Domain industry trading strong in first quarter 2019

Global market conditions are not perfect with escalating US and China trade war, blockchain being used to shift the global economy, and artificial intelligence algorithm autonomous trading bot applying further pressure to stocks trading and different industries.

One industry seems to be fairing much better than others, and that is the domain trading industry.

For some, the domain investing business is the most profitable business since the internet became available. Registering a domain name cheap, trading and reselling them for millions of dollars worth seems like a dream come true, but those with insight into domain industry know it was not a lottery lucky draw that makes a domain name hold such value, but the research and knowledge of different industries and their needs, embodied in a perfect domain name.

The overall number of domain registrations in the first quarter of 2019 can be compared to the last quarter of 2018 and is significantly stronger than in early 2018. However, the true robust of the domain name market is in the domain trading transactions during Q1 of 2019.

Reports provided by ESCROW claim that they handled over $85 million in total transactions with the domain name and website transfers. Later we come to the knowledge that of those, $15 million is solely from website sales but for the sake of industry transaction volume comparison, they are represented combined.

total domain trading transactions

Compared to previously received quarterly reports dating back to 2017, only the Q2 of 2018 stands better. The sales figures are up, supported by increased demand and confirmed by aftermarket domain sales with over 30% more inquiries for different owned or premium domains.

Aftermarket domain trading is indeed in good shape, as end-users look for quality domain names for their company website, product or another online project.

Domain names with the highest value

Back to information provided by ESCROW, we must note that major part of their transactions stems from the United States, while Canada is second. China and Hong Kong are next, viewed as two separate domain trading regions though if we combine these two we would conclude their number of transactions will surpass Canada.

Various factors influence the value of domain names, still, having a developed website behind a domain name that is available for purchase did have the strongest impact on domain value. The average selling price for such domain has almost doubled when compared to the previous quarter, while domain names without content sold for the same average price in the last six quarters.

top domain trading regions

It was not really surprising that two and three letter domain names did hold the highest average value, while four letter domains value declined. By the look of it, online businesses have recognized that having a high-quality domain name is a critical investment.

We would recommend …

While the global demand for domain names did shift to a degree, domain traders morale is bolstered with overall positive industry trends. There is a saying that a rising tide lifts all the boats, and if your boat is with the domain trading industry then you are in luck!

domain name average price

Statistics show that you can receive more than the double value from a domain name with a developed website behind it, and our opinion is that the investment is worth every penny. You do not get a chance to double your profit every day, so take it! Invests a bit to get a lot more!

Conclusion

New and rising technologies such as robotics and AI will have a certain impact on different kind of industries. Domain trading industry, in particular, has taken a shape that resembles real estate business having certain domain names holding a much higher value than others, because of their different properties.

Owning a two or three-word domain name I am certain that it can not achieve the value of an extremely sought-after short one-word domain, but the trend for doubling domain value with a developed website is a kind of a breakthrough for many domain traders.


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