Record domain name sales in Q1 of 2010

A Sedo domain market study has confirmed a record sale of domain names in this year’s first quarter, in which close to 12 000 domain names were sold via the Sedo marketplace. These sales take the record for the highest selling quarter with an 18.6 percent increase from Q4 of 2009.

The Sedo study has indicated a swell in generic (gTLDs) and country code Top Lop Level Domains (ccTLDs). Sedo believes that the growth in the domain name market over the last quarter is due to an increase in market spending among larger corporations and the introduction of one and two-character domains and IDN domains that use a non-Roman script.

Closer to home, secondary domain markets have developed in the .au space with both Drop.com.au and Netfleet.com.au leading the way in sales which are achieving record prices. Drop.com.au shows domain sales as high as $18,000 for carparts.com.au while Netfleet achieved $6000 for graphicdesign.com.au.

Sedo is expecting a rise in sales to continue over 2010 as it believes that companies are starting to understand the critical role a domain name strategy plays in driving a successful marketing campaign.  Many large companies are investing heavily in branding and domain name sales. The study also highlights the importance for trademark owners to get in quickly and take action to protect brands.

Cooper Mills Director and Technology Lawyer Erhan Karabardak believes that the market will continue to grow and achieve higher prices, he says that:

“With the end of the Global Financial Crisis, marketing budgets are increasing and companies are becoming more active with their online sales and marketing strategies which are key in the increasingly competitive market place.“