Domaining, A Risky Business

[DeluxeNames.com]

If you stop and think about it, Domaining is a risky business.

Your taking a huge risk when you invest a significant amount into domains (which is what a lot of us have done here including myself).

You're betting that a totally new system to navigate the internet won't overtake domains any time soon (which many companies are working on).

You're betting that an enterprising company won't find a way to market keywords so well that they'll effectively replace domains.

You're betting that China won't come out with it's own Icann with a whole new set of domain extensions that, with all the anti-Americanism going around, could overtake Icann if enough other countries jumped in (until it was shown to be reportedly false, there was news reports that China was thinking of doing exactly that. Honestly, I don't doubt that China is considering doing exactly that, though they wouldn't want to admit it yet). The "false" news report here: http://news.com.com/China+creates+ow...3-6044629.html

You're betting that the United States won't finally give in to the international pressure they are currently under (and their getting it from all sides) to transfer control of Icann to the United Nations and that the United Nations (proven to be the fair and intelligent institution that it is (LOL) could do any number of things to make the value of your domains decline. Maybe they'll add many new extensions that will water down the value of all domains or raise the rate of a .com so much that only big businesses can afford to own them. Maybe, because of the UN's history of being a tool for other countries to oppose the preceived domination of the United States, the UN will find a way to "balance" the ownership of domains so that it won't be tipped so heavily in the US's favor. It will be much like the "balancing" that took place in South Africa where you would lose your farm land because you were white, only this time, because you happened to live in the US.

What other domaining risks have I missed?

What are your opinions of what will end the value of domains as we know it?

 

[Damion]

I see no end. Only when the internet itself is ended then domains are clearly worthless. Otherwise i see no harm even if ICANN isn't under American governance.

 

[aldwin]

I agree. Rules may change, you just need to be fast in grasping the change.

 

[Kate]

I think domaining is not that risky...
Just like real estate I think every decent name will eventually find a buyer (or at least a purpose). Of course it is easy to lose money by investing in dubious names but I don't think you would get broke over it (unless you're spending all your wages ).
But unlike real estate domaining is much more affordable and sometimes you can strike it rich. OK, let's get real, the big sales reported every week are just a very tiny fraction of all domain names registered so my guess you have as much a chance to sell for $$$ $$$ as you would win the lotery.
Of course many names sell here for $25 or $50 but the return on investment vs reg. fee is still good...
Prices tend to go up so I think it's a wise investment, but like real estate it's not very liquid. Anyway it is wise not to put all your eggs in the same basket :gl:

 

[DeluxeNames.com]

I think domaining is not that risky...
Just like real estate I think every decent name will eventually find a buyer (or at least a purpose). Of course it is easy to lose money by investing in dubious names but I don't think you would get broke over it (unless you're spending all your wages ).
Anyway it is wise not to put all your eggs in the same basket :gl:

SDSinc, you have some very well thought out points here. You are very optimistic.


In the other forum, Here is the idea of the member called "Creature" was What if Microsoft bought out the company www.dotworlds.net and included their necessary download with their new version of Explorer (so you can see their pages). Then these new "Explorer" addresses would be things like:

go.fish
make.music
download.films
watch.television
buy.cars

A member called "Plato1" wondered if China or Microsoft might already be talking with DotWorlds.net about a colaboration.

It seems that many members of the other forum have bought into the DotWorlds.net idea. I personally thinks it's as bad as neustar and will never go anywhere without partnering with the likes of Microsoft, Firefox, or China.

 

[sjaguar13]

Of course many names sell here for $25 or $50 but the return on investment vs reg. fee is still good...

I agree with sdsinc. It's not that hard to take a $7 domain and make at least $8 with it. You could park it, sell links, or just sell the domain. You could do any combination of those. Also, if you do a little research ahead of time, you can really increase your odds of making money. It's not risky if you are not stupid about it. You have a bigger risk if you are going with blind luck.

