question Domain industry is dying slowly?

[souren]

Since beginning of the internet .com .net .org were always the best option for any business or personal use
names were too limited in a sense that generated a solid valuable market for the domaining business
and domain investors

Most of us as the people who are buying this so called land , imo are unaware of the fact that everyday new lands ,are being generated by the Icann ( Internet's Allah )

every year 10 to 20 new domain extension were being released to the public witch in my opinion wouldn't create a serious problem
until 2014 and beyond where +400 tld has been released to the public witch followed similarly and here were are in 2017 with 882 domain extension
witch in my opinion make owning a premium name easy,cheap, for any potential buyer
witch at the end will affect the tld market valuation
imagine if you own solarenergy.com in 2000 and the value would be a good $$$,$$$
then time passes and here we are in 2017 where you can have names like
solar.energy energy.solar and more.. combinations for
a reg fee or very cheap price
Then it would seriously affect the valuation of solarenergy.com
I see a world (in near future )where anyone can have a short and premium looking domain
that he just registered for 10$
and a market witch looses it's value everyday


That's just my thought about the future of this industry
What you guys think about this?

 

[Kate]

I once contacted a LLLL.com owner out of curiosity
And asked for their price
They returned me with 29,000$
Then once i mentioned my budget to be 2k
They immediately reduced their price to 3,000k

Is there any other industry who conduct the same habit ?

The suq in some countries...

 

[UmerK]

The domain industry as I see it as a newbie is going no where, the reason I say that is because most people don't even have the access to the internet, there will be new and growing markets for domains and most of them would take us by surprise. You could see a downward trend for a limited short period of time and should you sail when tides are high, you should end up as winner.

Business always try to move up the ladder and not go down, people who have started with ngtlds would want to go for .com to avoid traffic and email leak and people with CCTLDs when they hit big $$s will do the same. The sheer amount of people who are uneducated about the domains is one of the main reason why you MAY be thinking that industry is going down but truth to be told it is not, to elaborate my last point further here's an example.

I did an outbound on a name as I do for most names the reply I got was no thanks, I somehow rephrased it in couple of sentences asking them why not? and here's the answer from the owner/director of a mid level company in Australia who currently operates on a 4L .com.au domain "You get penalised by Google if you have multiple domains?"

If that is the awareness level within people who happen to live in developed countries how can you say that we are headed towards downhill ?

 

[Kenny]

Get this back on topic.
Next off-topic post gets a warning.

This thread also ends up the same way every time someone starts it.

It goes from back and forth discussion to political, then personal, and petty.
You guys are Pros. Please act like it.

Cy

 

[DomainVP]

Stupidity and greed is what is killing the domain industry. A 30% ROI in real estate is considered amazing. Yet, many domains will receive a 1000% ROI on their domain and still turn it down because it's not their asking price. This is why most domains will never sell.

So every domain investor making 6-figure sales is stupid and greedy?

That's not greed , nor is it stupidity; it's knowing your market and being at the right place at the right time.

If I buy a domain today for $200 and 6-8 months later a massive company comes out with that same idea. Should I sell them the domain for $500, be on my way, and be happy with my $300 profit?

I think not.

My asking price should be what I feel it's worth after examining the market and the roll the domain will play in giving me an advantage in the market. So if they can't pay my asking price, someone else will.

Fun quotes from end users this month:

"Be a fair person, make the sale." - a $1000 offer.

"Let me move on with my idea. 5 figures is nuts. Be sensible." - a $500 offer.



It is my belief that the only stupidity that remains in the industry is selling domains for too cheap.

 

[souren]

Today's top sales are a .tv name and a .io name
Well...
May the force be with .com


after reading all the members comments on the topic i come to a realization that
The domain industry isn't dying now or anytime soon at least in the next
136 years but, it is probably wise to make less investments
Specially for big names as the market is on the downfall atm like any other industry
can be

so..
Cheers

 

[Mister Funsky]

If you buy a domain for $100 and sell it for $2500 it might sound great on paper, but you also have to account for the renewal fees on 500 other domains you did not sell.

