The Domain Buyer’s Weekly Newsletter #4
Estimating when a domain name is likely to sell?
Let’s Talk Domains
Estimating when a domain name is likely to sell?
When valuing a domain name, the price we are likely to sell it for is important, however, as they always say in the game of supply and demand, the price is determined by what a buyer is willing to pay. Obvious right? Then why all the focus on appraisal tools? These one dimensional tools fail to provide arguably the most essential element of a valuation, the timeline for an expected sale. With the absence of a willing buyer the domain name is worthless.
Before we look at the various methods of assessing a domain name’s likely sale timeline let’s examine some of the data to see what the market can tell us.
Firstly let’s examine the sell-through-rate (STR). This is the percentage of domains that sell within one year.
In the domaining industry, most sellers quote personal sell-through-rates of 1 – 2%. This means if they list 100 domains for sale on the same day, within a year they would expect to have sold 1 to 2 of them.
It is rare to see a STR above 1.5%, although by taking a deep dive into this subject matter you will discover that there are different sell through rates for different root words. Take the domain MoneyGuide, the root word ‘guide’ has a 4.17% sell through rate with Atom.com and the word ‘money’ 2.36%.
These sell through rates combine both exact match and branded domain names. However it is also worth examining branded domain names in a little more detail.
Brandable domain names can be split into two segments:
One word dictionary domain names that can be used as a brand unrelated to the dictionary meaning. Examples are colors, animal names, as well as verbs and other nouns. Made up words and two+ word combos.
It can take a while to sell either of these two to an end user. And while the first category can be sold to other domain investors, the market for reselling brandables is more limited.
Brand Bucket, the brandable name marketplace, recently disclosed how long domain names were listed on its service before they were sold.
For the most recent month, the median listing time of domains that sold was 29 months. The shortest was 33 days and the longest was over 10 years.
Brandable domains, specifically made up words and keyword combos are tricky. It’s nearly impossible to do outside marketing to end users.
These are some of the factors determining when a domain name is likely to sell.
– Domain name quality and relevance
– Market demand and trends
– Pricing and valuation
– Domain name history and age
– Industry trends and seasonality
– Domain extension and TLD
– Keyword popularity and search volume
To achieve an above the average sell-through rate domain investors should:
– Research and understand market trends
– Price domains competitively
– Utilize domain name marketing and promotion
– Leverage social media and industry networks
– Optimize domain listings for better visibility
Tools available to estimate the sale timeline of a domain
There are few available tools that will determine this. Probably the best we could find is Atom.com ‘s new appraisal tool which shows the sell through rate on similar names.
Another way is to use ChatGPT or other AI tools. AI tools can yield some valuable data that if combined with Atom.com’s can provide you with a reasonable estimate.
Let’s use a few examples of the output from these tools for a few of the domain names listed on our platform.
Based on various domain name sales data and trends, here’s a rough estimate for the domain name FitFi.com.
Estimated sales timeline: 2-6 months
Limiting factors:
Downside (factors that could delay the sale):
1. Unconventional spelling: FitFi.com has an unusual spelling, which might make it harder for buyers to find or remember.
2. Limited brand recognition: The domain name doesn’t have an established brand or reputation, which can impact its appeal.
3. Niche market: The “fit” and “fi” combination might appeal to a specific niche, limiting the pool of potential buyers.
Upside (factors that could accelerate the sale):
1. Fitness industry growth: The fitness and wellness industry is growing rapidly, increasing demand for related domain names.
2. Unique branding opportunity: FitFi.com offers a distinctive and memorable brand identity, which could attract buyers seeking a standout name.
3. Potential for wordplay: The “fi” suffix could be leveraged for creative branding or taglines, adding value to the domain name.
Assumptions:
– The domain name is priced competitively.
– The domain name is listed on popular marketplaces and promoted effectively.
– The buyer is an end-user or a domain investor familiar with the fitness industry.
