The End User Market Remains Strong

Premium domain names continue to be an outstanding investment.

This is nothing new to domain investors, and despite a recent slowdown in the reseller market, the actual numbers confirm that the end user market remains strong.

Looking at DNJournal’s List of Top 100 Reported Sales of 2006,

2007 and 2008, the top 100 median sales price changed from $124,000 in 2006, to $197,500 in 2007, to $175,752.50 in 2008. After 2007’s massive upsurge of 59.27%, 2008 brought with it a 11% drop. However, 2008’s median price is still 41.74% higher than that of 2006.

A New Age of End User Sales

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.

None of these developments appeared to have any effect on end user sales, which remained very strong in 2008. This is understandable as end users do not care about PPC revenues and the small isolated world of the domainer-to-domainer marketplace.

Let’s look at the 2008 numbers and compare them with those of 2007…

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