BINGO!

The vast majority of 'buyers' do not understand this...it is as if we only have the one name they want. I try to educate them as to percentages and costs. Sometimes it works...most times not.

 

[platey]

This is true . I registered a few .Fun's

And from a value perspective .fun owned by Radix has reserved domains with a simple template . They looked at all high end historical sales and just kept those for themselves.

The ones they did reserve can commandments prices from $500-$24k.

And that is not just the bin price but it's also the renewal price!!!!

So if you regged a good .fun you can argue that your specific .fun like my Rate.fun would have ( if reserved by Radix ) cost $1000-$24k a year. But since you are buying from domainer . It's a one time buy now price and then the low yearly renewal for .fun.

Rate.com sold for $725,000

It could be used for loan or mortgage or insurance.

Rate.fun? More geared for something like Yelp. Or tripadvisor.

My point? .com will never lose value to new Tlds .

Because registries are greedy.

As with any investment plan always hedge your bets. A portfolio of .com's and
.net's and .org's and new tld will increase you chances for success. Just make the right choices.

Something I do not so often! Lol

I pre registered adult. fun well in advance but I missed out on it

What would it have been worth now?

 

[WhoaDomain.com]

I pre registered adult. fun well in advance but I missed out on it

What would it have been worth now?

How did you miss out? I guess Radix had it already on their list but still took your reservation in case you wanted it for $25000 a year ? Lol

 

[Kate]

So every domain investor making 6-figure sales is stupid and greedy?

That's not greed , nor is it stupidity; it's knowing your market and being at the right place at the right time.

I don't think he's talking about those people making 6-figure sales, but the 'ordinary' domainers. The majority of domainers are losing money. Most of their names are not worth much if anything. When they get a meager offer, they decline and hold out for more... and never sell. Because their expectations are not realistic, their portfolio cannot command the prices that they want.
The first offer received is often the last you'll ever get.
I do think some domainers are greedy and delusional. But it's not a new phenomenon at all.

 

[souren]

Have a look at Gardesh.com
It's laughable
The guy listed 3 domains one of them being nearly 1 million dollar that have it's .net available to the public !
Delusional As ***

I think these people only read domain news on mainstream media !
My concern isn't these guys they aren't harming industry but themselves
imo

The question is the new trends and market changes not these greedy individuals

 

[Ootsa]

After reading this entire post to date and everyone's reply,
I believe there is an accuracy of truth in all of it.

Based on over 20 years of eCommerce experience
and domain investing; I maybe able to offer another
perspective on the present valuation (or should I say
devaluation) of domain names in the marketplace.

It's called "Development". The relationship between
supply and demand has always determined market
prices.

The market is swamped in supply of domains compared
to the pace of development of eCommerce.

Now here's where it gets truly slippery...

Should I sell cheap now because the market is down
or should I holdout for when demand picks up?

Guess that all depends on timing.

They say "Timing is Luck"!

For now, I betting Dotcoms are like fine art
and will only increase in value to the end of
time.

Thanks for listening ;>)

It's been a HOOT

 

[dordomai]

I pre registered adult. fun well in advance but I missed out on it

What would it have been worth now?

nothing

 

[souren]

The domain industry as I see it as a newbie is going no where, the reason I say that is because most people don't even have the access to the internet, there will be new and growing markets for domains and most of them would take us by surprise. You could see a downward trend for a limited short period of time and should you sail when tides are high, you should end up as winner.

Business always try to move up the ladder and not go down, people who have started with ngtlds would want to go for .com to avoid traffic and email leak and people with CCTLDs when they hit big $$s will do the same. The sheer amount of people who are uneducated about the domains is one of the main reason why you MAY be thinking that industry is going down but truth to be told it is not, to elaborate my last point further here's an example.

I did an outbound on a name as I do for most names the reply I got was no thanks, I somehow rephrased it in couple of sentences asking them why not? and here's the answer from the owner/director of a mid level company in Australia who currently operates on a 4L .com.au domain "You get penalised by Google if you have multiple domains?"

