The reported sales numbers for BuyDomains.com are figures worth paying attention to for domain investors.
BuyDomains.com is a division of Endurance International Group BuyDomains.com is selling for themselves so the sales data is that of a singular company just like many domain investors. They own a lot of domains and mostly sell to small and mid sized companies.
They price accordingly to their customer base. You will see they did not have one reported sale over $10,000 in 2018 and 2019.
They are selling a lot of two and three word .com names, they will sell some .net and .org as well.
2019 was an up year vs 2018. $4.7 million in sales vs $3 million in 2018.
Total number of reported sales were up close to 50%.
2018
1,548 Total Sales
$3m Dollar Volume
$1,959 Average Price
$9,130 High Price
2019
2,227 Total Sales
$4.7m Dollar Volume
$2,093 Average Price
$7,544 High Price
Data courtesy of Namebio
Michael Sumner noted:
We’re just grabbing what streams across their homepage. I highly doubt that is all their sales, or even a majority. I think the up year was mainly a result of them putting more effort into keeping that stream of sales fresh, although they may have still had an up year. No way to know really.
They are pretty prolific buyers on wholesale venues like GoDaddy, NameJet, and SnapNames which is where a good chunk of their inventory comes from. I see them often in the Sales With History section of our Daily Market Report.
If I get a chance I’ll try to put together some data on their flips, hold period, acquisition source, etc. and post it here.
They are one of the few pure examples for us to emulate.
BuyDomains is also losing money. The company owns at least 965,000 domains. So, do the math and you see they need to sell at least $8 million worth of domains to break even.
Buy Domains has 1.5 million domains. At 8 bucks a pop thats 12 million in renewal fees. So at these numbers they would be losing 8 million dollars every year. These numbers don’t make any sense.
Impressive figures but what about their sell-through rate? How many domains do they own? What do they spend on renewals and new regs every year? Without these figures, it’s hard to say what the sales figure in isolation means.
$2000 seems about right for two/three-word com’s though and what I see personally as well feedback from other investors
Do they hand-reg or they get the domains from closeout?