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7 Domain Investing Tips to Guard Against Economic Downturn

Labeled as advice in Domain Industry News started by Alvin Brown, Oct 11, 2019.

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  1. Alvin Brown

    Alvin Brown Member VIP

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    [​IMG]
    With every passing minute, the greater global economy is closely watched by all like finely tuned ears awaiting the music to stop in a game of music chairs.

    Like no one wants to be without a church when the music stops, certainly no one wants to be left holding the bag of economic uncertainty, especially if it’s a recession.

    While economists attempt to find agreement that declining per-capita GDP is the main indicator to monitor along with other critical factors — unemployment, oil demand, trade and industrial production, a somewhat underground world known as the domain industry keenly watches and makes preparation to guard against economic downturn.

    Not known by many and certainly the domain industry pales in comparison to most industries and markets, domain names are the mission critical to the existence of and operating the Internet. Just like land is the foundation for pricey buildings and developments to find their existence, domains are to the Internet.

    And while every detail about an economic downturn cannot be known, domain investors can prudently and proactively perform due diligence actions critical to guarding and protecting domain portfolios and livelihoods against economic downturn.

    Listed below are a few safeguard methods and strategies to sustain profitable domain investing before, during, and after economic downturn:
    • Stacking cash reserves
    • Multi-year renewing domain/domain-related services
    • Alternative payment methods and payment plans
    • Domain portfolio elimination and liquidation tactics
    • Developing and leasing percentage of domain portfolio
    • Focus on small-medium, and startup domain names
    • Engage startup incubators and chambers of commerce
    Listen to my latest podcast as I highlight and address each of the aforementioned bullet points as viable strategies to weather an economic downturn.

    In addition, how do you protect your domain portfolio against economic downturn?
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    Thank you for addressing an important topic, @Alvin Brown , one that many avoid because it is sobering.

    I think if, or when, there is a dramatic economic downturn while it will make things worse in many ways for domain investments, it will probably also result in some new opportunities too. For example, if companies fail and unemployment goes up, then more may turn to self-employment. While the demand for corporate domains may, temporarily, weaken, demand for those priced and suited for single person operations may improve. Your point about focussing on small-medium and startup names ties in exactly with that idea.

    Thanks again for your service to the domain community.

    Bob
     
  3. RheiHawk

    RheiHawk Established Member

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    Solid advice for a realistic situation. Thanks, Alvin!
     
  4. Alvin Brown

    Alvin Brown Member VIP

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    Thanks and glad you found the information to be insightful.
     
  5. Alvin Brown

    Alvin Brown Member VIP

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    Thanks Bob! I don't want to sound like chicken little, yet I want to be prudent and plan accordingly as well as this be my hope for others.
     
  6. jamesall

    jamesall Upgraded Member Gold Account VIP

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    In these times where companies start up and go under all the time and where the majority are having to deal with "The Gig Economy", what is left to fear?

    Millions are already in their own personal economic downturn. The Internet is a great place to find solutions for these problems, start a business etc, regardless of your age, sex, disabilities etc. The ever changing landscape of tech and tech rivalry ensures new opportunities on an extremely frequent basis as @Bob Hawkes rightly pointed out.

    Having stated that there are three schools of thought that never seem to change:
    1. There are no safe bets, guarantees, or get rich quick schemes without some risk involved.
    2. You have to speculate to accumulate, take a chance, knock on a few doors.
    3. People should never spend more than they can afford to lose.

    This really rings true in the domaining world no matter what the greater global economy looks like.

    Wise strategies for domain portfolios in any case @Alvin Brown.
     
    Last edited: Oct 11, 2019
  7. Brands.International

    Brands.International formerly lolwarrior Gold Account VIP

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    "In addition, how do you protect your domain portfolio against economic downturn?"

    I tend to renew most of my domain names (those which I plan to keep & having low renewals) as much into future as possible (particularly if there is good renewal promo available) .. and then I pray :)
     
  8. xxxSxxx

    xxxSxxx Upgraded Member Blue Account

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    Nice article Alvin. Thank you.
     
  9. Blessing Etim

    Blessing Etim Established Member

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  10. Tony J

    Tony J Established Member

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    Great post @Alvin Brown it is something to think about and start planning for.
    Thank You
     

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