Just curious...

Given that unlikely scenario, I'd leave the domain business.

stub said:

Given that unlikely scenario, I'd leave the domain business.

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Thanks for replying, Stu

Does that mean you dont value any single domain of yours high enough to pay $100 a year for it?


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I voted for "Less than 100 but more 10", mainly because all mine are developed and I would definitely want to keep the ones that pay for their own renewals + profit at the end of each year. Dropping a couple of the lesser profitable ones would be acceptable.

Of course, my situation is probably a bit different since they are all developed and I'm not just hording names to park with the hopes of eventually selling them one day. I prefer my names to pay for them self till they sell (If I ever decide to sell them), which requires a little development.

To each their own though, we all have different strategies

Eric Lyon

Eric_Lyon said:

I voted for "Less than 100 but more 10", mainly because all mine are developed and I would definitely want to keep the ones that pay for their own renewals + profit at the end of each year. Dropping a couple of the lesser profitable ones would be acceptable.

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Thanks, Eric

but that's not fair - developed money-making domains were not supposed to participate, they are really different - i would even go as far as to say developed domains are not domains anymore..

i'll add a line to my initial post


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I'd imagine there would be a good opportunity for upgrading some names. There could be some interesting drops. That would play into how many of mine I would keep (or drop to make way for better names).

I would be more selective for sure, especially with names that I have 'development plans' for, similarily to how I have had plans to finish my basement for the past 7 years.

Paying a tenfold (or fiftyfold) increase in registration fees would bankrupt me. Yes I have domains where it would be justified to keep them. But the astronomical fees would still bankrupt me if I couldn't sell them. 100 domains at $100/year is $10,000, at $500/year is $50,000.

Sorry I didn't see the poll before. I voted to quit the business.

Being a developer more than a domainer, I would let most of my undeveloped names go and would be happy at the same time because in your scenario, that would mean lots of names that are great for dev would suddenly become available, so I would not have to keep an inventory of domain names for dev.

Traveler said:

that would mean lots of names that are great for dev would suddenly become available, so I would not have to keep an inventory of domain names for dev.

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Thanks Traveler,

got your point, makes a lot of sense from developers point of view to me


could any pure domain investors/traders/flippers/collectors share their thoughts please?

i suppose no need to ask about 3L coms but would you keep all your 3L nets/orgs for instance?

thanks

I would keep my 3L .coms but not the .orgs because they are much harder to sell.

4pm said:

Does that mean you dont value any single domain of yours high enough to pay $100 a year for it?

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Removing all worded discussions aside, what remains is basic cash accounting.

If a domain renewal costs $100 per year, you need to raise money to pay for it. Any businessman who pays a premium investment, will naturally raise the price tag for the merchandise. And raising the price tag will naturally make it more difficult (and longer, perhaps longer than 1 year) to sell the merchandise.

To come up with the money to pay the bills, you need to raise money somewhere. Or else, you will declare bankruptcy.

A businessman who files for bankruptcy, will eventually see his assets low-balled to garbage value.

.. 7 voters for now of which 6 would not drop everything and quit

can i ask if you would keep paying for anything other than com?
to be specific - would you keep any of your net/org/co/me/tv?
any chance for anything else like ws/cc/pw/pro/etc?
what kind of names are those if any?
a couple of real examples out of what you own would be great too..


* 2L net/org dont count, thats trivial

4pm said:

can i ask if you would keep paying for anything other than com?
to be specific - would you keep any of your net/org/co/me/tv?
any chance for anything else like ws/cc/pw/pro/etc?

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You would keep anything that you "believe" would be worth more than $1,000. And you would have to keep your speculation timeframe within say 3 years. Otherwise, it's a financial disaster. If you didn't sell for 3 years, you would have lost $300. You then have to recover that loss from your other domain sale by jacking the price by an additional $300.

As what stub had said, it may look possible in theory. But in reality, it doesn't make any financial sense.

alien51 said:

You would keep anything that you "believe" would be worth more than $1,000. And you would have to keep your speculation timeframe within say 3 years. Otherwise, it's a financial disaster.

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sure, the math is simple.. what i'm trying to figure out is how many of his/her names an average domainer would consider worth paying $100 for. and how many of them would be non-coms if any, what type of names would they be? ..from his real current portfolio, not in theory.
this is a question of how you value your domains, not domains in general or com vs whatever in general

i personally would keep around 15 coms and a couple of me/tv's from what i own

I can't sell any of my non-.com's now. They would be the very first to go.

I think I would keep half of the inventory (roughly), because the domains still have potential in spite of the suddenly increased fees. They can all be developed but you need the skills (no problem) and the time (life is too short).
In this scenario, domaining would become a money losing activity. But I would carry the loss for tax purposes, and the other activities of the company can sustain the portfolio.

i will drop worse ones and try to catch the cream of the pop, the game would just escalate to the top of the quality

"I'll keep most of mine and that's definitely more than 100 - I own tons of premium domains"

I'd drop some but would definitely keep over 100 for resale plus the 69 currently developed.

