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information Expert Exchange: What Single Factor Influences the Domain Industry More Than Any Other?

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As with any industry, external events and phenomena can have an effect on liquid prices, buyer confidence and the general outlook of the industry. Some factors play a larger role than others in influencing our decisions as investors. In this edition of Expert Exchange, we asked our assembled domain industry pros:

What Single Factor Influences the Domain Industry More Than Any Other?
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Nat Cohen (@Telepathy), Owner of Telepathy.com
That the human mind uses specific words to associate all one's thoughts, feelings, and desires about a business, and on the Internet, those words are in the form of domain names.
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Shane Cultra (@Domain Shane), Domain Investor & Publisher of DSAD.com
At this point, China. The buying power is a major force and influences the prices of so many different domain categories.
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Frank Schilling (@Frank.Schilling), CEO of Uniregistry
The broader economy. If technology does poorly, domain names have a bad year. I think these next few years should be good and even a bad year or two can still be papered over by natural growth and interest within the space.
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Giuseppe Graziano (@Giuseppe Graziano), CEO of GGRG Domain Brokerage
End-user demand. What has happened in the Chinese market over the past two years (domain names trading as commodities) cannot sustain a long-term value growth. In the end, the value of a specific class of domains is highly influenced by how many domains are actually developed. We try to capture that number in our quarterly report.
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Mike Mann (@Mike Mann), Owner of DomainMarket.com
Hype
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Joe Styler (@Joe Styler), Domain Investor & Aftermarket Product Manager at GoDaddy
I think it is a small industry so conducting yourself in a trustworthy and cordial manner is very important as relationships would be one of the biggest influences in your individual domain endeavors. On a macro level, the global economy plays a big role in what names are purchased and when.
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Tessa Holcomb, Co-Founder and CEO of Igloo Domain Brokerage
Although I feel that the economy, in general, has the greatest influence on the domain industry, I’d have to say that venture capital (VC) funding and related rapid-startup growth within innovative companies has the most influence on our area of the domain industry, as Igloo works primarily with end users including the rebranding of existing companies, the launch of new products, or startups forming their brand.
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Andrew Rosener (@MediaOptions), CEO of Media Options Domain Brokerage
I think a strong economy in the USA is the most important factor in domain name values and volume of sales.
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Morgan Linton (@domainflipper), Publisher of MorganLinton.com & Co-founder of Fashion Metric
The use of domain names by consumers. There was a while there where I was afraid that apps would overtake domain names. That hasn't happened yet, and with all the new gTLDs, it feels like domain names are actually becoming increasingly important, and consumers are more open to the idea of something not necessarily needing to end in .COM to be trusted.
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These responses have been edited for clarity.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
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Some wise words.
I think the main single factor is the 'temptation of speculation'.
 
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Great article @James Iles
In my opinion, I think it's the proliferation of all of the new gTLD's, giving business owners and startups greater choice in selecting a domain name to brand or complement their current brand, and it's effects on the resale market of both legacy TLD's and new gTLD's.
 
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Thanks for sharing
 
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Tkanks for sharing!
 
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One word: Google!

I can't believe nobody mentioned Google
 
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One word: Advertising
 
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For chip domains it's the Chinese currency controls forcing investors into domains as a way to transfer/invest money easily.

For western domains it all revolves around the economy being in good enough shape so companies are starting up, and investing in expanding their business.

For domainers the hype is always there...
 
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What Single Factor Influences the Domain Industry More Than Any Other?

Start-ups and business dreamers buy the most domains above a price point of $500 and single-handily inject the most cash into the domain industry. :greedy:
 
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"Nat Cohen (@Telepathy), Owner of Telepathy.com
That the human mind uses specific words to associate all one's thoughts, feelings, and desires about a business, and on the Internet, those words are in the form of domain names."
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Was Nat trying to define/explain what domain names mean here?
He completely missed the question about current and foreseeable influences.
 
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JoeE said:
Was Nat trying to define/explain what domain names mean here?
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An explanation of what makes a domain valuable is an influence on the domain industry. If domains weren't valuable, or had a chance of becoming obsolete, then there would be no future for the domain industry. That's a powerful influence. Nat's response was my favorite, second only to my own. :xf.grin:
 
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One factor that obviously influences the domain industry far more than other industries is domain renewal costs.

Verisign really wants to increases .COM renewal prices, but fortunately the fee has been frozen until 2024. But if this is not extended beyond 2024, they will surely increase it anytime they have the chance (like they are currently doing with .NET, and like they were doing with .COM before the US gov stepped in and made them freeze the renewal price at its current level).

Increase .COM renewals with $5, and HugeDomains would have to pay an additional $13,000,000 in annual renewal fees, Mike Mann would have to pay $1,350,000 more than he currently does to hold his portfolio, and BuyDomains would have to pay and additional $5,785,000. While it would have an impact on them, I don't know if such an increase in renewals would have a detrimental effect on the current business model of these companies. I doubt such an increase would have a significant impact on individual investors who own 500, 1000 or 2000 domains.
 
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Addison said:
An explanation of what makes a domain valuable is an influence on the domain industry. If domains weren't valuable, or had a chance of becoming obsolete, then there would be no future for the domain industry. That's a powerful influence. Nat's response was my favorite, second only to my own.
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I actually like what you wrote regarding influence where domainers (dreamers) spend the most on domains and also the influence of start-ups and the kinds of names they buy/use.
BUT..
What you tried to explain about Nat's answer does not help it one bit. As I said before he explained the benefits of domain names in general, which is the standard explanation given to domains from day one. Domains are easier to remember because no one wants to nor can remember IP addresses. He said nothing more than that. the Question was about influence. Some of the other answers clearly understood what the question was he did not. I still think he added nothing new to the discussion besides saying domains are valuable and useful... duh!
 
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JoeE said:
domains are valuable and useful... duh!
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That may be obvious today, but what he made clear is why it will be true for the foreseeable future. That's important.

To be fair, which I don't think you're being, the question does not specify the type of influence. It's open to interpretation. I could say that cybersquatters have the worst influence on the domain industry, and that would accurately answer the question. It's open-ended without any specification of the type of influence. It only specifies the degree of influence: most (more than any other), which can mean most good (best), most bad (worst), most sexy (sexiest), or, as he answered it, most important.

Carry on, but don't forget about that like you teased me with.
 
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Addison said:
Where's your like, then?
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Touché ... OK liked, happy now?

I don't want to dwell on what Nat said.
Maybe it's the best answer up there and I'm too dense to understand it.
 
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LMFAO ... hows Mike Mann's reply...

Mike Mann:

"HYPE"

That one word answer actually says ALOT!

It is exactly what he does when bragging bout all his sales and how he acquired x domain for $10 and sold it for $10 000... creating Hype... Guess, the proof is in the results...cos seems it's working for him... unless of course he gets paid to create hype around domain trading and how "easy" it is to make a fortune from a tiny investment. In order to encourage more people into domaining.... but then who would benefit from paying him? (maybe not paying directly but "buying" some of his domain) - The main benefactors would be registries, but surely they are all way to ethical to resort to guerrilla marketing tactics like that, right? :)
 
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Mike Mann got it spot on with just one word - hype

Someone only has to say 4L are the next big thing then you see everyone buying 4L

Then someone will say no money in 4L etc everyone sells etc

Don't be sheep

Ignore trends

Buy good quality business related in dot com renew in advance for 10 years and then forget about domains lol and lay on The beach h somewhere for a few years and let time add value to your domains
 
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