I missed this earlier this week, but DAN.com founder Reza Sardeha shared some interesting cumulative stats that I found interesting. Reza’s posts were made deep within a long NamePros thread called “DAN.COM Domain Marketplace (Official Thread).” The statistics were brought to my attention this morning in a tweet from domain investor Nikul Sanghvi:
The https://t.co/NOPwRIGvKa team (@Undeveloped) shared a few numbers on @namepros this month…
👉 900k domains using their nameservers
👉 Close to $2m a month in domain sales
👉 1.5m unique visitors a month go direct to https://t.co/NOPwRIGvKa
Incredible … congrats guys 👍 pic.twitter.com/P3H93nwX8n
— Nikul Sanghvi (@hypernames) September 27, 2019
You should read the thread and Reza’s posts in their entirety to get more context, but in summary, Reza mentioned the following stats in his NamePros posts:
- $2 million a month in sales
- 20.97% of traffic is US based
- 1.5 million unique visitors a month
- 900,000 domain names use DAN.com nameservers.
In his posts, Reza also discussed how domain names and sellers are ranked within DAN.com searches, and he provided some insight about how the company’s search algorithm works and returns results.
“Incredible”? Meh. My “wet blanket analysis”:
900,000 domains = 1.5MM visitors = 1.6 visitors per domain
900,000 domains x 1% annual sales (1% of domains sold) = 9,000 domains sold annually.
9,000 domains sold @ $2,750 (average) = $24.75MM gross revenue / $2MM a month in gross sales.
Nothing impressive on the domain owner side: 99% unsold inventory with average sale @ $2,750. If you’re selling 1% of 100 domains held each year (on average) that means your renewal costs eats into those numbers. The $2,750 is also an average, which means the average $ is likely skewed relatively few larger $ sales.
Good for DAN. They get a nice slice of pie for not a lot of work.
Good domains sell themselves. Good brokers can help close a deal when they’re directly actively involved AND knowledgeable, both at valuation / value in use AND in negotiating / mediating transactions.
Nice analysis, Thank you for that.
A lot of Dan’s growth is coming out of India
We can discuss the sell-through rate, but I do think it is very impressive that Reza and his team have accomplished such a solid turnover in just a few years.
It would be quite interesting to know how many of the sales are installment plans or rental. Things that dinosaurs such as Sedo and Afternic do not offer.
I have only been using them for 1 month but they seem to update my portfolio page more often than sedo or afternic.