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Sedo’s Domain Market Study: 2009 Overview and Outlook into 2010

This is a guest post written by Simonetta Batteiger, Director of Sales Operations North America. The article discusses Sedo’s 2009 Market Study (that’s a link to the pdf file), which was recently released. The information in the study is valuable to domain investors and can be helpful in seeing market conditions and trends.

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Looking for some domain inspiration? Check out the latest Sedo Market Study to help you identify market trends and new opportunities! Our market study gives insights into overall marketplace activity, top domain sales and successful domain extensions. Sedo’s continued focus on innovations around our marketplace strategy resulted in a record number of 10,070 domain sales in Q4 and helped solidify our position as the most successful global marketplace for domains in the secondary market.

The 2009 Market Study shows Sedo’s strong growth in sales through our global platform in 2009, versus 2008. Sedo represented 64 percent of the top 100 public sales in the domain industry, with the next closest competitor coming in at 8 percent. This growth was also fueled by impressive quarter over quarter results, with a 5 percent increase in domain sales in Q4 of 2009. In addition, Sedo accounted for 11 of the top 20 biggest sales industry-wide, compared to only 5 of the top 20 sales in 2008. This included a surge in geographical and descriptive domains, including the sale of Fly.com for $1.6 million, Russia.com for $1.5 million, Call.com for $1.1 million, and Brazil.com for $500,000.

Which extensions are the most successful ones?

The study reveals that the .com extension continues to be the most popular generic top level domain (gTLD), accounting for 44 percent of all domain sales on the Sedo marketplace in 2009. In looking at its place among other gTLDs, the .com displays an even greater lead. The extension accounted for 72 percent of all Q4 2009 gTLD sales and 74 percent of 2009 gTLD sales. In contrast, the second most popular gTLD, the .net extension generated 11 percent of 2009 gTLD sales, and only 6 percent of all domains sold on the Sedo marketplace last year.

In terms of the best-performing extensions for average sales price, Sedo’s study saw the sharpest rise in .biz domains. This growth can be attributed in part to the growth in sales of one character .biz domains, which first became available through the .biz registrar in September 2009.

Fixed price names represent a strong growth sector of the market

We’ve seen a significant four percent growth in the number of fixed price domains changing hands in 2009, as compared with 2008. This figure will continue to grow this year, as domain owners apply fixed prices to appeal to more buyers.

What are the top selling categories?

The top selling domain categories of 2009 included software, employment, services, regions, country and cities, tobacco, insurance, three-character domains, hardware and casinos.

Read the complete 2009 Market Study

What’s coming up in 2010

Looking forward into 2010, we expect to see ongoing demand for premium virtual real estate, with geo, descriptive, .org and .com domains leading the charge. Sedo is unique in it’s ability to actively reach out to domain investors and more importantly to end user buyers representing organizations of all sizes to leverage domains to meet their business goals. Our ongoing monthly GreatDomains auctions, our monthly changing Industry Spotlight features (check out sedo.com/tech) and our quarterly vertical promotions and auctions (see sedo.com/travel) will help us push these numbers even higher in 2010. If you want to be a part of these, feel free to reach out to me anytime!

If you have any questions, feel free to email Simonetta – simonetta at sedo.com.

Privacy After Domain Sales Isn’t a Given, Nor is it Free

A few years ago, I used Sedo’s escrow service for a private domain sale. I had closed the deal in private, but I wanted to have a safe transaction so both the buyer and I chose Sedo to facilitate the payment and transfer. The following week, I saw that my sale was reported to DNJournal by Sedo, listing Sedo as the “Where Sold.”

This same thing happened when I used Moniker to handle the escrow for a transaction several months later. The company didn’t facilitate the sale, and it only handled the escrow for the transaction. This upset me because I didn’t know they reported all sales, and had there been a confidentiality agreement, it would have been violated.

In both cases, Ron Jackson quickly took down the sales reports for me, as I did not want the previous seller to see the prices at which they sold.

I was chatting with a friend today who let me know about a Sedo policy I find disappointing. Sedo charges an additional 2.5% to their sales commission to keep a sale private. I thought this was funky, but it was confirmed by a Sedo employee. I know it’s only 2.5% more from your gross sale, but it seems like highway robbery to me. I hope Sedo reconsiders this additional fee, and I encourage people to simply avoid the fee by asking Ron not to post the sale.

Whenever you buy a domain name from any domain venue, you should proactively request privacy before finalizing your transaction. If the company won’t honor your request (or charges you to keep it private), you should consider your other options.

Sunday Afternoon Thoughts

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Here are a few quick hits for another lazy Sunday afternoon.

