Does domain name have a future?

[hangtian]

Does the future of domain names depreciate or appreciate? Explain why

 

[JB Lions]

Will depreciate for sure.

Everything changes. It's very wrong to assume domains will always be needed or their current form will never change or a better alternative will never be invented.

Homes still have addresses. Internet/sites aren't going anywhere, they usually have names.

 

[Bob Hawkes]

I hope you will explain a bit more exactly what you mean by the question, @hangtian (and welcome to NamePros!).

As @Ategy.com wrote the vast majority of domain names that are currently held will never sell, and the majority that will sell will probably take years. That is depressing, I know, but realistic.

By being as informed as possible, working hard, focussing on real evidence and not depending on easy answers you might hear, having a plan, being open to being wrong and modifying your plan over time, etc. will improve your chances, but even breaking even is not at all easy. Some people do very well at domaining though.

If you meant, overall, are domains going up or down in price, that is hard to answer. The average price of publicly reported sales is going down somewhat, at least from 5+ years ago, but is that just because the quality of what is being sold is going down (since so many locked in) or that there are more domainers selling more names some of which at low prices. I am not sure. I read every day on NameBio those with past sales, and generally there are more down than up. But that may not mean what it seems to.

I think the future of domain investing is challenged by new search, voice and AI assisted presentation of results, and the great popularity of platforms like Wix that do not require a domain for each site.

I think there are opportunities for new uses of domain names however, and see evidence that some companies are moving from a single domain to use of multiple ones for different purposes.

Overall, I think if people decide they want control of their information on sites they manage, the future may be bright.

It is a tough question.

Bob

 

[Ategy]

99% of domain DO NOT have a future ... Because nobody will ever want to use them.

The remaining 1% DO have a future ... Because they are good to great domains that people will want to use.


Explaining anything further is really too long to put here ... you need to take time to learn about domains and domaining. About how to buy good domains that people will want to use at low enough prices so that of the very few that you sell, they will pay for the rest of your portfolio that does not sell.


Now go read all around NamePros .. there's enough information to keep you busy for days if not weeks. After that I also suggest you check out the blogs and podcast ...


Good luck!

 

[frank-germany]

domains have a future

even the sun has a future
but only for 5 billion years

domains may live shorter

 

[HotKey]

Well, as Ategy alluded to, so many factors may determine a good investment. It depends on the domain name, and the extension it sits on.

But to put it in a nutshell, domains that are instantly usable and recognizable, have a mass appeal- or at least the potential for a mass appeal (future tech, trends), will appreciate over time. Whereas domains that seem obscure, or are not combined or worded appealingly, or geared toward a very tiny niche, will likely depreciate.

 

[frank-germany]

@frank-germany ...Even if domain names will be around for a very long time in the exact form of today, possible increase in supply would lower domain value. ...

I was worried about this
in 2001
in 2008
in 2010
and in 2014

I just stopped being worried at all

 

[Bob Hawkes]

But to put it in a nutshell, domains that are instantly usable and recognizable, have a mass appeal- or at least the potential for a mass appeal (future tech, trends), will appreciate over time. Whereas domains that seem obscure, or are not combined or worded appealingly, or geared toward a very tiny niche, will likely depreciate.

I agree with this in general but I think one also needs to keep in mind how subscribed a niche is. Like blockchain is clearly important, no doubt, and many blockchain names have sold. But also, in some TLDs especially, it is way over-subscribed compared to any possible end use. As was pointed out with Libra I think something like 17000 domains are registered in it. Now even if Libra is a big thing and no TM issues, I can't perceive that anywhere near that many are needed.

On the other hand a niche could be small, but if you are the only one, or one of just a few, serving that niche, you might still do OK with your domain names (if, and it's a big if, you can get them noticed by the people in that niche).

But in terms of rapid flip and liquidity I agree entirely that names with broad appeal are way easier to flip to other domainers and perhaps easier to get looked at by end users.

