Earlier this week we came across a great piece of analysis by Ron Jackson over at DNJournal. Ron took a deep dive into reported domain sales for 2011 and made interesting comparisons with 2010.
It led us to wonder about how Flippa website sales performed for the same period.
To make it comparable, we followed DNJournal’s lead and categorized websites into .coms, ccTLDs (eg .uk, .ca, .au), and non-.com gTLDs (eg .net, .org), and also excluded .com sales below $2,000 and other TLD sales below $1,000.
While this led to website transaction volumes clocking in at around 10% of the same volume in the domains data set, it uncovered some fascinating results.
Website dollar sales grew by over 50% while domains declined by 5%
The DNJournal records showed a 2% increase in total dollar volume in .com domain sales to reach $67.2 million for 2011 – unless we include the $13 million sale of Sex.com in 2010, which would mean domain sales volume dropped by 15%. Our records from the Flippa marketplace showed a staggering 57% increase in website sales volume to reach $15.5 million in .com websites sold for over $2,000.
While non-.com TLD domains suffered a decrease of 11% to sell just $10.2 million in 2011, their website equivalents increased by 63% to reach almost $3 million in sales volume. Websites with ccTLDs were again arguably too low in volume to provide much insight but did increased in total dollar volume by over 150%.
All of this goes some way to explain why Flippa’s total dollar transaction volume just shot past $70 million.
Websites held their value more than domains from 2010 to 2011
Median Sale prices declined marginally across the board. However, for .com domains, median prices declined by 14% to $3,000 while .com website median prices went down by just 3% to $4,350. For non-.com TLDs, stand-alone domains declined by 10% to $1,800 while their websites peers were selling only 5% lower at $2,000.
Websites with cc TLDs broke trend and were selling for a median price of $1,750 (down 8% on previous year) compared to just domains that clocked in at $2,000 (down 3% on previous year) – possibly due to the very low transaction volume for this category of websites.
Note that both the DNJournal figures as well as our own are but a subset of total transactions in the respective domain and website marketplaces – but ultimately enough to give you an idea on overall market trends.
Any views on what drove these shifts from 2010 to 2011? What does it mean for 2012? Let us know in the comments below.