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?

 

[WhoaDomain.com]

I think thee other thing we all neglect to mention here are the ridiculous unrealiatic asking prices some domainers have for their .coms.( I'm guilty of this myself)

It's one of the best motivators if not there best motivators for endusers to try and get new gtld.

If the rate.com is $1.5 million? Perhaps rate.world will be way cheaper?

 

[.X.]

As far as corporate end users, Most will give the .com owner an offer for their brand, when the price is to high, I have seen them go with a very similar name , to the name they are trying to purchase, I have seen them go with either the singular or plural of their name, which ever one is available in .com .

On the flip side, we see strictly ecommerce businesses pay a premium for their brand, The domain name to a million dollar + a year business is the same as their rent or having a building built to operate in the corporate business, It is the cost of doing business, but the corporate company already has their name and branding in their state, so purchasing the domain name is not near as important to them. They would like it. but don't have to have it.

The strictly ecommerce business needs their brand, that is their address and operations building, They only exist online, Not getting their name and brand, can make the difference in possibly millions of dollars per year.

So it comes down to who the domainers target buyer is, That is a choice that comes with the domain name you register, You can seek out and reg many corporate company names, that are not TM, Most are copyright though, as the owner makes the name, files it for their business. most know the domain name of their company is available in .com , they just don't seek to register it, as they have no online presence. I have seen their come a point when that business wants their branded business name, they have decided to make an online presence, but they wont pay a premium for it, They have a building and a ton of over head that they have to fund.

Then, you have the savvy domainers, The big daddies in the industry, They have made their way to the top by buying and selling names, domain name parking, domain name development, ecommerce within the domain name industry, snapname, namejet, efty, estibot , brandbucket, and the list goes on and on. NamePros rings a bell lol.

The industry is wide eyed alive and bushy tailed, and will remain this way. unfortunately everyone who enters the industry wont succeed, Many are not motivated for the domain name industry, just the money.

I can tell you this though, In the years i have been here at NamePros, I have seen MANY come into this industry, and become hugely successful, that on a yearly basis. I expect to see this continue for years to come. NamePros has bread some real Entrepreneurs through the years.

We all can't be in the group of the highly elite successful domainer entrepreneurs, But, If you are here because you love domaining, Your passion goes beyond being here ,and in the industry to just make money as your sole purpose, You may want to reevaluate your agenda and purpose. Give yourself a chance to prosper in this industry, find your niche in domaining, there are very many niches within the domain name industry, Most importantly, Enjoy domaining, Enjoy everything the industry has to offer you, Enjoy the friendships you establish in the industry and the forums, Let the rest take care of itself, It will if it is meant to be.

 

[Kuffy]

They build houses on drained swamp land. People rush to buy them because they are cheaper, but when the rains come, and the houses become damp and lose resale value, they try to move to more traditional locations. I bought into the swamp land domain tlds, but now I'm moving back to the big com city.

 

[Furquan]

I don't think it's dying but I had rather think it's changed lot, I have seen lot of startup with big pocket are using .io and other extension. I am not old in this domaining world's but for me the first sale of mid $xxx has come from .co, I have dozens of .com but I have yet to sold them for even $100.

 

[garptrader]

We still have the issue where startups and even larger businesses give little thought to domains as branding or marketing tools. They are just viewed as a technical requirement like buying a garbage can for the break room - no willingness whatsoever to pay a premium. Yet real businesses spend thousands of dollars on all kinds of normal operating expenditures. As a finance professional I see the spending of real businesses - have seen attorneys charging $300+ an hour and IT professionals being billed out at $100-$200 an hour or corporate travel where the senior managers fly to an out of town meeting for several days - total bill easily six figures. Yet $5k for a .COM is viewed as usury.

 

[lock]

There are plenty of gtlds that work as type ins. I am 100% that dot com is king.
But toy dot land is better than toy dot xyz for generic traffic.

 

[Smiles76]

On the days I don't lift weights or run, I will normally go for a walk. Quite often part of the walk will be along the bay in West Palm Beach. There is luxury condo complex under construction called The Bristol with a bay view toward Palm Beach island. I have seen advertisements for that location "starting at $5 million." I don't know if they will really sell for that much but they will be rather nice. Sadly, a few hundred meters north of that spot also with a bay view it is common to see homeless people who spend the night either on the sidewalk or one of the benches or even the wall designed to protect against flooding in the case of storm surge. The location is almost identical and the view not much different but those who live in The Bristol will be in a totally different world than those who spend the night sleeping on the boardwalk along the bay. That is the difference between .COM and .nTLD.

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

 

[dordomai]

i don't think companies will stop paying big money for ultra premium domains but the market isn't growing either. It could turn out to be a buying opportunity. Maybe it isn't

one thing is clear: type-in domains are dead and won't come back.

I think if you overpay for mediocre names at this point you won't do well.

domain values have been cyclical historically:

first wave .com bubble
then .com crash, domains were considered worthless
type-in boom, type-in domains were worth a fortune
then domains becoming mainstream
exact match boom
peak of values
parking decline, death of exact match
browser autocomplete
numeric and short letter boom
new extensions, oversaturated market
next cycle??? public understanding domain values? Killer generic brand selling for fortunes?

 

[souren]

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

I mean end users shouldn't be viewed as a lamb meat .
It makes me wonder , should i conduct the same habit if i want to be successful ?

 

[souren]

I see google ''read naked chok''ing the S**t out of domaining as well
TBH , 95% of the website that i visit is through google search nowadays
And i don't look at their domain names, more than 80% of the time !

I also don't think ultra premium short names are really really that valuable
Because they are simply not brandable !
For example old.com car.com shit.com etc..

There are few exceptions in some industries i believe , specially in Travel industry
Where an actual name can be a brand
That's when great success meet the great domain
booking.com hotels.com are 2 examples
But for most industries..
I think that's not the case


I might be wrong
But i can't help myself thinking in other way

 

[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