Credit Crunch - Effects on Domaining.

[Robbie]

I know we have seen some great sales recently on various platforms but I want to know what other are feeling about the credit crunch.

I am brokering some real top end domains just now speaking with many well known portfolio holders and they are really struggling to raise finance on some excellent deals. Im not talking about a deals at $$,$$$ more into the $$$,$$$ & $,$$$,$$$

Anyone else been seeing this?

Should we look at large Fortune 500 companies and hope they have some cash stashed away for domain purchases?

What should we do?

Does anyone know how DomainCapital are doing?

Love to hear thoughts.

Regards,

Robbie

 

[maxeaus]

Mate, noone will lend money particularly $US ATM. It must seem bizarre to a lender that someone would want them to lend money on a highly speculative investment such as a domain at XXX,XXX or above.

If you cannot borrow money to buy shares at a 60% discount to what there worth, is this any surprise? There is 0 risk tolerance in anything at present. Cash is king, and if you cannot find a cash buyer you have 0% chance of a sale im afraid.

This is reality and it's here for the short term at least if not the medium term. Im certain many full time domainers are now looking for work outside the industry, and with unemployment spikeing it will not be easy.

When all this is over there will be people who have lost a lot of money and a few who make a lot.

 

[daj]

It's time domainers learn to develop their names for profit.

That's what you do! =)

 

[BigSotong.com]

it is hurting parking money too...less advertisers willing to pay more for PPC.

 

[Domagon]

Sellers are slashing prices substantially...

I, for one, have ... even to the extent of selling domains off at a loss. Some buyers I've sold to lately have gotten fantastic deals ... and I still have some more domains to sell-through.

In the past few months I've reduced my domain name portfolio by 2/3rds from over 1300 domains down to 425, and am still cutting, with a final target of under 300.

Domaining is still alive and has a future, but many are choosing to be more selective and put more focus on monetizing, in particular, long-term development.

Ron

 

[newvista]

It is fascinating to see the paralells between real estate/property and the domain industry. It seems that prices have fallen by at least 30% in both industries to date, probably another 20% to go before the bottom of the market is reached.

Interestingly enough, the price of high end blue chip property in London has only been marginally affected and I suspect that super premium domain names are also holding their value.