TRAFFIC Domain Name Conference Auctions Evaluated in New Analysis by Research and Appraisal Company Zetetic

Share Article

Based on analysis of 34,000 historical domain name sales, Zetetic projects the upcoming TRAFFIC Conference Domain Name Auction in Miami to yield nearly US$2 million in sales.

Recent analysis conducted by Zetetic (http://www.zetetic.com), a domain name research and appraisal company, found that domain names sold at TRAFFIC domain name conference auctions yield a price seven times higher than the overall market average. The company analyzed over 34,000 historical domain name sales as recent as August 2007. Zetetic then applied its findings unique to TRAFFIC auctions to project the value of the 50 domain names available for live auction at the October 9 TRAFFIC Conference in Florida.

“A large price premium is seen when a domain name is sold through the TRAFFIC auctions,” Zetetic analyst Keith Pieper says. “This analysis tells us that the fair market value for any given name sold through traditional channels may be much lower than sellers expect. However, if a seller can find the right motivated buyer, the name may break into the top 6 percent of all sales that receive over $10,000. But these types of premium sales are not the norm and are not typically reflective of the fair market average. To go from an average price to a premium price can just take sitting and waiting for the right buyer to come along.”

Refer to the chart “TRAFFIC Miami 2007 Domain Name Appraisals” (via the attachment or at http://www.zetetic.com/about-zetetic/press-release-9-28-2007.html).

Zetetic’s analysis found certifiedpublicaccountants.com as the domain for auction with the lowest fair market value, appraising the site a fair market value of $2,600. Crosswordpuzzles.com received Zetetic’s highest appraised fair market value, $299,800.

To arrive at the projected valuations for the upcoming TRAFFIC live auction domain names, Zetetic analyzed 352 historical TRAFFIC domain name auctions and modified its proprietary appraisal methodology to reflect the premium nature of domain names sold at TRAFFIC domain name auctions. The company then analyzed more than 34,000 broad market domain name sales between 2006 and 2007. Zetetic found that the average sale price for names sold at TRAFFIC is $32,624, while the overall market average for 2007 is $4,221.

Refer to the graph “Domain Market Sales Analysis” (via the attachment or at http://www.zetetic.com/about-zetetic/press-release-9-28-2007.html).

Analysis of the 34,000 domain name sales between 2006 and 2007 found that 94 percent of all domain names sell for less than $10,000, with about half selling between $1,000 and $10,000. In contrast, 56 percent of domain names sold at the TRAFFIC auction yield more than $10,000, on par with the premium price range.

“While the competitive nature of an auction format, in general, tends to drive up prices, TRAFFIC auctions in particular see premium prices being paid likely due to their live nature,” Pieper says.

“While I would expect to see an actual sales price variance from these forecasts, we are confident that the appraised values reflect the premium nature of each domain name in the context of a premium sales venue,” Pieper says. “In essence, we see these as fair market values based on the TRAFFIC auction market.”

About Zetetic
Zetetic is an independent domain name research company providing appraisal and analytical services to domain name registrars, brokers, owners, buyers, sellers, speculators and aggregators. Zetetic has aggregated more than 47,000 domain sale transactions across more than 100 sources since 2003 and has a historical database reaching back to 1996. Zetetic now adds nearly 2,000 additional transactions to its database each month. Zetetic currently uses this information to provide domain name appraisals directly to domain name owners, buyers and affiliate resale partners using algorithmic and analyst appraisal methodologies.

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

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

KEITH PIEPER
Zetetic
877-938-3842
Email >
Visit website