Real Estate Finance from Maastricht University.  IDNX is his newest project, linking two of his most important intellectual playgrounds, traditional real estate research and the economics of the internet.