discuss Are newbies increasing the competition?

[Arpit131]

Do you think that domaining is hyper-competitive? That a prospective buyer who was going to buy only one domain may end up buying a domain from one of the other players in the industry over you, and hence, as more and more people enter the industry, it is a loss to your business.

Especially if it is the case that you operate in a segment where they can easily enter, do you think that they would take up some of the names that you could have bought and flipped?

Is a new entrant into the industry increasing the bandwidth of the industry or increasing competition?

 

[manpreet]

I think competition is actually good and its within the eco-system. While each year many new people enter, many Quit too. I have seen equal numbers in the past years, people enter with enthusiasm, play around the first 1-2 years, they register and buy some crap names and after a year or two they quit saying its a number game, etc etc.

 

[barman]

What are you worried about exactly? When there's money being made, competition increases.

And to follow up, what can you possibly do about newbies entering the market? You have no control over that.

Focus on what you can control, that is, improving your own education, skills, network, and sales process. You'll be just fine.

 

[Rob Monster]

They are making the pie bigger.

They are also learning to shoot the moon:

https://www.namepros.com/threads/yall-wanna-shoot-the-moon.1162085/

That drives prices higher and reduces supply. So, the supply you have becomes worth more not less as more inventory ends in the hands of end-users who won't sell anytime soon.

More money in the domain economy lifts a lot of boots. The only people whose boat gets sunk are the folks who have to sell for chump change and then struggle to get back in the game.

The good news is that there are still tons of great deals to be had if you know where to look.

Godaddy's big acquisition and rising stock price just shows that the markets are starting to wake up to the possibility of domains becoming a respected international asset class.

It seems to me that it is all good.

 

[Domain_savvy]

Were you not a newbie at one point?
Did you increase the competition?
Answer is simple, no.

 

[Rhinnnn]

Are experienced doctors worried about new doctors? I doubt it. Do they seek to maybe close med schools out of fear of competition? No.

Are experienced lawyers worried about new lawyers? I doubt it. Would they close law schools if they could? No.

While there are no domaining schools per se (wouldn't that be interesting?), forums like this one can be considered something akin to schools. Should veteran domainers try to keep newbies out? No. Should they be worried about anything? No.

Competition is good. If any domainer is anxious vis-a-vis newbies, perhaps he/she should think about finding other sources of income.

Full disclosure: I am what seasoned domainers would call a newbie.

 

[Samer]

They make it easier, when they buy ngTLDs...

Dont waste your $... until u master .coms. IMO!

Good luck to all noobs! Make account today

Samer

 

[Samer]

Believe more, correlates more market liquidity

Supply and demand, the more, the merrier!

Levels end, all equal, helps our profession imo

Samer

 

[iAdam]

Everyone was born a newbie, we live and learn. I'm sure that there's newbies that they are doing better than older domainers. Smartness is what makes the difference.

 

[Samer]

view from lens “hyper competitive” business

is wrong!! This is a hyper-networking business

Help those who believe they found their calling

Samer

 

[karmaco]

The domain industry is super competitive and everyone is your direct competitor. That being said, not everyone has the same skill set or wallet so this competition aspect does not generally affect your ability to obtain good names and sell good names.

 

[hawkeye]

Really depends on which side of 'more newbies' entering domaining debate one is on.

A - Isn't/hasn't been good for those that buy expiring domains. (Some stupid prices now being bid up on names).

B - It's been great for the auction house like GD and DropCatch etc. (They're making a killing on those stupid prices!)

 

[Maximinus]

Hello, domainers!
As newbie I can tell you I don't feel like concurrence to experienced domainers.
I am very carefull what to buy and very much rely on handregistration.
I am not the guy who will overbid you for the 8000$ domain, just because I still have no notion of the pricing.
I can feel some name is worthy. but is it 100$ or 100k this only expirience can tell.
Greetings

 

[wwwweb]

Really depends on which side of 'more newbies' entering domaining debate one is on.

A - Isn't/hasn't been good for those that buy expiring domains. (Some stupid prices now being bid up on names).