Bob

 

[Super-Annuation]

Right now, gTLD's are growing in popularity, as are what I'm going to call blockchain domains for dApps and all (.eth and all that.) Also, Google algorithm will change to accommodate rising popularity in gTLD and content quality.

So if you're asking will the .com have a future, that depends on technology and consumer behaviour.

Bob stated that prices are falling, loosely speaking from me here. But as he said, there are a number of variables that correlate with this trend. Could be more people selling more rubbish, again speaking loosely.

I guess, like in finance we watch institutional investors, watch the heavyweights. If they start moving domains then something is up.

My opinion, .com has at least a decade in it before anything serious affects the value of genuine mid 5 figure .com domains. Research and you'll see: Blockchain, will grow in 6, cryptoassets cap will triple in 6 from 2.16 to 6.68. These will be the backbone behind new tech, like the internet and computers have been.

 

[poweredbyme]

Does the future of domain names depreciate or appreciate? Explain why

Will depreciate for sure.

Everything changes. It's very wrong to assume domains will always be needed or their current form will never change or a better alternative will never be invented.

 

[Jurgen Wolf]

Everything changes.

Except addresses/coordinates.
They are used for centuries...

 

[poweredbyme]

Homes still have addresses. Internet/sites aren't going anywhere, they usually have names.

Address form can change. Example? Just compare addressing system of SSD and spinning disk. in the very near future Address form using in spinnning HDD's will be extinct with HDD's. CD's have been replaced by flash memories long time ago. How long did we use CD's, HDD's and floppy disks? Not more than 30 years? How long do we use domain names? More than 30 years? Perhaps we are living in the last days of domain names?

Home addresses, even all types of addresses can completely extinct but it can take centuries. It's wrong to assume people will always use homes or at least in the way they have used since the last few thousands years.

We will use very different form of internet. Domain names have already being deprecating and their forms have already started to change with gTLD's, nTLD's, IDN's, decentralized domain names, DNSSEC, etc.. These are small signs of the ongoing changes in the form of domains. Those changes will never stop until they extinct domain names.

It's wrong to imagine the future with the current tech level and habits.

 

[JB Lions]

I agree. But form of internet has changed, dial-ups, DSL, fiber, 3G, 5G, mobiles, satellite ISP's etc. After a few additional changes it can potentially turn to a complete different thing. As IP form has changed with ipv6, we can assume we will not use IP numbers as we use today. If I go further it's quite possible we will not use websites, hence domain names, browsers, etc. It can be a complete different thing that does not require domain names or unlimited number of extensions can possibly work for free after some major changes in DNS protocol. Having a brand dot com maybe meaningless as "brand dot anything" or even "brand anything anything" can perfectly work. Then it may be impossible protect TM or TM can change its form and may not apply domain names. Therefore brands may stop bothering with domain names for their online presence. Or internet can go out of control completely, can turn to a chaotic place and big brands may force governments to label the internet as illegal. They can start campaigns against internet on alternative media channels and can easily have enough number of supporters in case of a referendum is needed in some countries.

Oh boy. You mention dial-up, dsl, fiber........... with all that people were going to sites with.............an address. You're really not posting anything new. Again, every year we have people come post this stuff.

https://www.namepros.com/threads/the-death-of-domaining.870030/#post-4941342

https://www.namepros.com/threads/ho...ustry-10-years-from-now.1091032/#post-6809266

 

[Sheogorath]

Domains have a future for the next 20 years.
Premium domains will appreciate, poor quality domains will depreciate.
How do I know ?
I came back from the future

 

[poweredbyme]

Some people may make sales immediately from the very beginning through their own social network and think domain business is wonderful for everyone. The reality is way different, most people have insufficient social network and sales skill. Also, in fact, anything, not only domain names, can be sold to a good social network but usually for a limited time and in limited quantity.

