Domain Name Speculators See Triple-Digit Returns

An analysis of 8,000 domain name resale transactions collected from dozens of sources since 1996 uncovers triple-digit returns for domain name speculators who buy and resell domain names for profit.

(PRWEB) May 26, 2005 -- An analysis of domain names that have been resold in the secondary domain name aftermarket since 1996 reveals a average return on investment of 377 percent with the average name being bought and resold in 12.5 months.

"These numbers uncover a golden nugget we always knew was there -- theres 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 dont need millions to speculate in this market."

Zetetic culled its exclusive resale transaction database of over 8,000 domain name secondary market transactions collected from dozens of sources since 1996. They identified and analyzed 74 domain names that had been resold in the secondary market at least once during that period.

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.

About Zetetic:
Zetetic is an independent domain name intelligence company providing analytical services to domain name registrars, brokers, owners, buyers, sellers, speculators and aggregators. With the largest diversified database of domain resale transactions, Zetetic has been independently collecting domain name market data since 1996. Zetetic currently uses this information to provide domain name appraisals using a scientific and statistically based appraisal methodology.

For more information, please contact Zetetic at 1-877-ZETETIC or visit http://www.Zetetic.com

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