Domain Sales Average 377% ROI
I just read an article on Zetetic.com which shows a study related to domain resale. The analysis was structured to show stats from over 8,000 domain name secondary market transactions collected from dozens of sources since 1996, and shows an average return on investment of 377 percent with the average name being bought and resold in 12.5 months.
The median buy price for a domain name was US$891, which was resold within 8.8 months for US$1,450, resulting in a 83 percent return on investment while the average sale saw 377 percent ROI from an original acquisition price of US$7,493 to sale of US$127,115. The longest holding period before reselling was 4.1 years.
The biggest return of 8800 percent was achieved with the sale of men.com, which was originally purchased in 1999 for US$15,000 and resold in 2003 for US$1.32 million. While not the biggest return on investment, the sale of business.com achieved notoriety with the highest sale price publicly available of US$7.5 million in 1999. Business.com was purchased in 1997 for US$150,000 netting US$7.35 million to the seller.
Not all transactions were moneymakers. Twelve of the 74 domain names resulted in a loss while four experienced no change in value.
These stats show that only 78 of the domains that were tracked out of 8000 did not show a positive return.
“These numbers uncover a golden nugget we always knew was there – there’s lots of money to be made in domain names,” Zetetic Analyst Keith Pieper said. “Several people have made million dollar fortunes reselling domain names, but you don’t need millions to speculate in this market.”
For more info visit Zetetic
Sidney Parfait
DropWatch.com
