Premium Domain Values Increase By 59%, But Only 31% Actually Developed
Premium domain names continue to be an outstanding investment. This is nothing new to domain investors, and now the numbers confirm what many of us have known for several years.
Looking at DNJournal's List of Top 100 Reported Sales this year (2007) and last year (2006), the top 100 median sales price has increased from $124,000 in 2006 to $197,500 in 2007.
That's an upsurge of 59.27%, which is a pretty good representation of this year's bull market in premium domains.
Owners of LLL (three letter) domains have seen the values of their domains increase by at least this percentage over the course of 2007, and the same applies to many top generic domains whose sales either remained private or simply did not meet the $100,000 threshold to be included in this year's top 100 list.
Is there a drawback to this continuing boom?
Fears of the domain market overheating have shown to be been unfounded so far. The real concern may be that with domain values shooting up so rapidly, very few domain owners are devoting any of their resources to actually developing their domains.
After all, there is simply no point in developing a domain you just bought if you can resell it a few months later at a significant profit. Broadly declining PPC (pay per click) revenues do not seem to affect this situation at all, at least for the time being.
How severe is the situation?
Let's look at the numbers:
Of the 105 highest priced domains sold in 2007, only 33 domains (31%) have been developed or redirect to a developed site, 3 are affiliate sites, and 10 are either abandoned or appear to be under development. 4 domains don't resolve at all and a massive 55 domains (52.58%) display PPC ads.
While we can safely assume that many retail sales (from domainer to end users, or among end users) go unreported and therefore do not show up in domain sales charts, I'd love to see some examples of premium domains being developed into a profitable business not just by large companies but above all by domainers and up-start companies.
Such domains could serve as shining examples to truly reinforce the monetary value and marketing power of generic domains to potential mainstream buyers, who are - for the most part - still sitting on the sidelines.
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The 105 Top Domain Sales in 2007 |
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| Porn.com | $9,500,000 | PPC ads | |
| Computer.com | $2,100,000 | PPC ads | |
| Seniors.com | $1,800,000 | Redirect | |
| Tandberg.com | $1,500,000 | Developed site | |
| Scores.com | $1,180,000 | Developed site | |
| Vista.com | $1,250,000 | Redirect | |
| Chinese.com | $1,120,008 | PPC ads | |
| Guy.com | $1,000,000 | Coming soon | |
| Topix.com | $1,000,000 | Developed site | |
| Poker.de | $957,937 | Developed site | |
| Investment.com | $900,000 | PPC ads | |
| Melbourne.com | $700,000 | PPC ads | |
| Dollars.com | $650,000 | Developed site | |
| Job.at | $590,949 | Coming soon | |
| Cardiology.com | $550,000 | PPC ads | |
| SheMale.com | $520,000 | Developed site | |
| Rebate.com | $500,000 | Developed site | |
| Rebates.com | $500,000 | Developed site | |
| Invention.com | $500,000 | PPC ads | |
| AZ.com | $500,000 | Coming soon | |
| LI.com | $500,000 | Redirect | |
| Greenhouse.com | $500,000 | Redirect | |
| SportingGoods.com | $450,000 | PPC ads | |
| Bald.com | $400,000 | PPC ads | |
| Iran.com | $400,000 | PPC ads | |
| CarSales.com | $400,000 | Redirect | |
| Cowboys.com | $370,000 | PPC ads | |
| Gibraltar.com | $360,000 | PPC ads | |
| Greeting.com | $350,000 | PPC ads | |
| Supplies.com | $323,530 | not working | |
| Recycle.co.uk | $309,901 | Developed site | |
| Resume.com | $300,000 | PPC ads | |
| Text.com | $300,000 | Redirect | |
| RealEstate.net | $300,000 | Developed site | |
| BDSM.com | $295,000 | Affiliate programs | |
| Xmas.com | $294,200 | PPC ads | |
| UI.com | $275,000 | Coming soon | |
| Table.com | $260,000 | PPC ads | |
| Locals.com | $250,000 | Affiliate programs | |
| Buckhead.com | $250,000 | Developed site | |
| Mobile.co.uk | $247,921 | PPC ads | |
| Yearbook.com | $237,500 | PPC ads | |
| ET.com | $225,000 | PPC ads | |
| Spices.com | $220,000 | PPC ads | |
| Televisions.com | $215,000 | PPC ads | |
| CrosswordPuzzles.com | $210,000 | PPC ads | |
| Masculin.com | $201,792 | Developed site | |
| Perth.com | $200,000 | PPC ads | |
| DIY.net | $200,000 | PPC ads | |
| Settlement.com | $200,000 | PPC ads | |
| CriminalLawyers.com | $195,000 | PPC ads | |
| FreeHoroscope.com | $185,259 | Developed site | |
| Fly.co.uk | $181,042 | Developed site | |
| Chinese.net | $180,000 | PPC ads | |
| Ringtones.net | $175,000 | Developed site | |
| Clock.com | $175,000 | PPC ads | |
