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My average domain selling price is about $900, and I normally do about 15 sales a month. But since February, it's an average of about six sales a month. That's a considerable slowdown.
I am wondering if others have noticed the same thing.
My Theory on the Slowdown
Since it seems that only about a third of my names are sold to end users, the majority of buyers are other domain investors. In my opinion, domain names, in the eyes of domain investors, are "risk assets," just like stocks and crypto. And, I would venture to guess that most domain investors also buy and sell either growth stocks and/or crypto. I think it's our nature.
So when domain investors are losing money in other risk assets, I'd think they'd have a tendency (or a cash requirement) to slow their purchases of all risk assets, domain names included. This is why crypto prices generally have been following the direction of growth stocks. My theory is the same holds true for domain names.
Furthermore, the bear market in stocks and crypto, and the global uncertainty due to supply chain, China lockdowns and the war against Ukraine, it seems would have an effect on business formation, which would also slow domain name purchases by end users.
The bear market in growth stocks started at the end of last year, but has really accelerated this year, as has crypto prices. And this coincides with my slowing domain name sales.
That is my theory.
Now, I'm very curious to hear if others have noticed the same slowdown.
I am wondering if others have noticed the same thing.
My Theory on the Slowdown
Since it seems that only about a third of my names are sold to end users, the majority of buyers are other domain investors. In my opinion, domain names, in the eyes of domain investors, are "risk assets," just like stocks and crypto. And, I would venture to guess that most domain investors also buy and sell either growth stocks and/or crypto. I think it's our nature.
So when domain investors are losing money in other risk assets, I'd think they'd have a tendency (or a cash requirement) to slow their purchases of all risk assets, domain names included. This is why crypto prices generally have been following the direction of growth stocks. My theory is the same holds true for domain names.
Furthermore, the bear market in stocks and crypto, and the global uncertainty due to supply chain, China lockdowns and the war against Ukraine, it seems would have an effect on business formation, which would also slow domain name purchases by end users.
The bear market in growth stocks started at the end of last year, but has really accelerated this year, as has crypto prices. And this coincides with my slowing domain name sales.
That is my theory.
Now, I'm very curious to hear if others have noticed the same slowdown.