I would only keep a couple premiums i own and the one my business runs off of.

Im already dropping most of my $hit now, so dropping them for $100 renewal is a no-brainer.

Given that many right now pay for $100+ renewals for names in obscure extensions with dreams of actually selling them.............. I would say many with the typical lottery dream would still renew their daily hand-regges until their well runs dry.

thanks for the replies

what i was trying to research is how domainers value their own portflios (when not too busy with appraising other's )

i mean if cash is not a problem (you dont even need to pay for your renewals in advance in this fancy scenario) what part of your portfilo would you keep if the fees were that high

i personally would afford to keep around 100 at those rates but looking at the quality and trying to be realistic about selling potential/price i would only keep 15-20 out of 500 or so. thats how i judge my overall portfolio quality - it's pretty mean to say the least from my own point (i dont really care much about appraisals of any kind). only less than 5% of mine i'd care to pay $100 a year for.. yet, when i ask myself NOW how many i would keep from what i had a year ago - i say 2-3 max, not sure it's a good progress thou

as SpareDomains said he would keep most of his - so i assume he considers his portfolio consists mostly of high quality and premium names. Meaning he's much happier with his domains than i am with mine

NJ and lincolndsp basically said they would keep best/premiums and drop the rest - but how many of yours are those best/premiums vs so-so you would not keep.
Of course we would all keep what we consider our premiums - the question is how many (assuming you've got cash to keep all but you can do the math and are being rational) vs all you currently have ...and would there be non-coms (of not trivial type i.e. 2L.net etc)


sdsinc - thanks, that what i was most interested in - your "half of the inventory" tells me a lot.
any non-coms among them if i may ask?


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4pm said:

sdsinc - thanks, that what i was most interested in - your "half of the inventory" tells me a lot.

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At $100/year, even decent domains that could sell for mid- or high-$$$ become too risky
Remember that turnover is very low, I am happy if I move 5% of inventory every year. The rest has to be renewed, that hurts

4pm said:

any non-coms among them if i may ask?

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Yes, quite a few ccTLDs.

4pm said:

assuming you've got cash to keep all but you can do the math and are being rational) vs all you currently have

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if money is not an issue, then everyone would have kept their domains. The only reason why people drop their domains, is because it's bleeding money every year when it doesn't sell.

The answers you are getting from this poll, are very misleading. Anyone could say they would keep 10 domains for $1,000. But again, you are referring to "average domainer" like you said. This means, our premium domains are still speculative with no guarantee to sell in a year. Every year it doesn't sell, you have to recover the loss to break even. Even if money is not an issue, you still need to catch up with the yearly losses by adding them to your asking price until your domains get so expensive, nobody wants to buy them anymore.

And you end up bankrupt. Which means, whatever you said in this poll in the beginning (like i would keep 10 domains because they are premium, and so on), actually doesn't make any sense in reality.

You need to factor in the obvious.

The lowball end user offer now has to start at $100 and not $10.

That said I'm not interested in this business now - I just hang out here to be a pain.

lets define a rational market strategy first. there can be different ones but we take one that would probably apply to most domainers with mid-size average quality portfolio.

if i have say 100 domains i would probably keep renewing all that i consider sellable for at least mid $xxx in a reasonable (lets take 5 years) period of time with reasonable probability of 50%. meaning i expect to sell 50 names over 5 years for average $500 each. which yields 10 names per year that would result in $5,000 yearly sales. after paying 100 x $10 = $1,000 in renewals i pocket $4,000 in profit which is fine ROI
now factor in our $100 fee - that's 100 x $100 = $10,000 making the whole thing a money-losing business burning cash at $5,000 a year rate. to keep us alive and profitable (we are still rational right?) we need to sell every name for at least $1,000 on average. we know that not all our names would ever sell that high so we need to drop those that we would not expect to sell higher than $1,000 in the same reasonable time frame..

the math is simple and that is not what it's all about. interesting part (to me) is how many of your domains you'd keep based on the above as this would tell a lot about your own subjective self-appraisal ... thats what i meant. plus what tlds besides com is a technical question indeed

you can tweak numbers as you like - some have 10 vs 1 year investment horizon, some have 10,000 vs 10 domains etc. ..does not matter much, all assunptions are subjective and are only estimations like sale probability or reasonable price.

but if you were to decide what to keep and what to drop by tomorrow you'd have to come up with a real numbered list of names ..how many names would you have in your list (in percents of your total current holdings) ?







on a side note, that would be a long-awaited death of "mini-sites", automated wordpress blogs, "i have a site too" pages - all that spammy stuff littering the net... how cool that'd be mmmm - clear and bright adsense-less internet full of relevant fast clean sites serving no 100Kb buggy jquery plugins and myriads "Like it fast", "Subscribe to my farts", "Follow me deep inside", "Love me gently", "Take me in the fridge" buttons on every page top, bottom, left and right that are the only elements to utilize those scripts... just dreaming but nice side effect anyways

4pm said:

how many names would you have in your list (in percents of your total current holdings)

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top of my head, excluding all developed names? 10%