StartupStud.com conducted an interview with Sedo, on topics such as what determines a domain’s value, how should an entrepreneur go about getting the best domain ? .Com vs new gtlds when it comes to value and sales data.
A couple questions from the interview:
StartupStud.com: What are the primary factors that determine a domain’s value?
Sedo: A few of the major categories we take into consideration when placing a value on a domain are the TLD, length of the domain, linguistic suitability, and branding/commerce potential. When providing appraisals on particular domains we also always look to comparable sales data, which can be one of the most helpful indicators of a domain’s value in the current market. As with the real estate market, the domain market is constantly evolving.
As such in the domain world, when seeking a valuation, you want to have the most current sales data to support any values quoted as a fair market value.
StartupStud.com: Are .com’s still the most valuable TLD? If so, do you see that being the case for the foreseeable future? For how long?
Sedo: .com names are still, by far, the most in demand domain name and our expectation for the foreseeable future is that it will stay in this position. Our current market data puts the average price of a .com name at $4,701 while the next highest selling TLD is .net at $1,429. .com is still the TLD that can be used for everything and has the broadest use case although names such as .web, .site and others have good potential, too.
Strong arguments can be made for using the new TLDs such as shortening existing lengthy domain names with the use of the a new TLD or also using one that is more relevant and targeted for your business such as .club, .bar, .shop, etc. It is for the most part too difficult for the new names to compete on the same level with .com in the near future and in all fairness comparisons between long-standing TLDs and the new names should be withheld.
Benefits to using a new GTLD is coverage of a vertical or a geographic area or anything else that further clarifies what your website and business are all about.
Read the full interview on STARTUPStud.com
Since when did the .com average sale price jump $2,200. Q1 2015 at $2,503 and Q2 2015 at $4,701. From quarter to quarter for the past few quarters it varies by a couple hundred bucks but this quarter it jumps $2,200? Is this a huge typo error or is this the story of the year that no one has bothered noticing.
Is it really a story? Fr, es and de all went down. Besides, go back through the years and look at the studies. Take 2010-2012 for example, the mean sale price for dot com went down by over $1k. The market constantly changes. Sedo even points that out.
$2k is nothing. I predict you’ll see higher than that by one quarter. Keep those eyes peeled.
@Todd,
Keep in mind, these are mean prices. And the mean skews upward due to large sales.
Roughly, Sedo reports 500 domain sales totaling $1 Million each week. That’s $2,000 on average (using round numbers). All it would take to raise a month’s mean sale price from $2k to $4k is a single extra $1 Million sale. So to raise the quarterly average by $2k, all Sedo would need is a single $3 million sale. Such things happen.
The median .COM sale price at Sedo would be far lower than $2k – $2.5k. And it would be less volatile.
Correction: I mistakenly compared the weekly total with a monthly extra sale. Multiply by 4. An extra $4 million in large domain sales during the month would cause a $2k jump in the monthly mean. So if the mean went up by $2k for the quarter, then these extra large sales would have added $12 million. That might just be 1 or 2 domains.
One big sale would skew the numbers. I thought about it and remembered the We.com sale for 8 million dollars that wasn’t reported earlier this year. That one sale would totally mess up the average sale per domain.
In my opinion anomalies like this shouldn’t be included when averaging sales. It over inflates the whole lot and the numbers become useless.
Sedo price trends link
https://sedo.com/us/resources/market-trends/