Domain market set to crash?

[Chappy]

What do you guys think about domain prices going into the future. Are they certain to keep rising or is it possible for the bubble to burst and prices plummet?

I ask because I notice in the dot com boom people were paying ridiculous prices - for LLL.com, .net, .us etc. and prices have come down since then.

Does anyone think putting money into domains (particularly LLL's) is a sound investment? It seems like the recent appreciation in prices is far better than the rates you get at the bank!

 

[.X.]

I don't see the market crashing,The industry is strong.But just as anything ,Prices will go up and down.Mid and high level LLL .coms are an outstanding long term investment imo.

 

[Fleege]

Ive never been a fan of obscure 3 & 4 letter domains. I understand well established organizations would like to own their own abbreviations but other that than that I dont understand their values and would spend much for them... Like the ones with mixing O's and 0 etc.

Stick to good concpetual names. Short brandable names. memorable names. Stay with .coms AND BUY LOW. Then a little crash wont hurt. Just a better time to shop

 

[Aaron D.]

A simple rule to investing is to never invest more than you can afford to lose. That being said it is unlikely that the .coms will bust in the near future.

 

[Badger]

a question a bit like asking steelers fans whos gonna win the super bowl next year - so being as objective as i possibly can be with such an avid interest in it being a bull market:

The internet as it is today is about 80% saturation. The internet as it will be tomorrow (hyperthetically speaking) is probably at 1% saturation...

Tv and phones merge with internet = the worlds your oyster..

 

[noname]

diversify,
buy some domains
buy some stocks
buy some realestate

and most importantly buy a nice car, you don't want to be a rich old guy because you saved all your money.

 

[Chappy]

GREAT advice. Just bought a nice car. Will upgrade to a better one once I get on the DNjournal leaderboard...

 

[cache]

I don't think it will crash, at the worst the price may not rise as fast as in the past..

 

[smub]

i agree with cache ... domain industry is pretty strong and it won't crash that easily. The prices won't increase as fast but it won't crash. LLL.com , .net and .us are always good investment ... you can do short time investment in those domains and still make profits

 

[Paddy]

Good / premium names will hold their value and increase. Frothy 2nd and a 3rd liners are likely to be shaken out.

If the US economy softens and/or the new Fed chairman rises rates too aggressively, domains like other assets will surely take a hit. IMO

 

[mole]

Domain value has been fueled to a large extent by PPC earnings. In the mid-long term, earnings from PPC are expected to come down as PPC fraud continues to go up, making earning multiples a theory rather than something to base valuation on. This will cause an overall softening of the value of "direct navigation".

 

[AdoptableDomains]

The last .com bust came for the same reason the stock market crashed causing the Great Depression. In both cases, people got into buying frenzies witout regard to the income potential of what they were buying. They just assumed things would always keep going up on any garbage domain or company stock.

I don't see the current market like it was in the .com boom/bust. The buyers seem to be buying with a purpose and plan, knowing the development potential and what can and can't be feasibly done on the internet with current technology. Web technology for shopping, shipping, and online payments has come a huge way in the last few years. Some things that were not possible in the .com boom may be possible now with better UPS and USPS shipping, Paypal and other online payment systems, and broadband speeds more prevelant for pain free shopping.

I see steady controlled growth with premium names getting premium prices and crap names NOT getting premium prices, unlike the .com boom where many did.

 

[mole]

I see steady controlled growth with premium names getting premium prices and crap names NOT getting premium prices, unlike the .com boom where many did.

Crap names are getting premium prices at auctions, because people have chosen to widen their ideal on what is premium and what is crap. There seems to be a lot of inefficient bulking out of portfolios at overloaded prices today. And when that happens and the imagined revenues from these overload purchases do not gush in, then prices must, by natural attrition, come down.

 

[athletec64]

IMO,

I don't think the domain market will crash. If anything, prices will just stay the same and rise extremely slowly. I mean, we live in an increasinly more digitized world, where the internet is the future...

 

[DJ-Sound]

its split, prices for crappy domains have decreased, prices for good domains have increased. It used to be easyer to make a quick buck.