AftermarketDomains

Highlights of Discussion

• Aftermarket domains are a niche market and not a mass market. Buyers are rare and need to be targeted with deep narrow spectrum marketing techniques.
  


• All representatives in the value chain need to realize that there is a diverse set of requirements that may be fundamentally needed by various parties in the process. An open market system does not require that all parties agree on every potential transaction. It does require that every party has a choice to select which types of transactions they participate in. A technology platform needs to be established to enable selective participation.
  


• Centralized distribution of domain names for sale in the aftermarket is the most efficient way to establish continuity, maximize distribution, and avoid legal disputes.
  


• Marketing is drastically under-funded. The commission structures in place are not high enough to push the current market beyond reactive sales to proactive market development.
  


• The lion's share of the marketing commission needs to be attributed to the lead generator. Lead generators are the major contributor of growth to the value chain.
  


• Revenue distribution needs to be managed so that proactive marketing is strongly encouraged whereas reactive services should be paid a commission in accordance with the lesser value that they represent.
  


• Affiliate marketing for aftermarket domains is almost non-existent. The amount of commission revenue that has been available to encourage affiliate participation is sub-standard to the common CPA environment. The risks and efforts comparative to the rewards are untenable.
  


• Support services need to be recognized and valued. The most important purpose of support services (stock control, distributors, and clearance houses) are in maintaining stability and creating new avenues for penetrating distribution.
  


• Growth companies are not great threshold technology providers. These companies need to focus on growth, whereas threshold technology companies need to concentrate on efficiency.
  


• Most people do not need a domain name. Only a select few of those who do need one can afford one of broad appeal and substantial cost. Domain owners tend to mirror their belief in domains on to consumers. Unlike domain portfolio owners, only buyers who have been qualified and are primed to buy are real consumers. Most domain sales are not window shopping - the buyers have an established purpose for the domain when they buy.
  


• Many domain owners do not understand the nature of aftermarket domain sales and draw too close a comparison to the real estate market. The vast majority of domains are priced for sale at less than $5,000. Selling domains is more like selling high value electronics in a retail environment than selling real estate.
  


• Commission rates on domains need to be established on an individual domain basis. Domain level commissions offer domain owners a means to clear less valuable stock and give the lead generators an incentive to sell selective domains more aggressively.
  


• Establishing ownership of domains prior to sale is a fundamental requirement of the process.
  


• When a domain name is sold the owner needs immediate access and ownership. Instant transfer of domain ownership and control is paramount to aftermarket growth. Anything that stands in the way of instant and efficient transfer needs to be marginalized or eliminated.