Domain Market Remains Hot…A Bubble Waiting To Burst?
June 25, 2007 by Pablo Palatnik
In April, I wrote a blog post, “Domain Names Have Become True Commoditiesâ€. It’s now June and the market for Domain names is still rising in prices. It’s much like the housing market two years ago, not quite as hot and profitable yet, but there are a lot of people making serious money from domain names.
Duncan Reily of TechCrunch reports on the domain name market in his post, “Domain Sellers Party Like Its 1999â€. The last time domain names were this hot was 1999-2000. It is now 2007 and the market is back. The announcement of Business.com on sale in the market has sparked major interest in not only web business aspect, but also the domain itself which I believe is a big part of its price tag estimated at around $300-$400 million dollars.
Reily reports, “Last week some $10million changed hands at auction for domain sales, with 16 domains being sold for 6 figures. Free Credit Check.com & Credit Check.com sold together for $3million, although as the DomainTools Blog points out this was at a relatively low multiple of around 7x yearly earnings. Seniors.com sold for $1.8 million and even Blogging.com raised $135,000. The exuberance in the market even extends to the spam infested .info domain, with Houston.info selling for $17,000.â€
Many people who don’t follow the domain market, which is much like a real estate type of market, are wondering if they should hold on or sale their domains. “Ultimately it’s up to the market to decide the value of anything; however the domain sales market appears to be outperforming the established site marketplace,†reports Riley. Personally, I would put any domain you may have of value in the market now and see what the market would estimate it at.
Over $10M worth of domains sold in Moniker’s Live Auction last week in New York. Here is a list of some:
VintageAirplanes.com $5,700
StockTrades.com $25,000
PrivateTutors.com $16,000
TechnologyFund.com $10,000
Seniors.com $1,800,000
CreditCheck.com $3,000,000
JewishDeli.com $9,000
CarSales.com $400,000
Grandmothers.com $25,000
Lips.com $135,000
Houston.info $17,000
DUI.net $18,000
For a complete listing of the names sold (and not sold) offered at last weeks auction, visit: DomainNameWire.com.
Comments (2)
Wow! I had *no* idea the actual price tags attached to domain names…interesting to find out more what happens to the website/blog-flipping industry in which high-ticket domain names actually already optimized and with high-traffic!
Great site here Pablo! My first time here and we have some over-lap in topics…I do *not* speak from a ‘technical’ side at all!
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To our success & empowerment,
Ponn
Ponn- Thanks for the feedback. The domain industry has deff been interesting in the past couple of years but not enough people are aware of thier value…and now as more people get into the online game, they are willing to pay good $ for a good domain.
Much success to you as well! Thanks!