Are we seeing a market top in domain prices???

[quality]

Seems to me very silly prices have been paid by supposedly some of the of the best domainers for pretty average domains eg megayachts.com $150,000 flowers.mobi $200,000. This suggests to me that we are probably at the market top for most domains. Add any silly prices you have recently seen.

 

[Devil_Dog]

dotcombubble.com

 

[Dotmainer]

Seems to me very silly prices have been paid by supposedly some of the of the best domainers for pretty average domains eg megayachts.com $150,000 flowers.mobi $200,000. This suggests to me that we are probably at the market top for domains most domains. Add any silly prices you have recently seen.

Silly ?
Avarage ? Whats there average ? How much does one (1) MegaYacht costs ?
1 Million 2, 5, 10 Millions ? 50 Millions .... compared to 150.000 $ its really bargain / nothing.

And flowers.mobi .... thats perfect keyword for that extensions,
order everywhere flowers, on the way, for your city ....
united under for expl. Fleurop ... seems very cheap

 

[Ken_]

silly how could you say silly prices
there's a lack of good generic names
And as peoples focus and lively hoods depend more and more on the net and their names & the market will only get stronger.
everyones got a house but theirs always someone wanting a better nicer piece of realestate.
If you brokered or sold yahts ie mega yahts a 150k price tag is a dropin the bucket.
the founder of traffic bought flowers .mobi hardly an unwise decision.
as people are becoming more aware of the value of their domains
the drop market for good generics is tightning.
As advertising budgets are starting to sway more then ever towards the internet, Maybe youl understand why good names whether its generic or brandable are so important in todays global economy.

 

[nstalk]

I've noticed the domain market and stock market seen to run hand in hand....and the stock market just topped out a few days ago and is still declining....look out below!

 

[Ronald Regging]

If anyone thinks prices are too high and wants to sell me a few premium names for next to nothing... be my guest.

The problem is that you are looking at domains in relation to the stock market... There was no .com bubble in '99... It's the biggest misconception out there. There was however, a poorly structured, overly-invested, online business bubble in '99... Domains may have suffered a little bit afterwards, but this was merely out of fear, not merit. (or lack there of).

Domains today are very undervalued. I've said this a hundred times, but with the prices of advertising going up, and PPC payouts dropping.. People need to switch valuation methods on domains to be based on savings in advertising as opposed to parking revenue.

Look at it this way. Most people and companies don't even truly realize the value of domains yet. It's still a very niche industry. So saying that we've reached a bubble is very premature. The domain industry has been rising slowly and steadily for a long long time. There hasn't been any sort of mass hysteria of investing that would bring us even close to a bubble. The investing that has been done, has primarily been done by a small group of individuals and companies who realize the value.

If you don't realize the value, or if you think we're facing a bubble, your best bet is to sell now while the prices are "high" and walk away.

 

[Spade]

I've noticed the domain market and stock market seen to run hand in hand....and the stock market just topped out a few days ago and is still declining....look out below!

you "noticed" huh? What data are you using to base this on?

Im sorry, but if anything the domain market is just starting to come into its own. With xx,xxx sales being reported daily, and xxx,xxx sales reported just about weekly. If anything, it only goes to strengthen the market and help make other industries realize the power of online business.

If you consider how many people there are online, and how many more there will be in the next 5 years. You'll realize if anything, prices now are a bargain. Imagine being able to buy Southern California real estate before it explodes. If you dont see prices rising in the future, your not looking.

Justin

 

[nstalk]

It appears I stepped on a nerve here. Be assured my comment was a tongue in cheek remark and not intended to say that I expect the bottom to fall out of the domain market.

I was referring to the 2000-2002 period when the stock market crashed and the domain market slowed to a crawl. Now just recently when both the stock market and domain markets are hitting their highest point ever in business volume and sales, the stock market has taken a big dive just this past week.

Its way too early to tell what the stocks may do but I fully expect them to be back up after a little correction. The housing market and credit tightening is to blame as well as the high oil costs.

I'm a firm believer in the value of good quality domain names and I expect them to continue to rise in value as the internet explodes in coming years. However, I do believe there are way too many crappy names being registered and a lot of those will probably never be worth anything.

