Premium Domain Values Increase By 59%, Only 31% Actually Developed

An interesting posting on Daily Domainer. Daily Domainer has analysed Domain Name Journal’s top 100 reported sales in 2007 and 2006 and found the median price for sales has increased from $124,000 in 2006 to $197,500 in 2007. This is an increase of 59.27%, which, as they say, is a pretty good representation of this year’s bull market in premium domains.Daily Domainer reports owners of three letter domains saw the values of their domains increase by at least this percentage over the course of 2007, and the same applies to many top generic domains whose sales either remained private or simply did not meet the $100,000 threshold to be included in this year’s top 100 list.The Daily Domainer then gives their analysis of the year’s sales, saying fears of the market overheating are unfounded, to date at least. They say the real “concern may be that with domain values shooting up so rapidly, very few domain owners are devoting any of their resources to actually developing their domains.” Afterall, “simply no point in developing a domain you just bought if you can resell it a few months later at a significant profit. Broadly declining PPC (pay per click) revenues do not seem to affect this situation at all, at least for the time being.”For more of the Daily Domainer’s analysis, see www.dailydomainer.com/2007174-premium-domain-values-increase-by-59-but-only-31-actually-developed.html