A randomly chosen business likely bought only 1 or 2 domain in its whole lifetime. This is an inherent disadvantage of all domain names, including premiums. Need is not continuous. Almost each time you need to find a different buyer. This makes the domain sales less sustainable than most businesses, especially if you don't have thousands of domains in hundreds of different niches. Having large portfolio has different drawbacks. It's difficult to setup a solid strategy that will work well in the long term. Most domain sales are pure coincidence, are not predictable as a result of planned, systematic work. Hence it's almost impossible difficult to rinse and repeat or scale up what worked. What worked usually works only for once or twice unless you have a large portfolio to notice a possible pattern. Each time you have different domain and different potential buyer. Different buyers are mostly new startups with low budget for anything. It 's more of a guesswork on how many startups will appear in which industries, in which locations, etc.

Oh boy. You mention dial-up, dsl, fiber........... with all that people were going to sites with.............an address. You're really not posting anything new. Again, every year we have people come post this stuff.

https://www.namepros.com/threads/the-death-of-domaining.870030/#post-4941342

https://www.namepros.com/threads/ho...ustry-10-years-from-now.1091032/#post-6809266

In fact you are not posting anything new and have just proved by showing us your very similar thoughts you posted in 2015.
You say domain is a name of something and a door, without a name nothing can exist. These are partially correct arguments. While most things have only 1 name, 1 direction and 1 address, those are not static. Nothing is truly static.

I was worried about this
in 2001
in 2008
in 2010
and in 2014

I just stopped being worried at all

As you worried about oversupply risk in the past, we agree it will lower the prices if happens. What we don't agree is only whether it will happen or not.

Domains have a future for the next 20 years.
Premium domains will appreciate, poor quality domains will depreciate.
How do I know ?
I came back from the future

Domain names have high substitute alternatives. This makes the prices highly elastic. If domain A and B are substitutes to eachother, buyer very likely buy the cheaper one even if the price difference is very low. That's why most domains are not sold or are sold for under xxx. It's difficult to rationalize top prices of premium domains when there are cheaper alternatives. Today price of a premium domain will be affected by number and prices of its cheaper alternatives. I think their prices should raise for a while as their supply quantity is very low and they have many potential buyers. But I don't this upward trend will last for additional 20 years. It will cease somewhere before 20 years, in my opinion.

 

[ThatNameGuy]

Does the future of domain names depreciate or appreciate? Explain why

We all have a name don't we? I've been starting, operating and yes "naming" businesses long before most on this message board were born.

The honest answer to your question is, "it depends". IF for example permanent cyberspace gridlock were to happen, there'd be no need for domains, and the domains that exist would become worthless.

However, IF you're creative, innovative, and forward thinking you may just have a future in the domain business And, IF you're hit by a truck crossing the street this afternoon, you probably don't

 

[NickLim]

I have a feeling the value of domain names will become less and less valuable over time. There's no intrinsic difference between any domain name, and no one browses the internet by typing in "thethingtheywant.com" anymore.

 

[Brands.International]

I invest in domain names because I personally think they will appreciate. If I would feel they would depreciate, I would not be here investing in them.

But I think only very good domain names will appreciate in time, be it great new gTLD names or great .com names or great ccTLDs. This is very small set of names.

Most of the names registered are total garbage, and as such, they are liabilities ... so they will not only depreciate, but they will also cost you renewal fee each year.

Summary: if you can not invest in best domain names, do not invest, as garbage names will only depreciate, imo

 

[HotKey]

Yep you'e right Bob. Great points. Getting the priority domain on a tiny niche is definitely not a bad thing. When it comes to the Libra example, which we could consider trend or future tech, I think this is one of the many nuances/gray areas for domain appreciation. I think in cases like this, unless you've grabbed a generic front-runner, its a risky endeavor.

 

[Jurgen Wolf]

We still use the original internet as it was designed in 80s.
Only IPv6 was added due to the current size of internet.

