June 7, 2001, 12:00 AM

Dot-com domain names still command top prices in secondary market

But demand is on the rise for dot-cc, dot-tv and dot-net, says broker GreatDomains.com.

Dot-com is still the most-in-demand domain extension in the URL market, but demand is beginning to heat up for extensions dot-cc, dot-TV and dot-net, says Steve Newman, director, secondary market at VeriSign’s GreatDomains.com, a broker of URLs. While demand may be starting to rise, price isn’t; Newman tells Internet Retailer that dot-cc, dot-tv and dot-net extensions sell at only about 10% of the equivalent dot-com in the secondary market, while extensions such as dot-org and various country code extensions sell for about 5%, if they sell at all.

About 90% of GreatDomain’s sales are dot-com extensions; they’re the most valued because most of the names with that extension are taken. Sellers have listed some 30 million URLs with GreatDomains; but fewer than 25% of them have actually been used yet on web sites. “That means a lot of names out there are on reserve, or that people have ideas for them but have not yet utilized them,” Newman says.

GreatDomains has developed a proprietary formula to give companies and individual owners of URLs an idea of the value in the current marketplace using what Newman says are the four key criteria. “We look at the number of characters – the shorter the better. Then we look at whether the name is related to commerce, the size of the industry involved, and whether it makes sense for the Internet,” he says. “For example, manufacturing.com is a great generic name, but it doesn`t lend itself to consumer activity on the Internet like a loans.coms does, where people can actually type that in and start to conduct business online.” GreatDomains also factors into the evaluation whether the extension is a dot-com, as that still commands the highest price, and also looks at the comparable value of similar URLs.


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