Mike Mann made an announcement that few people were expecting. Mike Mann plans to allow people to sell their domain names next to his on his domain name aftermarket at DomainMarket.com.
Of course he wants to have control on what domains are being sold and how much they being sold for. He plans to have the software to accept domains in 2-3 months from now. (He then said 30 days.)
The brokerage commission fee will be just 5% but he has some strict requirements so that your domains can be listed on his aftermarket.
The new brokerage will only offer .com domains priced above $10,000 initially.
Here are a few of the requirements to have your domains listed on the DomainMarket.co
- The domain names must be .com
- The domains must be pointing to the DomainMarket.co
- Mike Mann will approve all names
- Domains must be priced and prices must be approved my Mike Mann himself
Here is what he said about this on Facebook:
“I never wanted to offer domain brokerage because of other people’s bad domains and prices cluttering my web site (also I don’t have ads or ad links). Now I will offer, but only for .Com; only names pointing to DomainMarket.co
“it will take 2-3 months to get our software up to speed, in the meantime get your assets organized and priced properly”
“Appraisals are everything and the only thing in the premium domain space; if they are too high name never sells, too low name goes too cheap. Moreover its almost impossible to get investors, capital, or create a real market at all without the trust and liquidity provided by valid appraisals. Also you can’t buy low and sell high, or profit in the long run; not enough market makers, spreads not realistic. Most domains are worth $0, delete those names or at least the broker listings to begin to create a market. Many millions of tradeable .Com that have value will remain and the market and FMV will eventually develop, more better comps.”
“Fasttracking new super premium domain brokerage service to 30 days from 180.”
Mike Mann is the owner of DomainMarket.com that offers more than 260,000 premium domain names for sale.
These are the stats that Mike posted on Facebook in January 15, 2017:
Updated DomainMarket.com stats:
Domains available for sale: 269,013
Domain price average: $12,539
[Last 30] Sales average: $2,598
[Last 30] New users: 1,777,725
Here are all the Mike Mann’s sold domain name reports published on OnlineDomain.com in 2016:
Good news…especially Mike approving names. Keeps down on clutter.
Interesting to hear he’ll be opening his doors. Change and experimentation are a great thing to see. And a 5% commission is generously low.
But what does this mean?
“Sales average: $2,598”
Per day? Per domain?
If it’s per day, then that’s less than $1 million annually.
if it’s per domain, then there’s a big discrepancy between a $2.6k average sale price and a $12.5k average list price. Not necessarily a problem, but quite interesting.
That skew would mean the expensive stuff is window dressing, with a much lower sell-through rate. If every domain were priced based on consistent market demand, then the sell-through rate would be the same for all pricing tiers; and the average list price would match the average sale price. Instead, it seems DomainMarket churns through lower-priced inventory, while the expensive items gather dust in the shop windows.
That’s a reasonable way to get people in the door. Jewelers, art galleries, and luxury car dealerships do the same thing. High end items aren’t meant to sell. They’re meant to stay put as advertising to get people to come inside and buy the cheaper stuff.
I think it is per domain. It just shows that mostly the cheaper domains are selling. But Mike has a few domains priced at 1m+ that centainly affect the average list price. (Country names, regions, etc.)
Right. That’s how I interpreted it too.
The mean always skews more than the median. So I’d be interested in comparing the median list price with the median sale price.
Or if Mike Mann doesn’t want to share the median price info, we could compare his mean price data with mean price data at other market places to see which of them skews most.
Looks like hes trying to build another buy domains for an exit?
An exit was/is a possibility with or without this.
Buyers not sellers determine valuations. Occams Razor JAS 2/16/17
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) Former ( Rockefeller I.B.E.C. Marketing Analyst/Strategist) (Licensed C.B.O.E. Commodity Hedge Strategist) (UseBiz.com)
Sellers set the prices. It’s up to them if they want to sell or not. If they want they can lower their prices.