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We've
just finished crunching the domain sales numbers reported to
us in the second quarter of 2012 (this is the data
that goes into the weekly
domain sales reports that we have been producing
since 2003). The numbers confirm a trend we have seen developing
over the past year - fewer sales at the ultra high end of the
market (six and seven figures sales) while the low to mid-range
generally remain solid, especially for .coms.
In
2Q-2012 no seven-figure sales were reported (and
there was only one in 1Q-2012 - PersonalLoans.com at
$1,000,000). The highest sale reported in 2Q-2012
was Jackpot.com at $500,000 and that was
one of only a dozen six-figure sales reported during the
quarter. There were over 50% more at that level
in 1Q-2012 - 19 in all. That resulted in the total
dollar volume of sales reported to us in 2Q-2012 slipping
6.7% from the previous quarter, dropping from $22.4
million to $20.9 million. However,
the median sales price (the price at which half
of all sales were higher and half were lower) went in
the other direction, rising 4% from $2,588
in Q1-2012 to $2,688 in 2Q-2012 - evidence of
continuing strength outside of the ultra high end of the
market. Those headline grabbing sales have always
accounted for just a tiny fraction of reported
transactions but they have a big impact on total dollar
volume. |
Image
from Bigstock |
Another example of that comes
from a steeper drop in total dollar volume from the same quarter
a year ago. With a seven-figure sale and 17 six-figure sales in
2Q-2011 that quarter wound up at $28.2 million - 26%
higher than 2Q-2012 when six-figure sales were scarce and
seven-figure ones non-existent (at least publicly reported sales
at that level - it is widely accepted that the vast majority of
aftermarket domain sales are kept private). However again,
despite a huge edge in total dollar volume, median sales prices
in 2Q-2011 were virtually identical to those being
commanded in 2Q-2012 ($2,688 in 2Q-2011 vs. $2,700 in
the same quarter a year ago, a difference of less than 1%).
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Image
from Bigstock |
Before
we delve deeper into the numbers by breaking out results
by TLD categories (.coms, ccTLDs and non .com gTLDs),
keep in mind that, in order to keep our weekly sales
reports at a manageable length, we do
not track sales below four figures (to be specific we
track .com sales of $2,000 and up and all other extensions
from $1,000 or more). As a result our median
figures are higher than they would be if we tracked the
entire universe of domain sales and conversely, total
dollar volume is considerably less than it would be if
we tracked sales at the lowest end of the market).
However by tracking the same metrics quarter after
quarter, year end and year out, we have a good
snapshot of overall market activity and trends. Now
let's break down the latest numbers by category. The .coms,
as they usually do, fared best. In fact, the .coms
were the only group that saw increases in both
total dollar volume and median sales prices compared to
the previous quarter. In 2Q-2012, total reported .com
sales volume rose from $15.2 million in 1Q-2012
to $15.4 million in |
| 2Q-2012.
The median .com sales price also rose from $3,000 in
1Q-2012 to $3,188 in 2Q-2012. The median in the
same quarter a year ago was also $3,000, so the
.com median was up 6% against each of those
earlier quarters. |
Meanwhile
the number of .com sales transactions reported remained
almost identical - 2,367 in 1Q-2012 and 2,341 in
2Q-2012. That is more impressive when a look at the number of
sales reported across all extensions dropped considerably
from the previous quarter with 4,306 reported in 1Q-2012
vs. 3,878 in 2Q-2012, a 10% decline.
The
ccTLDs, as they have been for many years now,
remain the second strongest category with almost twice
the total dollar volume of the non .com gTLDs (a
category that includes .net, .org, .info. and .biz among
others). The impending wave of new gTLDs will also fall
in this category). Even so, the country codes were down
both quarter over quarter and year over year. In 2Q-2012
the total $ volume of reported ccTLD sales was $3.5
million after reaching $4.6 million in
1Q-2012 and the same figure in 2Q-2011. That is a
24% slide against each of those earlier
quarters. The
median ccTLD price also slipped. After hitting $2,002
in 2Q-2011 and $1,979 in 1Q-2012, that number
ebbed to $1,908 in 2Q-2012, off a little under 5%
from the same quarter a year ago and 3.5% from
the previous quarter. It
was a similar story for the non. com gTLDs. Total
$ volume in category fell to $2 million, a 23%
drop from the $2.6 million reported in
1Q-2012 and a 28.5% plunge form the $2.8
million reported in 2Q-2011. The median price |
Image
from Bigstock |
| for
non .com gTLD also fell. That number came in at $1,700
in 2Q-2012, a 4% dip from $1,769 in
1Q-2012 and a steeper 14.5% fall from
2Q-1011. |
On
the day we compiled this report, one of the leading aftermarket
sales venues, Sedo,
also released their quarterly
sales report covering 2Q-2012. One of the
interesting stats in Sedo's report was that the average .net
sales price on their platform was actually higher than
their .com average sales price. With .com's dominance in
the marketplace, that came as something of a surprise so we
wondered if our median numbers (which came from many venues, including
Sedo) also reflected that. As
noted earlier, we track .coms sales starting at $2,000 so, using
the same minimum for the .net sales in our database, we
ran the numbers and came up with the same results. From
our data set, the 2Q-2012 median price for .nets was $3,388
while the .com median was $3,188. You might be
able to use that bit of unusual information as a trivia
question that could win you a beer at your local bar
(assuming it is filled with domainers, of course, otherwise no
one will know what you are talking about)!
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