Domainers only sell ~1-2% of domains on average a year simply because of the relatively fixed number of new businesses looking for domains each year versus the number of domains being held by domainers
First, you give absolutely zero evidence or provide any sources to back up this statement;
I have no idea what to say here .. I'm completely speechless. Do you really need me to give you links about the relative stability of global economic growth? It's inconceivable that anyone be so truly ignorant on the subject .. but even so .. just google "Global Economic Growth" .. there are literally 477 MILLION results.
https://ycharts.com/indicators/world_gdp_growth
Dec. 31, 2017 3.15%
Dec. 31, 2016 2.59%
Dec. 31, 2015 2.86%
Dec. 31, 2014 2.84%
Dec. 31, 2013 2.65%
Dec. 31, 2012 2.52%
Dec. 31, 2011 3.15%
Dec. 31, 2010 4.36%
Dec. 31, 2009 -1.74%
Dec. 31, 2008 1.80%
Dec. 31, 2007 4.18%
Dec. 31, 2006 4.28%
Dec. 31, 2005 3.82%
Dec. 31, 2004 4.37%
Dec. 31, 2003 2.90%
Dec. 31, 2002 2.20%
Dec. 31, 2001 1.92%
Dec. 31, 2000 4.39%
Dec. 31, 1999 3.26%
Dec. 31, 1998 2.54%
Dec. 31, 1997 3.70%
Dec. 31, 1996 3.39%
Dec. 31, 1995 3.04%
Dec. 31, 1994 3.01%
I can't be bothered to pull out number of new businesses per year, because quite frankly if you still don't understand that there is a direct correlation to economic growth then you will never understand anything related to math or economics.
Seriously .. growth in number of domains sold per year is more or less directly related to the growth of the economy! The other very important factor to consider is that there is also still a shift of old companies making the move to the digital world, so that has an amplifying effect on domain sales that will likely have a stable but diminishing effect for many more years to come.
In terms of major influences of domain sales that isn't also related to the economy, the only thing I can think of is Facebook .. as there was likely a dampening effect of domain growth in the early years of Facebook as many companies simply replied on FB for their online presence. The true effect of that is likely lost in the 2008+ financial crisis.
If for some reason Facebook or Amazon closed down, then that in turn could cause growth in domain sales as many retailers rush to get their own websites.
Obviously political influence can have an effect as well .. particularly in China where changes in government policy has led to noticeably changing trends in domain registration numbers.
At some point some ICANN decision could also certainly effect the number of domains being sold. But depending on the policy change, that would effect more new registrations and less directly aftermarket sales.
I'm honestly not sure what effect the ngTLD's had on domains, but there likely was a short term spike as at least some businesses tries to secure their defensive registrations. While new businesses that got ngTLD's likely would have otherwise bought an existing oldTLD .. so that might have had a short term dampening effect on the aftermarket as the best ngTLDs were bought (instead of lower-tier .com, other ccTLDs and .net). Now many domainers own ngTLD's .. so effectively ngTLD don't really have such a pronounced affect on the aftermarket because they are part of the aftermarket now.
Also .. the Chinese CHIP craze influenced the market as well .. but those are mostly liquid domains that most domainers do not trade in .. and actually represent a very tiny portion of the traditional end-user market .. so even if it was a big deal .. it's effect on the average "~2%" of average domainers was actually negligible.
When it comes to aftermarket domains (the famous ~2% +/- ?%), I think we can all agree that the demand is going to also be relatively related to overall domain growth.
Again .. there could be changes in the delta between overall new domain sales and aftermarket sales. Perhaps if .com ever saw a significant renewal price jump then more people would look at aftermarket domains.
A significant portion of unsold domains is simply due to poor quality domains as well as overpriced domains. Maybe not as bad as potential hand registrations, but remember that in order to have a profitable portfolio a domainer needs to have a significant markup on their domains. Yet at the end of the day, a new business start-up would have a much stronger likelihood of getting a bad hand reg at $15, than an only slightly better improvement at $1000.
Another factor which I already mentioned above is for more awareness to be brought to domains .. but by far the biggest players in the industry tend to focus their marketing dollars on new registrations. That being said .. GoDaddy ads about (hand-reg) domains most certainly would have a secondary effect of bringing more awareness to the industry in general. A certain number of people who go to GoDaddy and can't find any decent hand reg's will take the next step to the aftermarket.
I suggest you go back and read Josytal post followed by internet.domains post. Then think about what they said for a while Ategy.
Again you simply prove your complete ignorance and lack of understanding on what you're talking about.
Before even beginning, what both are talking about are micro level .. having to do with individual (single domainers/portfolios) as opposed to the macro level that we have been discussing (industry-wide factors).
Demand and supply. Just like in any other industry, supply by far outweighs demand.
@ThatNameGuy .. This has actually been MY point the entire time .. lol. Go back and you'll see I talked about this in depth. Maybe it's YOU who should be reflecting on it as you've been saying that somehow we can magically overcome the supply/demand factor of the entire domain industry ... we've all been waiting for you to actually tell us what you're going to do with your magic wand .. but instead all you do is reply with nonsense and gibberish .. and backtracking to change your initial arguments and stance.
And by the way, Pareto principle states clearly:
80% of the outcome of any activity comes from 20% of the total efforts.
So if you apply the principle to the best of domain portfolio, at any given time the maximum you can sell should be 20% of your portfolio.
So IMO for domaining 20% should be optimal.
@ThatNameGuy .. If this is what you're talking about, then unfortunately there is absolutely no direct correlation of 20% in one being 20% in another. What it would theoretically say is that 80% of his sales comes from 20% of his efforts. Which means that 6.4% of the 8% of his sell-through would come from 20% of his time spent on domaining (8% x 80% = 6.4%). So again .. your asking me to look again only goes to prove how little comprehension you have on domaining, math and basic logic.
(Note that I say "would theoretically say is that 80% .." because I personally don't even believe in that. Domaining is a a little more complex than that, as it involved multiple factors and skills from acquisition through to purchase. Someone could put in 5x more effort than someone else .. but if they don't have domaining skills and knowledge, then not only would they not have 5x better results, but it would likely be 5++x worse. The 20/80 principle is more of a stand-alone principle based on specific individuals and their own relative effort .. because the quality of the 20% effort in person A can vary significantly from the 20% in person B based on wisdom, intelligence and experience)
@Internet.Domains talks about everyone taking their own path ... which again .. is something I SPECIFICALLY talked about in that most certainly individual domainers can make changes to improve their sell-through significantly ... and btw .. it was
YOU (
@ThatNameGuy) who were the one who questioned any domainers ability to exceed even 2% ..
Many sell
far more than 2% a year??? Ategy...i bolded "many" and "far" because
i simply don't believe you
It boggles my mind how quickly you are to completely change the scope of a discussion simply to avoid saying you were wrong. Instead you try to twist things around and subtly change your point of view to not make your original statements seem so completely wrong and ridiculous!
Just to be clear .. when I said domainers sell over 2% you called me a liar ("
i simply don't believe you").. but when
@Josytal says he sells 8%, not only do you not question his claim, but you somehow try to turn things around and make it look like it's me who is wrong !?!?
.. it boggles my mind at how stupid you think NamePros
so-called members are! lol
