debate Are domainers unknowingly destroying domaining!?

[artstar]

Domaining from my research within the last 10 years has revealed that the influx of new domainers has seemingly destroyed domain values.

I say this because it seems they are selling domains at far lower prices than they should which leads to destroying values on other domains when this practice is done.

For example look at namebio 3d domain sales

The sales prices IMO are far below what they might have been even 2 years ago

I think too many newbie flippa domainers are flipping domains in quantity to get a fast buck but they were unwittingly destroying domain valued across the board by performing such sales practices!

Is it just me or do you see the same trend?

:P

 

[artstar]

Wows lots of great responses!

I think my idea of domain valuation has been skewed as I must be reverting back a few years in my perception if valuation.
Its just that I see some domains being sold for quite a bit less than what they may have sold for in prior years.

That's when their was less flippers possibly and less TLDs so more dot com domains were demanding higher prices .

I fully understand its capitalism as I have no issues with making $$ of course but it was the perception I had that due to the quick flips that may have dragged down the overall prices of domains.

Not sure if I can making my point but I not against making doe I'm concerned that it is affecting valuation in both short and long term but ad many have said they dont care as long has they make a decent roi they are happy with that and its the buyer who decides what the market will bear.

To sum up if you ask for more u get more and if the majority of domainers don't sell lout cheap we all benefit rather than selling them for much less as seems to be the case today imo

 

[DomainVP]

To put it simply, because a lot of great points have already been said, 'low' and 'high' is arbitrary because in the end a domains price point ends with different decision from each individual seller.

There are people in the forum that announce from high heaven when they get a quick flip $600 sale, and there are others that will strategically slow play a domain for years to get a six figure deal.

Was the $600 sale 'low', possibly, but not for the seller.

It's the same with 'good' and 'bad' domains, there is no such thing...
Unless you own a double hyphen in a gTLD, then my friend what are you doing?

If you can catch a domain on the drop with zero competition, that means you saw something else no one else did. To go on and sell that name for $5k+ means that someone else saw value in that name as well, and you made a great pick.

But consider... what if you never placed that backorder, and that domain would have dropped to hand reg? Does that mean the same domain name is less in value? No, of course not.

Is a random pinyin 4L worth more than a 4L containing AEIOUV? Not to a future business owner that will start his company using the BAOW name (hypothetical). Again... it's all relative.

The average selling price of a domain property does not effect what my prices are, it certainly effects sales, but I will ask what I ask regardless of what 'other similar domains' have sold for.

Keep in mind; similar is not equal. You may have the best domain name in the niche, but you sold it at an average moving price based on 'recent sales'. - as the seller of Alphabet.xyz learned the hard way.

Either someone buys it, or they don't, but be firm with a price that makes you happy.

 

[Asfas1000]

There are people who work for $3/hour and others who Value their time as 300/hour. Depends...

 

[biggie]

are earthlings unknowingly destroying the earth?

yes, we are


imo...

 

[artstar]

Well one things for sure I got your attention even as flawed as it seems!




Unkowingly Destroying the earth??? Say what ? Time for another doobie me thinks!

 

[Omar Negron]

Everyone has their own price point that they are happy to sell their domain for. Just because someone feels the price was "low" doesn't make a difference. It's a subjective statement.

If someone buys a name for $2.17. And later sells it for $500. It may seem low to some for instance but the seller made an incredible ROI. Sellers will sale whenever someone is willing to pay a fair amount to keep cashflow going, which makes sense.

-Omar

 

[Canadian]

Well for sure but its affecting your domain values! Do u even care?

Off-course I care... but what am I gonna do about it ? if domainers are willing to take less for their domains... that's their decision.

 

[artstar]

Well that's the crux of the problem isn't it? What does one do so u are not getting shafted even more?

It seems domains has been hijacked once again by the flippers who will destroy your portfolio value for their quick buck and what will happen then?

Within time the majority of domains will be worth squat doesn't matter what TLD it will be in
So the flippers will benefit while the rest of domainers who hang on to their precious gems supposed that is, goes the way of mobi.

Am I wrong?? Am I just jaded? O.o

 

[artstar]

Off-course I care... but what am I gonna do about it ? if domainers are willing to take less for their domains... that's their decision.

But that is the issue. They take less for their domains drives your domains values down,simple but as u say what does one do to battle the flippers destroying domain values?

Some people rather make a quick dime instead of a slooooow quarter...

Well that's the crux of the problem isn't it? What does one do so u are not getting shafted even more?

It seems domains has been hijacked once again by the flippers who will destroy your portfolio value for their quick buck and what will happen then?

Within time the majority of domains will be worth squat doesn't matter what TLD it will be in
So the flippers will benefit while the rest of domainers who hang on to their precious gems supposed that is, goes the way of mobi.

Am I wrong?? Am I just jaded? O.o

 

[artstar]

3D also had a domainer fad component to it, which has gone down. So you need another barometer

Fad? Really so when does a niche stop being a fad?

