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Domaining for Amateurs: The True Story of Selling a Domain Name

Does it matter where I list my name?

Posted on August 4, 2007 3:21 PM |Permalink |TrackBacks (0)

Does it really matter where I list table.com, or am I wasting my time researching the different possibilities? 

If the marketplace were efficient, the "law of one price" should hold.  If the domain aftermarket functioned well, the same domain ought to sell for about the same price at every exchange.  If it didn't, the differences would quickly be arbitraged away by individuals buying those "underpriced" domains, and then reselling them at a more propitious venue or time.

Alex Tajirian's paper Price Inefficiencies in Domain Name Markets: An Empirical Investigation makes a strong argument that the domain market -- despite the growing popularity of the auctions -- is not efficient. 

That part wasn't really a surprise to me.  But what was surprising was this: One of the markets where the report didn't identify significant price differences across exchanges was actually in the highest-priced cluster.  I would have expected the premium domains market (domains which might sell for $50,000 or $100,000 or more), would have been even less liquid, because there are even fewer reasonable players.  Perhaps when the price gets high enough, it causes the market participants to behave differently in some way? 

In short, it probably does matter a good deal where you try to sell your domain, but your mileage may vary.

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About This Post

This page contains a single entry by Chris Crone posted on August 4, 2007 3:21 PM.

Domain Brokers was the previous post in this blog.

The "Do Nothings" is the next post in this blog.

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