A 5,5% Growth in the Secondary Market

Sedo the leading market place for domain name trade has recently published its third quarter report on the domain name secondary market. It is full of seminal information on rising prices, growing success of geographic names, hegemony of the dot COM … Highlights.

Sedo Reinforcing its Leadership

As a regular reader of mailclub.info you are probably already be aware that domain names are among those few products that sell at higher prices on the secondary market than on the “primary” market so to speak. According to its report Sedo dominates the market with a 75 % share, an increase of 5% in comparison from the second quarter 2009.

The sales of domain names increased 5.5% during the same period. These sales were carried out mainly through offers -counteroffers (49%) and through marketplace auctions (34%). Eventhough sales at fixed prices remain scarce they tend to increase steadily in the case of first-time buyers.

Most Sought After TLDs

The dot COM remains the most sought after extension. It accounts for 88 % of the sales of domain names with a generic TLD, that is 45% of the total domain name sales during the third quarter.
As for country code Top Level Domains (ccTLDs), dot DE (Germany) and dot CO dot UK (United Kingdom) seem to be the most popular. Despite a 4% decline in sales in comparison with the second quarter 2009, the German extension outruns its British counterpart totaling 56% of domain name sales as opposed to 15% for the .CO.UK.

A Hefty Check ?

Sedo reports an increase in the average sales price of some TLDs. Hence the average sales price for a dot COM reached 3.301,00 $ during the third quarter, an 86% increase from 1.768,00 $ in the previous quarter.

The check was still pretty hefty for some ccTLDs such as dot CO dot UK extension the average sales price of which reached 2.122,00 $. Eventhough dot CO dot UK lost nearly 17% of its value, it remains dearer than its German counterpart. Indeed dot DE increased 84% in value and sold at 1.650,00 $ on average. The French dot FR is also gaining value as its average sales price increased two folds and reached 4.368,00 $ during the third quarter.

A Glimmer of Hope for the New Extensions?

The category of domain names which sold the most was that of cities, countries and regions. This could give a glimmer of hope to the proponents of CityTLDs and regionalTLDs. Will it be enough though to speed up the ICANN’s decision process regarding such projects? I am not quite sure…
Finally we notice that among the best selling domain names in this Christmas period are: christian.com at 600.000,00 $ (third position), jesus.net at 124.337,00 $ (15th position) and brazil.com at 500.000,00$ (4th position). There is only one to step to spending one’s Christmas holiday in one of Copacabana’s beaches!