| Campgrounds.com | $175,000 | Developed site | |
| Walkers.com | $175,000 | Redirect | |
| BoiseIdaho.com | $175,000 | Developed site | |
| DreamLife.com | $171,750 | Coming soon | |
| Promotion.com | $170,000 | PPC ads | |
| Event.com | $165,000 | PPC ads | |
| Psychologists.com | $160,000 | PPC ads | |
| Connected.co.uk | $157,931 | Not working | |
| Via.com | $157,500 | PPC ads | |
| Poker.mobi | $150,000 | PPC ads | |
| Guy.com | $150,000 | Coming soon | |
| MegaYachts.com | $150,000 | PPC ads | |
| Pottery.com | $150,000 | PPC ads | |
| OL.com | $150,000 | Coming soon | |
| InterracialSex.com | $150,000 | Affiliate programs | |
| Ringtones.mobi | $145,000 | PPC ads | |
| Charters.com | $140,000 | PPC ads | |
| Lips.com | $135,000 | PPC ads | |
| Zimbabwe.com | $130,000 | Coming soon | |
| CaribbeanVacations.com | $130,000 | PPC ads | |
| Sportsbook.mobi | $129,800 | Developed site | |
| UB.com | $129,420 | PPC ads | |
| One.es | $128,947 | Not working | |
| HalfPriceTickets.com | $125,000 | PPC ads | |
| Supernatural.com | $125,000 | PPC ads | |
| Exito.com | $121,560 | Developed site | |
| HotProperty.com | $120,000 | Redirect | |
| PX.com | $120,000 | PPC ads | |
| Travel.info | $116,000 | Coming soon | |
| Note.com | $115,000 | PPC ads | |
| Refresh.com | $115,000 | Developed site | |
| Forest.com | $110,721 | PPC ads | |
| News.mobi | $110,000 | PPC ads | |
| Cab.com | $110,000 | PPC ads | |
| Femmes.com | $110,000 | Developed site | |
| OTV.com | $110,000 | Not working | |
| UltimateGuitar.com | $101,676 | PPC ads | |
| Hosting.mobi | $101,000 | Redirect | |
| WifeLover.com | $100,930 | PPC ads | |
| Brisbane.com | $100,000 | PPC ads | |
| Passover.com | $100,000 | PPC ads | |
| Debit.com | $100,000 | PPC ads | |
| Bulk.com | $100,000 | PPC ads | |
| TreatmentCenters.com | $100,000 | Developed site | |
| MyFinance.com | $100,000 | Coming soon | |
| AMT.com | $100,000 | Developed site | |
| 15.com | $100,000 | Redirect | |
| VN.com | $100,000 | PPC ads | |
| Track.com | $100,000 | PPC ads | |
[...] we approach the end of 2007, it is interesting to note some of the top domain sales of the year. DailyDomainer has a very good list of the top domain sales, as well as what they are being used [...]
We've talked to a number of domain portfolio owners about development and it quickly becomes challenging to define a development plan with them. All domain development involves a myriad of elements, but primary challenges for most domain owners involves content development and search engine optimization. And, there is a great deal of overlap with these discrete marketing processes. Then, you get into timeline issues in terms of time it will take for a developed property to generate search rankings and quality traffic to drive revenue - this usually takes 60-90 days to gestate, unless you are doing keyword arbitrage. I think most domainers are throwing up their hands and saying this takes too much time and resources and I can't measure the back end ROI and they are just sitting on the domain portfolio, leveraging parking traffic and reselling later. It's the high tide raises all boats theory of business development for many! The domain is appreciating in value and they are sitting on it while waiting for the market to expand.
Generic Directories have been well under construction for some time under the banner of GenericAds.com these are what I believe easy and cost efficient directories at .99 cents a day, with additional products, such as photo displays, and more importantly, generic email and web page address systems that are unique and user friendly.
Some of these are as follows.
AutoBodyShops.com
AutoEngineers.com
AutoTrimmers.com
AutoRepairers.com
AutoElectrics.copm
AutoPartsRecyclers.com
CarCarrying.com
WreckingYards.com
TruckWreckers.com
CarYards.com
RepairersManuals.com
NewManuals.com
These are some that are already active sites and have been for some time with many more to come. Some directories are for sale , while many are for lease and can be developed by the customer to suit their own requirements. I believe the future of the net is generic directory domains.
Anyone with generic directory domains can join our network by arrangement.
[...] domainer har lavet en liste over de 105 domæner der blev solgt dyrest i [...]
[...] DailyDomainer) Noticias [...]
[...] 2007 (Por Domisfera) - Microsoft sues domain registrar red register (Por Domain Name News) - Premium Domain Values Increase by 59%, but only 31% actualy developed (Por Daily Domainer) - Nombres de dominio y política, hablar por hablar (Por BlogDominios) - Los [...]
[...] 30, 2007 DailyDomainer publica un artículo relativo a la revalorización de los dominios premium en 2007, según el cual [...]
Guy.com appears for $1,000,000 and $150,000 ?
Has it been sold twice ?
