IPv4 Monetization: How To Determine the IPv4 Subnet Price on the Marketplace 

Do you want to monetize your unused Internet Protocol (IP) addresses and generate additional income by leasing them? But you do not know what IPv4 subnet price to set? Perhaps you are wondering if setting a higher price is more profitable than setting a lower one? Without a doubt, this is a decision that must be taken seriously if you want to make the most out of your dormant assets. 

But what exactly influences IPv4 prices? How should you value your own assets if you want to monetize them and make a profit? We tackle these questions in the article, so keep reading to learn more.

IP address market trends influence IP lease prices 

As the demand for IPv4 addresses grows, prices are changing too. Naturally, as more companies need IPs, their prices go up. Today, paying as much as $60 per IPv4 address is no longer uncommon. 

The demand for IPv4 can be clearly noted within the IP transfer market. According to the American Registry for Internet Numbers (ARIN), around 1000 IPv4 requests will be added to ARIN’s waiting list by the end of 2023. In comparison, ARIN fulfilled 69 IP requests in Q3 2022. This suggests internet registries might be unable to cover the increasing demand for IP addresses. 

The rising prices and the growing demand within the transfer market directly influence IP lease prices as well.  

As IPv4 prices increased from July to August, the average IP lease price on the IPXO Marketplace rose as well. For example, the average lease price for APNIC (Asia Pacific Network Information Center) IPs went up from $0.64 to $0.70 per IP. 

In September 2022, as the average sale price fell to $35 per IPv4 address, lease prices decreased. For example, the average for ARIN-allocated IPs decreased from $0.55 to $0.48 per IP.  

Overall, while IP lease prices remain relatively stable, minor fluctuations are to be expected. You can access a more in-depth view of the IP lease market fluctuations by visiting the IPXO Statistics hub.

High IP prices force companies to save money on IP resources 

Due to the inflation and economic uncertainty at the end of 2022, businesses – particularly internet service providers or hosting companies – may choose to decrease their expenses on IP assets. Nonetheless, IPv4 addresses are crucial for business operations, so companies might continue buying them at high prices.  

Of course, when the IPv4 subnet price goes down, companies may rush to buy IPs even if they do not necessarily need them at the time. Some companies, for example, may buy IPs as an investment with plans to resell them at a higher price. That said, owning lots of IPs is not always easy, as they can be difficult and expensive to manage. Unfortunately, whenever companies decide to resell their IPs exactly due to management issues or because they want to turn a profit, there are no guarantees that they will find the right buyer immediately. 

Fortunately, IP lease can offer a highly beneficial solution for all companies. First, those that do not have IPs or the money to buy them. Second, those that want to utilize their dormant assets more effectively. 

The IPv4 subnet price that benefits IP holders and IP lessees alike 

Setting the price for your dormant IP addresses can be a complicated process. Naturally, many assume that a higher price is more financially lucrative or that it can secure a bigger revenue. However, there are a few things to consider when setting the right IPv4 subnet price. 

For one, if you set a higher price – let’s say $1 or $2 per IP – there is a higher chance that your assets will not attract IP lessees looking for a good deal for a long-term lease. Even if you successfully lease your assets at a higher price but without a long-term lease agreement, the lessee could terminate the lease if they were to find a more cost-efficient option. 

According to our calculations, currently, the ideal IPv4 lease price is between $0.35-$0.42 per IP. This might seem low, but a lower price is more likely to attract long-term lessees. And, in turn, help generate stable recurring income that companies can reinvest in other business ventures.  

The correlation between average duration time and average subnet lease price is evident. The internal Marketplace data shows that /24 subnets from APNIC, ARIN and RIPE NCC are consistently leased longer when prices are lower.  

At an average lease price of $0.67 per IP, a /24 subnet from APNIC is leased for 110 days on average, while the same resource priced at $1.12 is leased for 12 days on average. ARIN’s /24 is leased for 94 days on average at $0.48 per IP, but the timeframe drops to 5 days on average at $0.63 per IP. RIPE NCC’s /24 is leased for 45 days on average at $0.50 per IP, but just one day at $0.69 per IP. 

Please note that while the data gathered by our data analysts and shared via the IPXO Statistics hub presents a great overview of the IPv4 price trends, we do not provide financial advice, and you assume all risk by relying on IPXO Statistics data to set subnet prices. 

IP address monetization benefits at the IPXO Marketplace 

Are you not yet monetizing your dormant IP addresses? The benefits that IP monetization can unlock for any company are significant: 

• Recurring revenue 
• IP address management 
• IP asset monitoring 
• Abuse prevention  

If you have unused IPs, why not employ them to generate additional earnings for your business operations? If you choose to lease your assets for a longer period, you can secure stable recurring income that you can reinvest into your company.

To assess how much you can earn on average, explore our free lease vs. sell calculator. 

Another great benefit of IP monetization at IPXO is that you do not need to make additional investments to manage IP assets. The IPXO platform is fully automated and integrates features that can help monetize IPs without much additional effort. As IPXO takes care of your internet numbers, you do not need to spend money on hiring or training professionals to keep your assets under control.  

By entrusting IPXO with your IPv4 assets, you also remove the burden of IP reputation management. Our professional Abuse Prevention team employs innovative abuse prevention mechanisms and ensures 24/7 IP monitoring. This is how we ensure that your assets are leased by reliable IP lessees for legitimate purposes and minimize the risk of IP blocklisting. 

Monetize your IPv4 addresses and unlock your business potential 

IPv4 address depletion and the current economic turmoil force businesses worldwide to cut their budgets and reduce expenses. Fortunately, with IP leasing, companies can both save money and scale their networks simultaneously. For less than a dollar per IPv4 address, companies in need of IP assets can acquire the resources they need quickly and effortlessly. 

On the flip side, IP holders with unused resources have the power to influence IP lease prices. And also make valuable assets accessible at competitive prices. Simultaneously, they can secure recurring revenue that ensures earnings that can be reinvested elsewhere.  

Overall, IP address lease brings significant benefits for both IP holders and IP lessees. And it contributes to the more sustainable use of valuable internet numbers. The opportunity to sign long-term lease contacts at IPXO further builds trust between IP holders and lessees and develops trustworthy partnerships. 

Are you looking for long-term IP monetization opportunities? Look no further: Join IPXO Marketplace for free and start monetizing your assets today. If you have questions, book a free demo to see how IP address monetization works in action!