AfternicDLS Domain Name Results: $1,250 Median Sales Price in 2008

AfternicDLS is focused on a twofold strategic mission for our members who sell domain names:

1.    Liquidity
•    Drive the highest probability of sale through our DLS global distribution network

2.    Sales Price
•    Achieve the highest possible sales prices for our members through SMB (or “End User”) market targeting

Our Domain Liquidity efforts include an expanding number of resellers continually being added to the DLS distribution network.  For example, through AfternicDLS, domain sellers are able to actively promote their names on BuyDomains.com, GoDaddy, Moniker and many more domain sales platforms.
Increased Domain Liquidity is important but is only half of a seller’s revenue equation.  The price members are able to obtain for each sold domain is equally critical.

The median sales price achieved by AfternicDLS Expanded Promotion members in 2008 was $1,250.  We have selected median as truer measure of pricing performance than the average (or mean) as the median eliminates the impact of low volume but high dollar sales – we recognize that the majority of domain sellers are not selling names for 6 and 7 figures.  (median is number separating the higher half of a sample set from the lower half)
Why is AfternicDLS 2008 median pricing so much higher than the median recently announced by one of our competitors?

Simple – our customer base is willing to pay more.  Why is this?

This is where AfternicDLS SMB (small to mid-sized business) targeting comes into play.
•    Businesses place high value on the subjective brand attributes of a given domain name
•    Domain investors will typically (although not always) focus their valuation on revenue and organic traffic metrics – placing less value on a domain’s business branding potential

If I am starting a landscaping, travel or medical supply business, my focus will be on the memorable and marketable attributes of my online address – my domain is my brand and my company’s identity.

Consequently, I will place more weight on the brand potential of a domain name than I will its parked revenue multiple.

Put more simply, SMBs buy domain names based upon a very different set of valuation criteria than do domain investors.

It is this valuation differential that AfternicDLS leverages to drive high domain sales prices for our membership.

The DomainNameWire also recently had an interesting post on this topic – link here:
http://domainnamewire.com/2009/02/19/median-end-user-domain-name-sales-price-1200/

What are your thoughts on selling to end users versus domain investors. Do your experiences mimic DLS results – or are they different?

I welcome your comments on this topic – or visit DiscussNames to join the discussion – link here:
http://www.discussnames.com/showthread.php?p=92226#post92226

Good Selling,

Pete Lamson