I have been following the Sedo domain name sales reports for years now. This week’s report was the smallest I have seen.
Sedo domain name sales have been on a steady decline for 3-4 years now but as this is going there will be no Sedo left within a year or two. At least not like it used to be.
The Sedo website and system hasn’t been updated for years, commissions have been raised (probably to keep the profit up while overall sales plummet), and frankly I wonder what domainers are still selling domain names at Sedo. Probably only some old clients that haven’t heard of new services or don’t bother changing platforms and maybe some domainers that want to have their domains listed at every platform available.
So here is a comparison from this week’s report and last year’s report of almost the same week:
Sedo’s Weekly Sales List 2015-06-22
$1,6m (autism.rocks 2015-06-18 100.000 USD)
53% of total sales were the result of Buy Now listings.
Total: 218 (93 above $2,000)
Sedo’s Weekly Sales List 2016 06-20
63% of total sales were the result of Buy Now listings.
Total: 59 (59 above $2,000)
You can instantly see that absolute value has dropped by half a million (if you take out autism.rocks that is not the norm), there are only 59 domains reported this year compared to 218 last year, sold domains are a bit down, and “buy now” listings are up.
I tried to take for granted that Sedo reports true numbers but I have many questions and doubts.
In last year’s report almost half of the $1,6m worth of domains were actually in the report. This year the report contains about a 3rd of all sales ($1m). Sedo charges extra for sellers and buyers to make a domain name sale private so I doubt that many of the 4 and 5 figure sales contribute to this effect. Is this because of some big sales?
Sedo has never (to my knowledge) issued a domain name sales report with less than $1m in sales. And they have issued numerous reports exactly at $1m. Am I too suspicious or is there something going on? I highly doubt that Sedo consistently makes these big sales to keep the total of money exchanged above $1m or exactly at $1m week after week.
Last year’s report had 218 domains in it while this years report only has 59 although there is no such big difference in number of total sold domains (545 and 492).
Are most of the sales at Sedo these days low “buy now” listings through its MLS service and thought the new auction service that lets you auction any domain without an initial bid? Probably so.
Seriously a report with only 59 domains? The previous week had 55 and the week before that had 75 domains. Reports used to be of 200+ domains consistently.
This is no summer slow down as I am comparing with the same week from last year and I checked many other weeks before these.
So what has really happened? Sedo says 63% of all domains were “Buy Now” listings. If you factor in the tens of domains sold at these cheap Sedo auctions you will get in a very high number.
So it seems that Sedo has completely lost the “negotiation” domains sales mainly because no one wants to pay these extremely high commissions AND also not know who they are negotiating with. There are way better options to Sedo for this. Even a simple lander to your website will save you thousands of dollars every year.
So Sedo has almost completely lost the middle range of the market. The 4 and 5 figures sales that make the bulk of the everyday business of domaining.
The way parking is doing at Sedo, as more people leave Sedo for other parking/sales platforms to save money, and the number of sales diminishing you can all guess where this company is headed.
A couple of big sales and a few ccTLDs are holding it together. It only takes a couple of brokers to leave Sedo and everything will collapse.
So is Sedo slowly dying? Some will say it is already dead. It is still riding on its past good reputation. But that reputation has been tarnished.
I don’t feel sorry for Sedo. They made a lot of money of domaining and they just stop caring and became greedy. No innovation and no effort in the past few years. Just an increase in commissions.
I am only sorry for a few great people that are still working for them.