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TheDomains.com

What Is The Domain Market Worth? Ex-ICANN Chairman Peter Dengate Thrush Says Its “Worth $12 Billion”

August 17, 2011 by Michael Berkens

Peter Dengate Thrush  former Chairman of the Board of ICANN told reporters today that the “current domain name market is worth about $12 Billion Dollars”.

“We think it will expand by some $3-4bn with the new gTLDs.” Mr. Thrush told a reporter for  cityam.com

So what do you think of Mr. Thrushes estimate of the value of  the domain name market?

High, low or just about right?

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Filed Under: Domain Industry

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

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Comments

  1. BullS says

    August 18, 2011 at 1:29 am

    my “BullS’ is already worth more than 15 trillions….

  2. Stardom says

    August 18, 2011 at 3:10 am

    worth to who?
    the registrars? icann? wipo? real businesses sitting on multi-million domain names? investors with domain portfolios worth hundreds of millions? like reflex, schilling, accommodation, national a1? etc etc.

    impossible to put a price, certainly without stating which segment he is talking about. only a fool would try. oh, i see former icann man.
    enough said

  3. ICANN pro says

    August 18, 2011 at 6:41 am

    how can the whole domain aftermarket be worth $12 bln if only MHB’s .coms are worth several blns?

  4. Jp says

    August 18, 2011 at 7:18 am

    I don’t know about the base number of 12B, maybe right but where is this number coming from.

    What I do like is how he believes that exponentially increasing the space with new tlds will only increase the value of te space by like 30%. That actually seems reasonable.

  5. ::: MOTOROGLE.COM ::: says

    August 18, 2011 at 8:09 am

    if only Verisign and GoDaddy are valued a total of $7.5 billion, the world domain market may worth $30 billion or more

  6. Peter says

    August 18, 2011 at 8:54 am

    m.ogle: that does not make any sense. The sales prices of those companies do not reflect the value of the domain market. Business valuation is tricky, multiples involved, other assets, you name it.

  7. Louise says

    August 18, 2011 at 9:23 am

    It’s ridiculous. The domain market is worth trillions.

  8. Numbers Man says

    August 18, 2011 at 10:14 am

    In order to establish the value of the domain market one would first need to define what the domain market is. Does the market include new registartions, renewals, aftermarket sales?
    Regardless, hard to establish value in a market that has next to no liquiditiy

  9. ojohn says

    August 18, 2011 at 11:05 am

    I am not an economist, but I believe that there is a difference between the “ domain market “ and the “ domain economy “.

    Domain market probably is more about the domains that are for sale, total number of those domains, their average prices, and their combined values.

    But when you start talking about the total assets that are being held by domain companies, individual investors, and developed websites that starts to fall more under the “ domain economy “ as a whole.

    –

  10. ::: MOTOROGLE.COM ::: says

    August 18, 2011 at 11:10 am

    “The domain market is worth trillions.”

    this is true if we consider, that, big companies like Google, Yahoo, Amazon, eBay, etc. (simply) can’t exist without the web, then “without a domain”

    also, we must add in the “domain market value” also the value of all top domains owned by web and non-web companies (google.com, microsoft.com, apple.com etc.) that (clearly) are domain market’s assets

  11. ojohn says

    August 18, 2011 at 11:16 am

    Its like when we talk about the housing market are we referring to all the houses that are in existence or only the houses that are for sale.

    –

  12. Jim says

    August 18, 2011 at 11:25 am

    If the domain market is worth $12B to $1TR, then what is the technology that eventually moves us beyond the need for domains worth? I’d love to be the father of that idea!

  13. Jim says

    August 18, 2011 at 11:27 am

    But I would need some heavy security detail!

  14. ::: MOTOROGLE.COM ::: says

    August 18, 2011 at 12:04 pm

    “I’d love to be the father of that idea!”

    if so,you’ll be very lucky, since, that “father” owns a $70+ billion company… 🙂

  15. Samit Madan says

    August 18, 2011 at 12:20 pm

    I think he meant the primary market, which is probably worth what he says it is.

    The secondary market, once you account for the inflated prices people think their domains are worth (including me), would probably be in the trillions.

    Not that $12 billion is to be sneezed at, not the $3-$4 billion that will be ‘spent’ on regs in the new gTLDs.

  16. Andy says

    August 18, 2011 at 12:37 pm

    Sizing the “market” with an agreed set of dimensions and assumptions would be a useful way to establish a way to measure it. If purely a matter of registrations, renewals, domains that are “active” (meaning they serve content or resolve), that should be a baseline in “domain speak”…Would also be interesting to see how many new gTLDs redirect to .com and/or others.

    But new gTLDs, particularly generic terms, should open up new business models and monetization which may be challenging to measure on standardized basis since models will be variant. Would be interesting to see percentage of brand TLDs by industry sector.

    A composite auction values model also could be interesting since it’s so fragmented.

    ICANN should partner with a market research firm and establish a Nielsen-like approach to this, and publicize results quarterly like Verisign does.

  17. Duras says

    August 18, 2011 at 2:00 pm

    Yeah, KoolDomaining.com for everybody:)

  18. James says

    August 18, 2011 at 3:02 pm

    Anyway we can short the domain market ? 🙂

  19. robert A says

    August 18, 2011 at 3:07 pm

    Only priced domains at Sedo is worth about $60 Billion Dollars 😉

  20. ICANN pro says

    August 18, 2011 at 4:19 pm

    seriously i will repeat my self MHB’s dot com’s are worth several billions , thre is no way, the domain markte is worth $12 bln. Aftermarket is more like 12 trillions accouting CCTLDS too

  21. FX says

    August 18, 2011 at 7:16 pm

    makes some sense.
    If VRSN, and Godaddy are considered half the market.

    It doesnt matter what the break up value of MHB’s domains or NameAdmin’s domains are worth to end user. Its what the fair market value of their companies is today based on EBITDA and some assets value formula.

  22. FX says

    August 18, 2011 at 7:17 pm

    Better question would be, what is the total value of registrar/registry industry.
    And how much revenue do registrars/registries generate per year.

  23. JE says

    February 27, 2012 at 10:09 pm

    I think this is load of bs domains got to be worth more there are plenty of registrars out there selling domain names and hosting them. How the fuck can TLDs be worth 12B? Its gotta be 12T? Since when you want to start a business, organization, or personal sites you need a domain name saying that you have part of the World Wide Web telling people how it is by sharing information.

  24. John says

    March 23, 2012 at 1:24 am

    $12 billion up my ass. Oh yea! Ex-ICANN chairman, so what?!, that doesn’t mean if you want to permanently own a domain name would cost you $720,000. How can a site exist without a TLDs? We need TLDs its the only thing making our names different. Okay would you ever remember typing out IP addresses if you want to go on Google? this is why ICANN became an authority in-fact they are called Internet Corporation for Assign Names and Number they assign your numbers to a name you chose, your domain, and give it a TLDs of your choosing off-course.

    Turn that B into a T that’s should be ICANN’s true worth $12T.


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