Boston Consulting Group (BCG.com) put together a very detailed look at the secondary market for domain name sales.
The authors wanted to better understand a market that in their opinion is not well understood. They had questions about who participates and why? How big is the actual market? The article highlights the decline in the Chinese secondary market from 2017 to 2020.
Their findings will prove interesting to many investors in my opinion.
Here was one finding from the study:
The net result is that, on a dollar basis, the secondary market, at $2.1B/year, is almost as big as the primary market, at $2.3B/year, and nearly double the size of the registry’s wholesale revenue of $1.1B/year. In other words, nearly half of the dollars end-users spent buying new domains go to domainers.
They break domainers down into 4 segments:
Corporate domainers. These number in the dozens of domainers. Each of them owns more than 10,000 domains and together they hold ~26% of secondary market inventory.
High-volume domainers. This segment has a few thousand domainers. They each own 101 to 10,000 domains—and together hold ~18% of secondary market inventory.
Low-volume domainers. Each domainer in this segment owns no more than 100 domains. They are too numerous to count reliably, and together hold ~13% of secondary market inventory.
Private domainers. The final segment is one that is opaque, i.e., a segment where ownership patterns and numbers are difficult to estimate—these domainers hold ~43% of secondary market inventory.
There is also a slideshow that is worth reading, you can find it here.