Trading of domain names increases rapidly despite introduction of new TLDs

Trading of domain names increases rapidly despite introduction of new TLDs

Sedo - Our press release from 07/18/2000:

(Freiburg, Cologne - 18. July 2000) Despite the freeing up of more virtual space for domain names with the introduction of new top level extensions, such as the ccTLDs of the island nations like .tv (Tuvalu) and .cc (Cocos Islands), the trading of domain names in Germany goes on to increase rapidly. Three million .de domain names have already been registered, and it seems that there are no more good domain names one could apply for anymore.

It comes as no wonder then, that the secondary market for the buying and selling of already registered domain names is starting to heat up in Germany, following the phenomena in the US, which has been around for quite a few years. In the strongly fragmented market of many small domain brokers, two clear market leaders have emerged: Sedo.de, with 25,000 entries (plus another 1.15 million in its meta-searches) and Domain-agent.de, with 12,000 entries.

Because the practice of acquiring already registered domain names has not really caught on here yet, demand has always been greater than the supply. Nevertheless the two domain agents continue to make about 50-100 transactions monthly (Sedo.de) and 20-30 (Domain-agent.de), with a growth rate of more than 30% per month.

While most prices lie within the 100-1000 DM range, some domain names are selling for several thousand DM. Even rarer are the top class domain names, which for obvious reasons, are being offered for no less than 100,000 DM. These sites pull in thousands of unique visitors each month without having to run any advertising campaigns. Reminds one of that store on the "Kö" in Düsseldorf.

While the market is currently marked by an air of legal uncertainty, it is still generally understood by the average speculator that the domain market does not exist outside the jurisdiction of the courts (particularly with respects to domain grabbing). With good application of the law, domain names can be as normal and tradeable an economic property as any other. Among the more notable efforts in educating the general public in this area, is the excellent website Domain-recht.de, as well as the very lively discussion forum at Domain-people.de. One can certainly expect that with time, the trading of domain names is going to become even more frequent and common.

More information: [email protected] or by phone (+49) 0221-420 79 57 or Fax (+49) 0221-420 79 59