 

[Broker]

Flowers.mobi was a politcal hype buy imho, and megayachts.com is a great domain.

 

[Spade]

nstalk,

I believe the correlation you saw durring the Dot Com Bust in the stock market is difficult to compare to the domain market today. I believe there was a correllation, but not in the same manner.

When the stock market tanked and DotCom Companies were going under - there was no need for domain names because at the time the internet looked more like a dying fad for investors. It wasnt about domain names, it was about companies back then. I dont think the true value of traffic and marketing was understood until later.

Now that there is a recognized value in both web presence and traffic, I think domain investing has moved away from being effected by the stock market. With reasonably inexpensive web companies being launched daily, and many of them finding some success, I believe the domain industry is beyond being affected by the stock market.

I believe even with the big losses in the stock market, domains continue to rise in value, especially because they are returning dividends to their investors. Consider that, how many stocks are paying out now?

I did not mean to come off hostile, I simply wanted you to explain your POV.

Thanks,
Justin

 

[mhdoc]

However, I do believe there are way too many crappy names being registered and a lot of those will probably never be worth anything.

Amen to that. I am more into building sites than speculating with names, but I don't see how many of them would ever make sense. I have a few three character .coms and have not had any luck making something out of them. The best use I found was when I want to sell something in the newspaper classifieds and need a short domain to keep the cost down.

 

[Sam]

Seems to me very silly prices have been paid by supposedly some of the of the best domainers for pretty average domains eg megayachts.com $150,000 flowers.mobi $200,000. This suggests to me that we are probably at the market top for most domains. Add any silly prices you have recently seen.

Another Post and Run thread from the "seller" of poker.web.com :yell: .

 

[Gregr]

$150K for megayachts.com and $200K for flowers.mobi is nuts. megayachts.com hasn't closed yet.

 

[moped]

We are at the end of a liquidity bubble that started in the early 1970's when Nixon dropped the gold standard which allowed the fed to print money that wasn't/isn't backed by gold. Since then reserve banks globally have practiced fractional reserve banking which means only a fraction of the currency in circulation is backed by gold. The high prices in the domain market are reflected in the art market which is also very speculative, both have been fuelled by excess liquidity which at some point will result in a major correction. Having said that I believe premium domains will retain their value relative to all other investments including gold until such time as a new method of navigating the web is adopted and even then quality domains will retain their value like a fine antique or vintage car.

 

[cache]

1. without considering the internet growth factor, if just stock goes low instead of
companies going out of business, then they will be more money available, thus
domain may not go lower.

2. However I do agree domain should not be a straight way up, it should have
up and down cycle.

 

[Ronald Regging]

2. However I do agree domain should not be a straight way up, it should have
up and down cycle.

This is my point exactly. Domains haven't even matured enough as an industry to get to a point where cycles can form yet.

I picture the growth of the domain industry very much like a stream system, illustrated below:

Awesome Diagram that illustrates my point

As you can see, the water only flows in one direction until it reaches the ocean, at which point it then falls into regular cycles. There may be some cyclical properties in the bay as well, but this is merely a staging point. According to my awesome diagram, we're about half way down the river. We'll keep flowing nicely until we hit the bay, at which point we'll start to see a steady influx of new investors and the industry will be at a "staging point" to prepare itself for induction into the mainstream ocean of business. Once in the ocean, the tides will rise and fall with the rest of the world.

The End.

 

[seeker]

truly excellent points made by Ronald regging and domainspade.
The diagram above really shows (metaphoricaly) what is happening in our market and gets the point accross very well.

 

[DnPresident]

I full heartedly believe that we are in the caveman days here and the prices of domain names are a small percent to what future prices are going to bring.

Many people have no clue to what a domain name is, but with famous publishers beginning to write about the increased climbing value and success stories of the domain business along with huge sells and growing events (auctions) in the front yard of the corporate world, they're coming.

When good people like R.H. Donnelley make large purchases in any sector of business for invest it seems to set trends.

The internet is still very young and prices are very very low for domain names compared to the years to come.

 

[DomainMayhem.com]

Any thoughts on domain names no longer being needed in the future?

 

[Broker]

Any thoughts on domain names no longer being needed in the future?

Yes, its called the http://www.worldbeam.com/ "Coming Soon"


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