Keep in mind that domain name sales are unpredictable, and the actual sales timeline may vary significantly.
Here is a rough estimate for the domain name HomeCook.org
Estimated sales timeline: 1-3 months
Limiting factors:
Downside (factors that could delay the sale):
1. Domain extension: The .org extension might be less desirable than .com or .io for some buyers.
2. Limited brand flexibility: The domain name is descriptive and might not appeal to buyers seeking a more abstract brand identity.
3. Competition from similar domains: Other domain names might attract buyers instead.
Upside (factors that could accelerate the sale):
1. Descriptive and memorable: HomeCook.org is easy to remember and clearly communicates its purpose.
2. Growing interest in home cooking: The pandemic has increased interest in home cooking, making this domain name more attractive.
3. Non-profit or community potential: The .org extension could appeal to non-profit organizations or community groups focused on cooking or food-related initiatives.
Assumptions:
– The domain name is priced competitively (around $2,000-$5,000).
– The domain name is listed on popular marketplaces and promoted effectively.
– The buyer is an end-user or a domain investor familiar with the food or cooking industry.
HomeCook.org is a more descriptive and memorable domain name, which could lead to a faster sales timeline compared to FitFi.com. The growing interest in home cooking and the potential for non-profit or community use could also accelerate the sale.
In conclusion there are few if any tools available that will calculate the estimated time it will take to sell a domain name. And if there was, the reality could be much different with a sale possible in 1 day, 10 years or even never. However by combining data from AI and other valuation tools, such as Atom.com, investors can get a decent gauge of the likely timescale involved.
Recent Domain Sales
MadeInIran.com $250,000 Private
X.game $160,000 Sedo
69Bet.com $140,000 Sedo
Twin.ai $95,000 Sedo
TextFree.com $81,102 Sedo
27Bet.com $80,000 Sedo
Musik.de $53,999 Sedo
Voice.art $40,000 Atom
Domain Name News
- Verisign Lowers Guidance: Verisign has lowered its forecast for the year after domain registrations disappointed again in Q2. The company ended the quarter with 170.6 million .com and .net domain name registrations.
- Republican Lawmakers Open Inquiry: Three Republican lawmakers have opened an inquiry into Verisign’s contract to run the .com domain name registry.
- Latest .com Data: ICANN has published the latest data from Verisign covering the .com namespace. The data covers March 2024. GoDaddy is down, while Gname is up.
- New Phishing Report: Interisle published its Phishing Landscape 2024 report, naming top-level domains and registrars commonly used in phishing attacks. The company analyzed 1.9 million phishing attacks.
- End User Domain Name Sales: A bank, a tax law firm, and an IT infrastructure company bought domain names. Sedo is taking a two-week summer break from reporting domain name sales.
- Efty Launches Efty Pay: Domain name sales platform Efty has launched the first iteration of Efty Pay for sellers. For the initial launch, Efty customers with an active subscription can import leads to use Efty Pay.
New To DomainMoonshots.com
Recently added domain names to DomainMoonshots.com include:
Resources
AI Articles – How to make money buying into the AI domain name gold rush
How to Make Money Buying Domain Names articles
We examine various sectors and explore available domain opportunities including:
- Marijuana
- Cryptocurrency
- Drinks
- China
- Life Coaching
Listen to our podcast Domain Moonshots, the show that searches for premium domain names perfect for launching a business or building a portfolio of quality domain names. This week we talk about CreatorCoin.net, a domain name that is a crown jewel in its space, with the .com being owned by X/Twitter and HomeCook.org a name that receives over 14,000 keyword searches every month.
We also operate CoinDomain.store and MarijuanaDomain.store
These platforms are designed for the end user with a great idea or someone looking for that spark. However, let’s not forget the domain investor searching for valuable domain names in growth markets. There are few markets that are experiencing the phenomenal growth of cryptocurrency and marijuana. Check out some of the best available domain names in the crypto and marijuana market.
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