 

[Dr.Lee]

if you hand reg names, the biggest risk is to lose the reg fee. That is not so much.
when you get a good name, you can sell it at xxx, xxx is not a difficult sale even to reseller.
if you luckly reg a premium name, that can earn you xxxx or xxxxx.
It is difficult sell a name at DNjournal reported price, but it is not difficult to make a 100% profit. just depends on your stratage, be a longterm holder or make a quick sale to get good cash flow?
It is difficult to make you rich,including me. Many people get rich by domaining, but not every one.
Take it as a hobby. A hobby just helps you to kill time, then things will seem easier.

 

[binaryman]

And what about this Unified Root? Will it make domaining obsolete?
24.11.05
UnifiedRoot launches new generation Internet domain names 'around the dot'

Bron: UnifiedRoot

Amsterdam, 24 november 2005 - Effective today it will be possible to register top-level domains (TLDs) 'behind the dot' such as .airport, .company. The Amsterdam-based company UnifiedRoot has created a new and simplified Internet addressing system allowing the registration of more logical, easy-to-remember, easy-to-locate domain names. These domains no longer need to fit within top-level suffixes such as .com, .net, .org, or country codes such as .nl, .uk, or .fr. As a result, navigation on the web becomes easier and more intuitive, while operating within the existing Internet infrastructure.

Any second-level domains (SLDs) that appear in front of the dot, such as info.company will be owned, offered, and managed by the holder of the TLD.

Internet Service Providers (ISPs) resolving the UnifiedRoot will now be able to provide their subscribers with automatic access to an 'inclusive' Internet directory. This directory recognizes all current domain names as well as some 2500 new TLDs already recognized in the UnifiedRoot directory. As ISPs adopt this new naming structure, the new addressing system is expected to take hold immediately and grow rapidly.

Erik Seeboldt, Managing Director of UnifiedRoot said: "UnifiedRoot has created a logical and essential next step in the evolution of Internet addressing. We are building a user-base -a kind of 'open domain initiative'- free of the restrictions imposed by the current dot-com top-level domain system. No longer will a company have to worry about holding and administering its brand under several second-level domains as part of the various TLDs - such as .com, .net, .uk - in order to ensure its customers are able to find them. Companies can also structure their second-level domains to direct customers to items and places where the company wishes. We are launching this project with worldwide partners such as Internet Service Providers and companies in the technology and telecommunications sectors. The current domain structure is the subject of intense criticism and a new naming system is inevitable if the Internet is to evolve."

UnifiedRoot owns and manages a network of root servers which includes 13 master root servers strategically located around the world. UnifiedRoot will conduct the registration of top-level domains under objective and transparent policies and strict ethical guidelines.

Today, end users can easily configure their systems to resolve UnifiedRoot TLDs by following instructions available on UnifiedRoot's website, www.unifiedroot.com. This change will give them access to all publicly available TLDs. To make this easier for their customers, ISPs can also point their DNS servers to the UnifiedRoot servers with a simple directory upgrade. Several major ISPs are already offering UnifiedRoot's naming system to their clients. Tiscali, one of the leading pan-European ISPs, resolves the UnifiedRoot for some 4.8 million end users in six countries.

 

[-db-]

And what about this Unified Root? Will it make domaining obsolete?

No, of course it won't, but since you've always enjoyed creating drama in the forum, why don't you rush off to post the exact same thing in the Industry News section? (even though it's been covered many times before)

Oh wait... you already did.

 

[binaryman]

Nothing wrong with a bit of drama to liven up everyone's day I always say... eh?

 

[DropLister]

http://www.dotworlds.net/ is nothing to worry about nor is new.net which has been doing the same thing alot longer. Simple novelties.


If your worried about the web thats good, but when you are paranoid...

 

[Jasdon]

With the number of businesses and individuals who have their domains printed on their stationary, and have invested fortunes on advertising their domains etc, I think that current systems are pretty safe for the next 10 years at least. A new system would have to present fantastic benefits to be able to significantly dent the value of domains.

What I do see happening is that the value of .com extention being erroded very slightly each time a new extension is introduced. My guess is that the average business (read not domain savvy) sees more value in the name rather than the extension - IMHO

Jas

 

[DeluxeNames.com]

I think Dotworlds.net has a lot better chance than UnifiedRoot.com, as UnifiedRoot's prices are ridiculously high.

