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The Domain Secondary Market


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Domain Acquisition - How much is too much?


By Mark Jackson, Search Engine Watch, Sep 9, 2008
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Recent .nz sales       Browse>>
voyager.co.nz $1,200 SOLD    
rentalproperties.co.nz $5,020 SOLD    
goals.co.nz $920 SOLD    
vacancies.co.nz $2,300 SOLD    
looseweight.co.nz $1,000 SOLD    
takeaways.co.nz $1,969 SOLD    
supermodels.co.nz $500 SOLD    
university.ac.nz $500 SOLD    
real-estate.co.nz $5,000 SOLD    
The big internet land grab

Australian internet entrepreneurs are earning millions of dollars each year by spotting the true value of what's in a name.

The so-called "Domainers" search out generic or popular names that have not been turned into websites and then register them for as little as $7.60 - names such as bedroomfurniture.com.

"Domain parking" is estimated to be worth more than $1 billion worldwide and Australia's market is growing.

The Australian Domain Name Administrator (auDA), the governing body for all domains ending in "dot au", will lift a ban on the sale of dot au domains in June, opening an expected thriving market in their sale. AuDA chief Chris Disspain said the ban was being lifted because "it made no sense".

Domainers can cram the websites with advertisements, then leave them idle and sit back as they earn a few cents per click - big bucks when you have a portfolio of thousands.

Their owners say they supply people with a service, providing information on topics they're interested in, including furniture and publishing.

Parking and domain trader Dark Blue Sea, a public company based in Brisbane, has a portfolio of 550,000 domains through its subsidiary, Fabulous, believed to be the second biggest holding in the world. Last financial year it reported a profit of more than $3.5 million through advertising revenue and domain sales.

Dan Warner, chief strategy officer, values the company's portfolio at a staggering $500 million.

The company recently sold bedroomfurniture.com for about $280,000. It bought the site for about $40,000 several years ago.

Mr Warner said other domains the company holds such as Manufacture.com, Doctorate.com and Publishing.net are good examples of names bound to draw a lot of traffic.

"Domain names can be great assets as they cost very little to hold, and if you do nothing more than buy them and stick them in a drawer for a few years they can sell for large returns," Mr Warner said.

Source: The Age