Guest Post: The Domain Market Is Booming, And It’s No Wonder Why
This is a guest post from Jason Miner, who oversees Afternic’s Sales, Business Development & Customer Service departments while also guiding the Product and Development teams. With over 6 years at Afternic and more than 15 years of senior management experience, Jason brings adept leadership skills to the helm of Afternic.
The domain market for primary registrations and premium domains shows no sign of slowing down. From the latest Verisign Domain Name Industry Brief : “Registrations have grown by more than 20.4 million, or 10 percent, since the fourth quarter of 2010” and “the .com and .net TLDs experienced aggregate growth, reaching a combined total of 13.8 million domain names in the fourth quarter of 2011.”
It’s also been almost two decades since the first e-commerce purchase, yet recent studies estimate that around 40% of small to mid-sized businesses still don’t have a website! From McKinsey’s Internet Matters report: “All business leaders, not just e-CEOs, should put the Internet at the top of their strategic agenda.” These indicators show that there is a great deal of unmet need for premium domain names for ecommerce sites that are yet to be built.
Since a solid domain is the foundation of any business’s website, the domain industry – and especially the aftermarket – is poised for a huge amount of growth. Improvements in the premium domain transaction process and increased trust in the aftermarket have made it easier for customers to find and purchase premium domains.
Improved Processes Leads to Improved Liquidity
Afternic has made a substantial commitment to and investment in technology to improve the premium domain sales process. Whereas premium domains were previously subjected to a lengthy escrow process, those for sale through Afternic Premium Promotion are now available to the buyer almost immediately. This fluid transaction process is critically important to the growth of the domain aftermarket; customers expect that what they are buying online will be available right away.
Improved Trust by Partnering with Industry Heavyweights
This improved infrastructure has brought many of the world’s leading registrars on board with listing premium domains for sale alongside primary registrations. This both expands the audience for premium domains and lends added legitimacy to the domain aftermarket – which is newer and less known than older registrars.
New Domain Extensions Increase Awareness
Domains have been in the news a lot lately, especially with ICANN’s announcement of new TLDs and the varied responses to this announcement. Any news that keeps domains and their value “top of mind,” is good for the industry.
We expect that consumers will value past performance (.com domain extensions being the most trusted historically, for example) as a predictor of future success, ensuring that .com will still remain the gold standard.
Learn more about selling your domains on Afternic today.
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