I think, this is very expensive. It is not wuorth. Greetings
Does anyone know what is the ICANN price cap for verisign .com/.net registry-level fee? I mean, the fee that ICANN charges on top of the October 15, 2007 price increase to $6.42 per .COM and $3.85 per .NET ? Thanks.
I am a bit surprised how domains bought for thousands or millions dollars are left parked? Is the typed-in traffic enough for a positive ROI?
Or the owners have no idea how to develop a website on such domains?
I believe is the second one
I do not understand how these guys expect to get that much for those domains. The price seems a little steep.
Generic directory domains are unique and are a global exclusive, unlike normal real estate where if you were looking for a house in the $500K bracket an agent
could direct you to possibly several in the area to choose from.
Take a domain like sportinggoods.com that sold last year for a reported $450K with a name like this their is only one globally - "FULL STOP" no more to choose
from, no need to use the traditional search engines. Straight to the domain bar, Fast, Simple, Easy. Not only that the generic directory can give unique email and web
page addresses that no other directory can give. A portal of such generic directories would bring a premium -
And would give a corporate a considerable advantage and an extensive revenue potential.
Though not premium domains, I hardly note any difference in offers on my developped domains versus parked domains. ROI of parking versus development depends on the subject of the domain.
I think I will never understand why people pay so much money and park the domain. Is the income that high to have a positive ROI?
I doubt it.
Is such a big question for me how do they come up with these prices…I mean Track.com was sold for $100,000 and SportingGoods.com was sold for $450,000..does it make any sense for you guys?
Wow - I had no idea domains could go for so much money - maybe I should see if anyone wants to buy the 100s I have. Really enjoyed your post with all the details - thanks!
It's crazy not to develop this domains. Someone is leaving a lot of money on the table. And I believe it functions as a brake on the domain industry as a whole. Development is crucial.
DomainerPro on Feb 24th, 2008 at 12:43 pm
I agree - developed sites not only increase the value, they generate revenue.
Brad Christopher on Feb 25th, 2008 at 10:15 pm
I use combinations such as Ads24×7.com linked into our network for additional searching as we build the directory network.
I believe their are still some great generic domains available -
[...] at around $25 million - a jump of almost 20% over Q1/2007. Additionally, the Daily Domainer's analysis of 2007 sales data showed that the top 100 median sales price increased from $124,000 in 2006 to $197,500 in 2007, an [...]
Surprised to see three letter domains selling price in 5 digits. I have one with with no numeric or hyphen, starting with "A" registered accidentally long ago. I am trying to find a individual broker, as I do not want to follow procedure of snapnames or sedo. Any suggestions??
I would prefer when purchasing a domain to have a fully developed site, I think that you have more chance of selling it as well as you see the proper daily usage that the website produces.
Unless you are just buying a domain to start a new venture but buying a domain at these prices for me is not justifible.
Premium domain names are more valuable than typical domain names because they are based on common words and phrases that Web surfers frequently use when searching for sites like yours. IX-ONE.COM does not own these names, but is one of the few registrars offering them on behalf of their third-party owners.
Register your domain names here:
[...] Premium Domain Names: Ever wondered what is the price of the top domains on the Internet and what they are used for? Check this article then. [...]
Oh my God, even if Porndotcom was sold for that amount of many, in how many years the investor will earn the money back?
haha, looks like porn is more valuable then the internet.
I would adopt if purchasing a area to accept a absolutely developed site, I anticipate that you accept added adventitious of affairs it as able-bodied as you see the able circadian acceptance that the website produces.
Unless you are just affairs a area to alpha a new adventure but affairs a area at these prices for me is not justifible.
It may come as a surprise to many that these premium domain names sell for so much money. Don't forget that the developed domains which have revenues and businesses built on them sell for even much more.
Business.com was sold for $345 million
Youtube.com was sold for $1.65 billion
About.com was sold for $410 million
And the list goes on.
Premium domains will be sold at huge values merely because of the value and credibility that they bring to the businesses that brand them.
Selling a domain name is a different business from selling delveloped websites.
[...] As we pointed out last year, with domain values shooting up so rapidly, very few domain owners were devoting any of their resources to actually developing their domains. There was simply no point in developing a domain you just bought if you could flip it a few months later at a significant profit. Broadly declining PPC (pay per click) revenues did not affect this situation at the time, but they have now contributed to the rapidly falling liquidity among domainers. [...]
cool pics
[...] As we pointed out last year, with domain values shooting up so rapidly, very few domain owners were devoting any of their resources to actually developing their domains. There was simply no point in developing a domain you just bought if you could flip it a few months later at a significant profit. Broadly declining PPC (pay per click) revenues did not affect this situation at the time, but they have now contributed to the rapidly falling liquidity among domainers. [...]
[...] As we pointed out last year, with domain values shooting up so rapidly, very few domain owners were devoting any of their resources to actually developing their domains. There was simply no point in developing a domain you just bought if you could flip it a few months later at a significant profit. Broadly declining PPC (pay per click) revenues did not affect this situation at the time, but they have now contributed to the rapidly falling liquidity among domainers. [...]