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Sedo
Releases 3rd Quarter Sales Results - Reports
Much Stronger Median Sale Prices Than a Year Go
Editor's
Note: After this article was posted,
Sedo issued an updated
release deleting references to the median
price increases cited in their initial press
release that was quoted in this article. In
researching median price questions raised by Andrew
Allemann at DomainNameWire,
Sedo reported finding a currency error that
produced incorrect median numbers, resulting in
that metric being withdrawn in their updated
release.
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The
drop in total dollar volume resulted from fewer blockbuster
sales at the ultra high end of the market as
weakness in the general economy seemed to make
buyers too skittish to pull the trigger on
seven-figures deals (only one has been
publicly reported in 2012 - PersonalLoans.com
at an even $1,000,000 last February).
Though high end sales have been few and far
between, the mid range of the market has been a different
story with a steady stream of sales at
median prices that have moved up from a
year ago (the median price is the point at which
half of all sales were higher and half were
lower). Sedo
reported "median sales prices for the most
popular generic Top-Level Domains (gTLDs) saw significant
increases from the same quarter a year ago,
indicating strong momentum in domain
value. Specifically, .COM domains saw a
year-over-year increase of 41%, while
.NET and .ORG domains both increased 44%.
By contrast, the lack of high end sales across
the industry resulted in total dollar volume at
Sedo falling over 20% from $19.3
million in 3Q-2011 to $15.1 million
in 3Q-2012.
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Image
from Bigstock |
Sedo's
average sales price for .COM
domains increased from $2,107 in
the previous quarter to $2,225 in
3Q-2012 with .COM domains accounting for
49% of Sedo's sales. The average
sales price of .NET sales "plummeted
almost $1,000 in the third quarter,
suggesting that the high average
experienced last quarter was the result
of several very high value sales,"
another illustration of how a handful
of sales can skew total dollar volume
and average sale prices
dramatically. The
average sales price for .ORG
domains increased to $1,313, up
9% from the previous quarter,
largely thanks to the sale of Work.org
for $55,000.
The
Sedo report said domains were purchased by buyers in more than 160 countries worldwide,
"further highlighting both the
global importance |
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of securing the right domain for a business and the
creative approaches some registries have
implemented to market country code
Top-Level Domains (ccTLDs)." Sedo
also noted that Buy Now transactions
(sales made at fixed prices rather than
through back and forth negotiations)
accounted for 42% of all sales
there - further evidence of a trend that
has been growing annually - buyers
showing a preference for set prices
rather than haggling for a domain. |
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