2015 3d sales doesnt look like a fad man!

 

[artstar]

3D also had a domainer fad component to it, which has gone down. So you need another barometer

So what u r alluding to is that my perception of domain values being affected by flippers is bogus?

 

[artstar]

Facts are facts! Is 3d a fad that's faded?

3d is an example I couldn't list all domains man!

You seem content that domains values are being destroyed by flippers !

 

[ckj11]

People are just buying a combination of letters, numbers and whatever else is accepted. If I could buy a domain for £10 and sell quick for £50-100 then thats 400-900% profit. That to me is easy money, much easier than sitting with crossed fingers hoping for big bucks for years upon years.

 

[ResoluteDomains]

..................Rick Schwarz says that every second you are minding somebody else's business, you are ignoring yours. I agree with this.

This is so true!

 

[nvdomains]

Long term is a different strategy that works for some while not for (most) others. Just like in stock market, there are daily traders and there are long term investors.

Best reply. Nothing to add.

Day traders can not change the worth of a good long term stock. Flippers can not change the worth of a good domain if you have patience.

 

[nvdomains]

Rick Schwarz says that every second you are minding somebody else's business, you are ignoring yours. I agree with this.

Domain King...one and only..

 

[Branded Domains]

nice post...its up to the domainer whether he sell the domain for $1 or for $1m.....

 

[Templr]

Why should all domainers sit on their investments for 6-10 years. Some domainers need to make rent, some just like to keep flipping, it's business. Many sale prices are within the tiered system of the domain industry anyhow, so it's keeping the business flowing.

 

[Templr]

Unless you have 'true' premium domain names, but in making a living, I don't expect to hold for ultra high prices when dealing with clients. I'm fine to provide names at very competitive prices.

 

[Rick Ace]

Its just that I see some domains being sold for quite a bit less than what they may have sold for in prior years.

That's when their was less flippers possibly and less TLDs so more dot com domains were demanding higher prices .

I think part of the reason why you see domains being sold for lower prices is because trends change. But you're right about the influx of TLDs causing a drop in value for certain types of .com domains.

Nevertheless, I think the increase in domain flippers has also led to an increase of end-users that are interested in finding good names. In the past, some people would just purchase any available domain for their site. Now, with so many domain sellers around, the domain resale market is much more visible. And I think that's a good thing.

However, I suppose if there were less flippers, then new TLDs might just not take-off at all, as the industry might remain "traditional".

 

[artstar]

So its a situation wherein the more exposure of domains to buyers by said flippers the more demand for our domains but due to such the values drop because the more domains made available to end buyers equals lower sales price because of the greater exposure.?

So now at this point in time to make $ in domaining you either have to own premium domains you can afford to sit on and bide your time knowing one day hopefully you holding out will pay off much bigger or else's you become a flipper day trading domains like penny stocks?!

Well I guess then if I don't become a flipper I'm out of the domain business because I have zero premium domains to sit on and hold.

Its a new paradigm in domaining now and I'm trying to figure out how to proceed if at all anymore in this industry.

Or am I just confused?

 

[Rick Ace]

So its a situation wherein the more exposure of domains to buyers by said flippers the more demand for our domains but due to such the values drop because the more domains made available to end buyers equals lower sales price because of the greater exposure.?

Instead of going into a loop, I think it's best to use specific examples. There was a topic about drone-related domains earlier. Recently, many people (with different experience levels) got into the game. We began to see many good domains being sold lower than its value. Some even feel that the entire drone domain market is being watered down. However, that notion is countered by people who are successful at selling even hand regged drone domains.

Although, domaining has changed a lot, I think it's changing trends that is the bigger factor. People selling domains at low prices doesn't have a long-term effect.

 

[artstar]

Ah OK so become a trendytrend flipper with eye on quick roi and to heck with the future of domain values, so carpe diem domaining is the answer!

I'm in! Time to sell fast and cheap the new domaining business model sounds like a great plan!!

The George Castanza method, do thee exact opposite of what I normally would do, I'm up for any changes cause what I'm doing now suks! Lol

 

[artstar]

First of just because I joined NP in 14 doesn't mean I haven't been involved in domains which started in ,05 BTW so you have already made an ad hominem attack based on data you are assuming.

Also I find that even .com are selling for a lot less in comparison to what they once we're so of course new TLDs have affected domains valuations to drop across the board and that is of course not due to domainers involvement
but the registrars who profit from sell the new extensions

Don't forget panda as well!
Your reasoning is sensible but is nebulous and obviously obvious.

Nice rant tho!

 

[DomainGist]

an ad hominem attack

Slightly hyperbolic use of language there my friend, no attack occurred.

Neither do I consider my response a "rant", if indeed it is even possible to rant in writing - aren't they usually verbalised?

It was intended to be a mere contribution to a debate that you started with a question. I'll have to assume now that your question was entirely rhetorical, if the only acceptable answer is one that you wholly agree with.