When seeking appraisals, domain owners often ask to distinguish between wholesale value and retail value. The wholesale value is how much another domain owner or bargain hunter would pay, while the retail value is how much a company that needs the domain name would pay to secure it.
NameMedia operates BuyDomains, which primarily caters to retail buyers, and the company sells millions of dollars in inventory a month. The company also operates Afternic, which sells company-owned domain names as well as privately owned domain names.
This morning, NameMedia announced the launch of DirectDomains.com, which the company is calling a “wholesale marketplace site.” This new site, which is currently being tested with NameMedia-owned inventory, will be targeting “value buyers.”
Here’s what the company has to say about the launch of the new brand:
“As the domain market continues to grow, we recognize that there is a need for a range of price points for difference audiences. We long-ago pioneered the premium domain marketplace, and today we still achieve the highest median price of any domain marketplace that sells in volume. Our research has shown, however, that could be a substantial opportunity in targeting “value buyers” with domains, and so we are testing that concept with this new site.”
I think it’s a good idea, but I hope it doesn’t cannibalize sales from its other platforms. If an end user buyer is looking at two names, I would hope he or she would select the better, higher priced domain name instead of the less expensive option.
Have a look at DirectDomains.com when you have a chance to see how the company is positioning the names. It’s a pretty cool looking site, and it’s a neat concept.