B - It's been great for the auction house like GD and DropCatch etc. (They're making a killing on those stupid prices!)

This post pretty much said it all, a lot of people are stepping over each other without even considering their end user simply based on FOMO. Names will always circulate based on recessions, divorces, debts etc... The auction houses basically have investors paying more than what some end users are willing to pay.

Anyone can buy domain names, but truth be told the money is made on the buy, any downturn in the economy will have newbies losing money on their buys at today’s prices.

 

[JB Lions]

They are making the pie bigger.

The are also learning to shoot the moon:

https://www.namepros.com/threads/yall-wanna-shoot-the-moon.1162085/

That drives prices higher and reduces supply. So, the supply you have becomes worth more not less as more inventory ends in the hands of end-users who won't sell anytime soon.

More money in the domain economy lifts a lot of boots. The only people whose boat gets sunk are the folks who have to sell for chump change and then struggle to get back in the game.

The good news is that there are still tons of great deals to be had if you know where to look, like:

https://nameliquidate.com/
https://nameinvestors.com/
https://marketplace.epik.com/daily-diamonds

Others can add their sources too but definitely no reason to be discouraged

Godaddy's big acquisition and rising stock price just shows that the markets are starting to wake up to the possibility of domains becoming a respected international asset class.

It seems to me that it is all good.

Don't start again.

And making the pie bigger is still ridiculous. Having more people bid in auctions just drives up acquisition costs. Good for you if newbies spend money since you're a registrar and make money whether the regs are good or bad.

 

[Abdillahi Abdillahi]

What is newbie? Oh wait, everyone is newbie to something. I find it ok and dont mind anyone. I believe what is important is for the newbies to read and also try to avoid at all costs TM names, as well trying to represent the industry in a good way by acting professionally, and having professional website.

 

[Rob Monster]

Don't start again.

And making the pie bigger is still ridiculous. Having more people bid in auctions just drives up acquisition costs. Good for you if newbies spend money since you're a registrar and make money whether the regs are good or bad.

Yup, we'll have to agree to disagree there.

For emerging markets I am more focused on other scenarios that are low capital intensity:

- Buy $1.99 .CO on promo and sell retail.

- Expiry domains

- Arbitrage notably on lower end names

We are working on some technology innovations that will allow emerging market brokers to sell names from NameLiquidate by serving as Exclusive Brokers. All they have to do is fund the transfer fee so the expiring domain is not lost, and then they get a 7 day brokerage exclusive.

More details soon -- for all those folks who are getting zero from their expiry streams, it should be really good news and it is absolutely an example of making the pie bigger.

 

[Oblivious Fella]

I'd say new entrants are good as they are helpful in spreading out the awareness about domain names. From competition point of view, healthy competition is always good and when you do smart & hard work, you get your bread & butter. Most important point for me is that newcomers are widening the base of domain retailer market & that is a nice thing.

 

[Namesolve]

Everyone of us is different in this business. Some provide competitive pricing others satisfactory service.Threat of new entrants is one of the forces that shape the competitive structure of an industry. So I think barriers of entry is currently low.

 

[Shaan Chopra]

No, they are making the pie bigger, bringing in the fund, which is actually required or this industry will dry out. let me explain how this is happening and why is it good, as a single person one can not reg all the TLDs of all the domain name. The trend is people are shifting to other TLDs. This shift adds up to the opportunity lost cost. New entries like me are taking out those next best options which the end-user has. Is the competition increasing? No, because only one person can own example.com. Are the options increasing? Yes, they are and industry needs more people to make this domaining industry work.

I am a true believer of this quote by Peter Drucker "marketing & innovation are the only to functions of a business and rest all are cost" Now just sitting with a great domain will not work, one has to innovate and market it well to move ahead.

However, I also see this as a cycle, new guys are scared of the old guys because old guy has example.com and the new guy has crappy example1.com. Once the old person sells out example.com the new guys example1.com is a diamond. Old guy regs example2.com and the circle goes on.