I maintain a relatively small domain name portfolio with approximately 1,000 domain names. Nearly all of my company’s domain names are available for sale, and I would guesstimate that somewhere between 85-90% of the domain names are considered general, nothing special, inventory. I am also regularly buying domain names in auctions and in private, although this has slowed a bit this year.
With the coronavirus seemingly slowing the domain aftermarket, I want to share a few observations of my own from the last week. I want to emphasize that my portfolio is relatively small compared to many other full-time investors, so I don’t think my observations are necessarily reflective of the general state of the aftermarket.
In the last week, I have closed 5 sales:
- 3 sales at Afternic
- 1 sale at Dan.com
- 1 private sale
The three sales at Afternic and one sale at Dan.com were for less than $5,000. The three Afternic sales were closed via GoDaddy, and the domain names were sold for the BIN prices. One of the Afternic sales involved a broker, but the buyer paid the BIN price. The Dan.com sale was negotiated between the buyer and myself. The private sale was closed with someone who has bought domain names from me in the past and is an end user. I reached out to him to sell a recent acquisition.
In addition to these sales, I have received quite a few offers on higher end domain names submitted via Embrace.com landing pages. I have not received close to a reasonable or fair offer for any of those domain names. In fact, most people have not even replied to me after sending the prices.
In my opinion, the aftermarket for domain names is strong at the lower levels. People may be working on improving their businesses while times are slow, and they are buying a better domain name to accomplish this. I think buying a better domain name can be helpful to marketing, and it’s one thing in the control of a business owner in tough times.
For one of my sales at Afternic, I can see the buyer upgraded from a .app domain name. The other 2 Afternic sales have privacy on Whois records and the domain names aren’t being used yet. The Dan.com buyer has a business in the field of the domain name, and he bought one of the two exact match domain names for that business. The domain name I sold privately will help the buyer’s business.
I invite you to share your own observations on the market.