Market Evaluation

Size

GoldNames estimates that 500-1000 names with values over $500,000 each trade hands annually. This estimate is based on word of mouth, plus our analysis of the competitive name brokerage sites we have reviewed. In the last six months, GreatDomains executed $20 million worth of transactions.

GoldNames expects the market for secondary domain name sales to grow explosively. There are only two major threats to sustainability. First, a basic technological or regulatory change could take place that renders domain name trading unfeasible or irrelevant. GoldNames does not see this as a threat primarily because the current domain name system fulfills its function of routing emails and web page views extremely effectively. Alternative technologies currently envisionable do not offer significant improvements over the services that domain names currently perform. The secondary market for domain names is the most economically efficient method available of allocating a scarce resource (quality domain names) to those who most want them (who demonstrate their willingness by paying the market price).

Second, conceivably every single name everywhere could end up in the hands of the optimal owner, and then no more trading would take place. GoldNames does not see this as a threat because the nature of a liquid asset is that perception of value differs, and asset holders evolve in their needs. Just as the real estate industry will never reach a point where every square meter is in the hands of the optimal holder, and therefore trading stops, domain names will continue to trade.