If I’m buying brandable domain names for resale then I need to know what’s selling and study the sale prices. That’s why I read the weekly list of the top 20 brandable domain sales by Doron Vermaat (@dv82). It’s also why I track brandable sales daily and post them weekly on Doron’s blog (DN Geek) in the comment section. The more data we all have, the better decisions we can make as domain investors.
Let’s Get Real
It appears that in our industry, about 95% of all domain transactions occur between domainers. For example, out of 788 sales reported last week at Sedo, only 24 were to end users. That’s not so good since end user sales are generally where we see our greatest margins.
End User 101
With this in mind, let’s look at some end user sales from this past summer:
The Takeaways
Looking at the sales above, I see the following trends:
If we want to be successful with brandable domains, then we have to be well versed in the fundamentals: what to buy and at what price, and how to market and price the domains we own.
Good luck. May all your sales be to end users!
Let’s Get Real
It appears that in our industry, about 95% of all domain transactions occur between domainers. For example, out of 788 sales reported last week at Sedo, only 24 were to end users. That’s not so good since end user sales are generally where we see our greatest margins.
End User 101
With this in mind, let’s look at some end user sales from this past summer:
- AeroMet.com sold for $1,232 on NameJet back in August. I’m thinking flying machines and travel. But no. The domain was purchased by a “smoke school” that offers courses in air emission technology! It was a defensive purchase that now forwards to their existing dot-org website.
- BrainWipe.com sold for $1,785 on BuyDomains that same month. It’s now a lifestyle information website owned by the Manhattan based company, USA Media Holdings.
- Bloved.com sold for $2,255 on GoDaddy back in June, and it’s now the place to go for “magical matches.” No, they don’t sell sparklers or magician supplies; they're “in the relationship business.”
- BrandThink.com sold for $750 on DropCatch as an upgrade for BrandThinkAsia.com. It was bought back in August by an award winning PR and Marketing firm headquartered in Malaysia.
- BirdInFlight.com sold for $250 on Flippa, also in August. It’s now a lifestyle-news blog.
- CoinPress.com sold for $1,136 on GoDaddy in July. It was purchased by the Penny Press Machine Company and currently forwards to their web site: PennyBiz.com.
The Takeaways
Looking at the sales above, I see the following trends:
- Outreach – Some companies buy domains as an upgrade. So it makes sense for me to reach out to firms with similar domains. I should either offer them a private sale or invite them to participate in one of my listings at Sedo, NamePros, Flippa, GoDaddy, etc.
- Demographics – It seems like domains are being bought mostly by small companies and startups. I’d better not let myself get deluded by the one in a thousand mega sale I hear about at DomainSherpa or on Mike Berkins's blog. I have to remember that those mega sales are the exception, not the rule.
- Pricing – Many end-user sales are in the $250 to $2,500 range. So I guess I’d better price my domains reasonably and at levels that small businesses can afford. Otherwise, I might price myself right out of the market.
If we want to be successful with brandable domains, then we have to be well versed in the fundamentals: what to buy and at what price, and how to market and price the domains we own.
Good luck. May all your sales be to end users!