 

[Jurgen Wolf]

I still don't understand: what sense in this futurology (xx years ahead)???
For almost all registrants - risks are limited to 1 year.
You can always stop, just don't renew.

 

[Daniel Owens]

I agree and 90% of domainers already know that apps are quickly replacing domains.

Will depreciate for sure.

Everything changes. It's very wrong to assume domains will always be needed or their current form will never change or a better alternative will never be invented.

 

[ThatNameGuy]

This question is very childish.Sorry, imo.
What is the future? Healthy children may grow up to be incapable, and disabled children may become world superstars in the future.
Isn't mobile APP the next generation of WEB? QR codes are also a substitute for SEARCH, but does it affect names? In my opinion, in the future the industry will be integrated, speculation will be eliminated, and people who really understand it will appreciate.

"Change" is inevitable over time...not imo, but a fact! Where i see opportunity (and lots of it) is the way domains are marketed/sold to "end users". Very little if anything has changed in this regard since I learned about this industry just two years ago.

Verisign was right a year ago last November when they said:

"Flipping domain names or warehousing them to create scarcity adds nothing to the industry and merely allows those engaged in this questionable practice to enrich themselves at the expense of consumers and businesses."

Regardless of how good you are with names/domains, if you can't get them in front of the right people you'll FAIL miserably. The holier than though attitude of the "so called" professionals in this industry is absurd, condescending and outrageous. I've witnessed some of this total BS first hand with a local register/registry Dominion.Domains first hand when they raised the price of a domain that I showed interest in; HomeSweet.Homes, from $185 to $64,000. Then the fools when they learned how pissed off I was offered to give it to me....btw, all this is documented, but I ask, How Screwed up is this?

My advice to the majority of you reading this, if you own domain/names for the real estate industry, either find a broker who can take your name directly to the industry members or new players coming to the industry or find a way to do it yourself. The same thing goes for the healthcare industry, the restaurant or food services industry, the sports industry, the trades industry or any other industry that may have a need for your domain.

Finally, one last thing about "adding value" to your domains. I've mentioned before about adding a simple business model/plan, b
ut adding or offering a "free logo" with a domain can add value as well.

That's it for now...back to my plan to revolutionize golf for which I own the domains; RevolutionizeGolf and 9Time™.....FORE!!!

 

[ThatNameGuy]

I invest in domain names because I personally think they will appreciate. If I would feel they would depreciate, I would not be here investing in them.

But I think only very good domain names will appreciate in time, be it great new gTLD names or great .com names or great ccTLDs. This is very small set of names.

Most of the names registered are total garbage, and as such, they are liabilities ... so they will not only depreciate, but they will also cost you renewal fee each year.

Summary: if you can not invest in best domain names, do not invest, as garbage names will only depreciate, imo

Marek...on the one hand i agree with what you're saying about there being a select few domains that will appreciate over time, but on the other hand I believe there are lots of domains (literally millions) both registered and unregistered that are perfectly suitable for global consumption today. Let me give you an example...i just sent a Linkedin invite for the new CEO of Go Daddy Aman Bhutani to connect with me about an idea I had about a year ago for a Celebrity "Name" Show starring Pharrell Williams (R & B artist who sings Happy), and guess who would sponsor the show? So guess what domain I just registered to show Aman I'm serious.?.....CelebrityNameShow.com

Now to register the domain CelebrityNameShow and list it with the likes of a Sedo, Uniregistry or even Afternic (owned by GD) and hope and pray they sell it for you is absurd imo. However, to either develop it or get exposure for the name in Hollywood with producers, directors, artists etc. or Pharrell Williams himself would be the smart move

Good Luck Marek, and keep up the good fun fight

 

[DonDraper]

I have a feeling the value of domain names will become less and less valuable over time. There's no intrinsic difference between any domain name, and no one browses the internet by typing in "thethingtheywant.com" anymore.

Google "The Power of Brand" you'll find a lot of useful informations