If Dotworlds was bought out by a mamoth ISP like AOL or Comcast, I think their new domains would have a chance, not a good chance but at least a chance. What do you think?

Here's the scenario I'm thinking of: AOL buys Dotworlds and continues to offer all their members as well as the general public their domains for free at least for another year. They combine these free domains with AOL's free webpage builder software so that many of their members (people like free) take advantage of it to build family and personal sites. In order for their non-AOL friends and family to view the family pictures they also have to install DotWorlds "upgrade." Then many of these non-AOL users take advantage of these free domains and it spreads like a chain reaction. Isn't this plausable? Free is powerful and social networking is still the best form of advertising.

 

[iPlox]

I find domaining an interesting business, there's money if you get really involved, but just like every other business, you wont make big bucks unless you make big moves.

 

[matt_bodis]

Domaining is not a risky business whatsoever for me. It is not the stock market, values do not go down. It is exactly like real estate, maybe even more secure.

 

[niceguy]

If you stop and think about it, Domaining is a risky business.

Your taking a huge risk when you invest a significant amount into domains (which is what a lot of us have done here including myself).

You're betting that a totally new system to navigate the internet won't overtake domains any time soon (which many companies are working on).

You're betting that an enterprising company won't find a way to market keywords so well that they'll effectively replace domains.

You're betting that China won't come out with it's own Icann with a whole new set of domain extensions that....

I agree....domaining is a risk and its getting riskier. It would be better for the domain market if more people realized how risky and difficult domaining is.....and got out of it.

For those of you that have read the above and are concerned about your domians - drop me a PM with a list of everything you want to sell.....and remember (while you are trying to decide whether you should or not).....Remember - EVERYDAY we are one step closer to one of the above potential scenarios. So the sooner you sell the better.....PM me with your domains... :o :p




(Btw I don't disagree with the potential scenarios listed above, and it is prudent to be thinking about them - but I and many others believe that domains (in a similiar form as they are today) are going to be around for awhile. The risk of change that will make something obsolete is always there - so you assess the risk the best you can, and decide if its for you and then act accordingly).

So - PM me your domains......

 

[DropLister]

AOL is such a 90s company lol, I hope they just fizzle out soon. All these alternative domains are stupid just dont get them. your almost better off investing in us.com and all those. If you see risk in $7 domains then... Even $1k domains the risk is low cause the investment is low


Dont yell bomb on a plane when there in no bomb. We can do without the needless panic

 

[Volholic]

I started domaining about 5 or 6 months ago and have found I have a passion for it---I did not have a clue when I started what I was doing----but reading this forum almost daily has really helped----I bought some names in the beginning that might not be worth anything----or someone might give me 500 for 1 next week -----I have had them listed on Sedo for several months and I guess getting no response on there that I was a little discouraged----I posted some here and some of my adult names in an adult forum last week and it was my first sales as a domainer----I sold 4 here and 3 on the adult forum---I did not get rich selling these but I got my money back or doubled or tripled it on all the names and these were out of a list of about 40 of my 140 names that I did not think were very good---and I got an offer of 90 on another name that I decided to keep for the moment---so I am a little bit more excited about domaining this week---I guess what I am trying to say is if someone like me who knew nothing about this business 6 months ago can make a little money---then I think it is a very good business to be in---but like any kind of business---it takes a little hard work----JMO
Sorry about being so long-winded

 

[GreenGambler]

I hope none of these companies that offer other .ext's take off. Who knows if they will or not, its all about the marketing, effeciency/ease of the new ext.s, and the publics willingness to accept these new ext.'s.

I doubt it will catch on, I still have friends that think .com is the only ext out there, ohh yeah wait they forgot about the .net one.... :hehe:

Don't reg any of these Generic Trash Ext's and we should be fine.

 

[binaryman]

Well if the Iran crisis triggers Armageddon as described in Revelations then perhaps the domain business will go for a loop..as well as most other businesses(except the arms industry) and then eventually possibly nothing much will need to be worried about anymore as there wont be anything left to worry about or even worse.. anybody to do any worrying about anything at all. :td: I,d say life itself is a risky business.