If that is the awareness level within people who happen to live in developed countries how can you say that we are headed towards downhill ?

Sorry but i have to say he was kinda right !
sometimes multiple domains are bad for SEO

 

[imadoer]

Domaining is dying?? I cant tell i have about $40,000 in sales in the last 2 months and im doing this part time. But if its dying please sell me all your good .coms lol

 

[UmerK]

Domaining is dying?? I cant tell i have about $40,000 in sales in the last 2 months and im doing this part time. But if its dying please sell me all your good .coms lol

Easy there bruh, it's dying for people with bad .coms or all ngtlds and no .coms :D

 

[souren]

It's funny how some people admit to be a newbie and answer questions like a pro

It's a LoL''ing experience to see.

Domainings isn't seem to be dying because i just sold a domain name i reg 2 week ago ! Lol
Cheers

 

[Dominic Belley]

''There is a seller on this forum, selling toys.xyz for the price of its renewal''
I dare you to show me that guy !!

I am willing to buy it for the price of renewal !

Nothing easier. Here is the auction:
https://www.namepros.com/threads/toys-xyz.1040189

 

[souren]

Nothing easier. Here is the auction:
https://www.namepros.com/threads/toys-xyz.1040189

dude i taught renewal fee is the 1$ we pay to GD
That isn't what i expected
sorry

Misundrestandediation
Rolf

 

[platey]

nothing

Namebio stats for good gtlds like this one suggest otherwise

 

[platey]

The difference with domains is that everyone opinion of a good domain name is different

Some domain investors know how to sell

Some domain investors can't sell and thus rely on auction prices

Some domain investors are skilled negotiators and enjoy the sales negotiation as much and if not more than domain investing which is why their domains sell for considerably more than market value

 

[Kate]

But negotiation skills are useless when you don't have the adequate inventory. Good names sell for themselves. Bad names rot on the shelves.

 

[souren]

The difference with domains is that everyone opinion of a good domain name is different

Some domain investors know how to sell

Some domain investors can't sell and thus rely on auction prices

Some domain investors are skilled negotiators and enjoy the sales negotiation as much and if not more than domain investing which is why their domains sell for considerably more than market value

Exactly
One other thing that i love to do but have no idea if anyone else are doing is
That i buy domain names that i do believe can help a company grow and have a better
online presence and identity

and selling out the names to them for a very affordable price
i just registered 2 names that were available to the public and sold them for 150 $
witch is a 7.5x ROI

So while i am patient for great domain names and invest on them
i also love doing some marketing & test my negotiation skill with end users to sell my
names for a 100 - 600 $ fee
to keep my pocket full for the next domain investing

 

[Chris Wright]

It's more liquid because it follows normal market practices. Domaining would be far more liquid if it did the same.

Real estate is more liquid because:
1. Demand is nearly universal.
2. There is an efficient and competitive market for financing. That can only exist because there are standardized formulas for appraising real estate.

Domains will NEVER have standardized formulas for valuation. Financing will always be inefficient.

...I am also sick of people who use tools like estibot or similar ones too
fool a client with the domain value .

Since there is no way to standardize values, some grasp at straws to help them choose an asking price. That's no excuse for that seller's behavior, though.

Sorry but i have to say he was kinda right !
sometimes multiple domains are bad for SEO

Are you talking about the duplicate content "penalty?" Companies that are smart enough to use multiple domains are also smart enough to put some unique content on each one.

If you're talking about something else, please elaborate.

 

[toughdomains]

domain industry like all is changing. however unless they change how we resolve ip addresses every new business will need a domain name. so unless no new businesses are ever created EVER.... then the domain industry will stay strong. take the shapshift news for example....its getting harder because more technology is helping snatch good dropped names...
however domainers also have more tools avaialbe to them then ever before to help them mine and sell names.
but I still see great names for sale every day and sold on namebio...long live one of my favorite industries ever created.

 

[Keral_Patel]

I don't think domain industry is dying.

I am just waiting for crypto bubble to burst