  • The Snapnames Geo & Local Search Showcase has just over two days remaining, and just seven auctions have bids: SanFrancisco.net, NewBoston.com, VacationExpert.com, CommittedRelationships.com, GuitarRentals.com, Scarborough.org, and SeattlePictures.com. As you can see, there are more than just geodomain names on sale, many of which have no reserve.
  • When are people going to realize how much of a waste of money it is to register stupid names about current events – especially those involving athletes, celebrities, and other famous people. Sure, your Tiger Woods domain names may be humorous (doubtful), but nobody is going to pay you squat for them. At best, you will draw the attention (ahem, criticism) of the mainstream media.   Do you really want to answer a reporter’s question in front of your family, friends, neighbors, and countless others about why you think your lame Tiger Woods domain names are worth anything?
  • I don’t really mind the Sedo redesign…. I actually don’t use Sedo all that much anyway. I do feel badly for someone who had a five figure auction running that ended the day of the redesign. I guess there isn’t much that can be done to avoid this, but it’s a bummer.
  • Tax time is coming! The Domainer Tax Guide is a good resource for people who need some tax advice related to domain investments. Yes, that’s my affiliate code, and yes I also bought a guide and sent it to my accountant since he hadn’t worked with a company like mine before.
  • Larry Fisher is one of the more successful domain investors I know, and he’s been writing a series about a 7 figure domain auction in which he is involved. Larry plans to blog much more often on DirectNavigation.com this year, so it’s a good idea to add him to your list of daily reads.

Domain Industry Leaders to Speak on Panel at Ad:Tech New York

Ad:TechAd:tech is an interactive advertising and technology conference and exhibition held several times during the year, in a variety of locations, including New York, Shanghai, San Francisco, Tokyo, Beijing, and other media centers throughout the world. If you are involved in the interactive space, you should make it a priority to attend Ad:Tech – even if you simply opt for the free exhibition floor pass. Ad:Tech New York will be held from November 4-6 at the Javitz Center in New York City.

I just learned that some of the domain industry’s leaders are scheduled to speak on a panel at Ad:Tech New York in November. The Domain Industry Workshop, “Domain Tips to Drive Your Business Forward and Save Money” is sponsored by leading domain investment companies, Sedo.com, Media.net, Name Administration, Inc., and NameMedia, Inc.

Featured panelists include Jeremiah Johnston, COO and General Counsel of Sedo.com, Div Turakhia, Founder and CEO of Media.net, Frank Schilling, Managing Director of Name Administration, Inc, and Bob Mountain, VP of Business Development at NameMedia. This panel will be held on Wednesday, November 4 from 2:10pm – 3:00pm.

If you want to sign up for a free exhibit hall pass, you must do so by October 2, or the price will increase to $35. You can also see all of the conference pricing options for the New York show on the Ad:Tech website.

Could Sedo Parking Page Put Jets.com at Risk?

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Jets logoWhile watching the New England Patriots play the New York Jets today at the Meadowlands in New Jersey, I have been catching up on some domain news from the past week, including an article about the Jets.com domain sale.

I read that Jets.com was sold by Sedo for $375,000 last week. According to the Whois information, the registrant is currently “Sedo  LLC Domain  Transfer  Escrow  Service” which is standard for domain names that are undergoing an ownership change with Sedo acting as the intermediary.

I also saw that the nameservers are currently set to Sedo’s DNS, ns1.sedoparking.com ns2.sedoparking.com, although I am not sure when those nameservers were changed. Previously, the domain name was owned by a private jet charter service, and the website was a jet airplane booking engine.

At the moment though, it appears that the domain name has advertising related to the NFL’s New York Jets (see screenshot below). There are PPC ads for the following football-related offers:

HSN.com: “New York Jets Shop for Jet’s Gear at HSN Low Prices On NFL Team Merchandise!”

NFLnewsline.com: “Patriots vs Jets Matchup Our NFL Game of the Week! Get the Latest Info & Week 2 predictions.”

Justbuytickets.com/Jets: “NY Jets Tickets Just Buy New York Jets Tickets New York Jets Tickets All Games”

I am not an attorney and have very limited legal knowledge, but I am wondering whether this usage could put the domain name at risk. If there is any risk, I am wondering who has responsibility for this risk, since the domain name is technically registered to Sedo right now pending transfer to the buyer.

This would certainly be a moot point if the NY Jets purchased this domain name, but if they didn’t, I sure hope the new owner will take steps to mitigate the risk ASAP. This is somewhat similar to the Dolphins.com UDRP (domain now owned by the NFL), although the Dolphins still aren’t using Dolphins.com. Incidentally, there was a UDRP filed for Dolphins.com and Jets.com back in 2000, but it was terminated.

Jets.com Screenshot

RSS.com For Sale – Reduced Price

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A while back, Sedo was brokering the domain name RSS.com for $750,000 but it didn’t sell. I recently learned that the buyer has drastically cut his asking price, and it’s now for sale with a price of $125,000.

This is a great domain name that can be used to offer a variety of RSS-related services. I don’t believe this deal is going to last very long at the current price.

If it’s a name you’re interested in acquiring (lump sum cash deals only), send an email to Christian Kalled, Senior Broker at Sedo – christian at sedo.com.

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