domain name secondary market - icann · pdf filedomain name secondary market tim schumacher...

© Sedo.com LLC, 2007 1

Domain Name Secondary Market

Tim SchumacherCEO Sedo

ICANN, Lisboa 2007


What is the Domain Secondary Market?

• Registered Domains

• Expired Domains

• Domains for resale

• Portfolio sales

• Domain Parking


Expiring Secondary PortfolioRegistration Domains Acquisitions Consolidation

Foundation Growth Take-Off Landing

Evolutionary Theory of Domains

Primary Secondary


Are Sales Values Increasing? Volume of Sales

Monthly Number of Sales

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Sep-03

Nov-03

Jan-0

4Mar-

04May

-04Ju

l-04

Sep-04

Nov-04

Jan-0

5Mar-

05May

-05Ju

l-05

Sep-05

Nov-05

Jan-0

6


Are Sales Values Increasing? Volume of Sales

Monthly Sales Volume

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Sep-03

Nov-03

Jan-0

4Mar-

04May

-04Ju

l-04

Sep-04

Nov-04

Jan-0

5Mar-

05May

-05Ju

l-05

Sep-05

Nov-05

Jan-0

6


Are Sales Values Increasing? Sales by Price Range

Number of Sales by Price Range

0

1000

2000

3000

4000

5000

6000

$0-50

0$5

01-1,00

01,0

01-2,

000

2,000

-5,00

05,0

01-10

,000

10,00

0-20,000

20,00

0-50,000

50,00

0-100,0

0010

0,000

+

20042005


Are Sales Values Increasing? Market Changes

Market Change Between 2004 and 2005

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Number of Sales Average Price

20042005


Where are Sales Coming From? By Volume

Source of 5k+ Reported Sales - All Years

18%

48%

4%

30%

DROP CATCHINGMARKETPLACESOTHERPVT SALE


Where are Sales Coming From? Detailed View

Detailed Source of 5K+ Reported Sales - All Years

45%

9%5%

15%

6%

2%

0%

18%

SEDO

AFTERNIC

GREATDOMAINS

DOMAIN SYS

POOL

ENOM

NAMEWINNER

SNAPNAMES


ccTLD Domain Sales

• Chat.de $470,848

• Travel.tv $65,000

• Domain.co.uk $55,783

• Hotels.jp $40,000

• Blog.ca $20,201

• Food.us $20,000


What is Domain Parking?


What is Domain Parking

• Monetize unused domains’ traffic through advertisements

– Newly registered domains – Expiring Domains– Domains without hosting


Parking Analytics


Primary and Secondary Market are Merging

• Ancillary registrations and hosting

• Improves customer experience

• Creates customer loyalty


Registry Benefits

• Domain investing benefits registries

• Maintain profitability into the future

• Ensure success of the TLD

• Secure market efficiency


THANK YOU !


Following:Domain Valuation


Valuation Factors• TLD• Length• Traffic / Visitor Numbers• PPC Earnings• Internet affinity• Easyness to remember• Comparable domain names• Typing error sensitivity• Advertising and branding potential• Trademarks• Search engine friendliness• Potential• Trends• Trademarks• Motivation of Buyer / Seller


Domains vs. Old-Economy-Assets

• Real estate• Stocks• Billboards• Radio frequencies• Telephone numbers• License plates


What we can learn from stocks (III)

DividendStocks

TakeoverTargets

Growth Stocks

Stars

Profits/EPS

Growth



DividendStocksP/E: 10

TakeoverTargets

P/E: 5-10

Growth Stocks

P/E: 30-infinite

StarsP/E: 10-30

Profits/EPS

Growth



Typos(youtune.com)

Junk(myjunkyard.net)

Brand Names(vodka.com)

High-TrafficBrand Names(games.com)

Traffic

Brand/Resale Value



Typos(youtune.com)

P/E: 1-3

Junk(myjunkyard.net)P/E: 0 (expire)

Brand Names(vodka.com)

P/E: 20-infinite

High-TrafficBrand Names(games.com)

P/E: 4-20

Selling Domains is part of every strategy!

Traffic

Brand/Resale Value


New gTLDs / Quasi-gTLDs / ccTLDs

Buy ↑

• .info• .us• IDNs• ccTLDs

(like .de)

Hold ↔

• .eu (down-graded!)

• .com, .net

Sell ↓

• .biz• .cc• .ws• .tv


Future Trends in the Secondary Market

• Diversification• Internationalization• Lower Transaction Costs• Higher Sophistication


THANK YOU !

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