NEW YORK, NY – Some companies reap high returns by investing heavily in a declining industry. Others sell out before competitors recognized the decline. Based on some numbers I posted yesterday, there’s no wonder it sparked some chatter back and forth on NamePros.com on whether the overall sales numbers are up or down (when compared to the entire list) or what’s causing the decline, or if the decline is even accurate when viewing the entire years data (not just the top 100).
Most of my lists include the top 100 domain transactions which have taken place at NameBio.com. This gives me (and you) a basic idea of what’s selling and for how much in addition to which venues are looking good as sales platforms.
This time, I wanted to get a hold of the information on all recorded sales, not just the top 100 within the years being measured. To my surprise, NameBio has year to year totals listed in order on this page where each year’s sales are listed in their entirety (right side of page – no export though – I wish). Thanks to NameBio.com CTO Michael Sumner for helping me find my way to these records on their site. (Such a great website for all domainers)
According to this information:
- In the entire year of 2016 there were 84,899 domain sales recorded which totaled $117,515,765.00
- In the entire year of 2015 there were 83,328 domain sales recorded which totaled $168,817,385.00
So in 2016, although there was a small increase in the volume of domain sales over 2015, (1.87% percent more), there was a significant decline in the value of all of these transactions (35.83% less value).
I usually only look at the top 100 transactions of a calendar year, which looking at those indicated a 35% Decline when compared to the year before 2015.
So, this does indeed look RIGHT ON THE MONEY.
Taking a look at the entire years, not just their 100 largest sales, but the entire two years 168,227 total transactions; it’s right on the money, with an overall decline of 35.83%.
2016 indeed processed more reported domain sales then the year before, but for less money.
If I had to take a guess at what is causing the decline I would have to say it is gTLDs; I think a great deal of investment dollars are moving over to gTLDs — even if it is a waste of money (which many will say); dollars are certainly moving in that direction. Others will say it is due to the exit of the Chinese market, but admittedly, I just don’t know enough about that market to comment on it, so I will have to sit with gTLDs causing a diversification of investment.
Another interesting note is that there has been a number of domain portfolios for sale recently by some very educated and experienced domain holders. Any correlation? As Rick Schwartz would say; Trust Numbers Not People.
About The Author: John Colascione is Chief Executive Officer of Searchen Networks Inc. and Internet Advertising Inc. He specializes in Website Monetization, authored a ‘how to’ book called ‘‘Mastering Your Website’, and is a key player in several Internet related businesses through his holding company Searchen Networks®