Dan.com

discuss Have your sales slowed this year? Plus my theory on why I see a slowdown

Dynadot
Impact
183
My average domain selling price is about $900, and I normally do about 15 sales a month. But since February, it's an average of about six sales a month. That's a considerable slowdown.

I am wondering if others have noticed the same thing.

My Theory on the Slowdown

Since it seems that only about a third of my names are sold to end users, the majority of buyers are other domain investors. In my opinion, domain names, in the eyes of domain investors, are "risk assets," just like stocks and crypto. And, I would venture to guess that most domain investors also buy and sell either growth stocks and/or crypto. I think it's our nature.

So when domain investors are losing money in other risk assets, I'd think they'd have a tendency (or a cash requirement) to slow their purchases of all risk assets, domain names included. This is why crypto prices generally have been following the direction of growth stocks. My theory is the same holds true for domain names.

Furthermore, the bear market in stocks and crypto, and the global uncertainty due to supply chain, China lockdowns and the war against Ukraine, it seems would have an effect on business formation, which would also slow domain name purchases by end users.

The bear market in growth stocks started at the end of last year, but has really accelerated this year, as has crypto prices. And this coincides with my slowing domain name sales.

That is my theory.

Now, I'm very curious to hear if others have noticed the same slowdown.
 

Recons.Com

Top Contributor
Impact
16,204
Since it seems that only about a third of my names are sold to end users, the majority of buyers are other domain investors.

This is interesting. Your average price is $900 and you used to sell around 10 names per month to domain investors. How do you know it is domain investors that bought your names? Normally, an investor would buy a name for $900 if he expects 10-20x return on it, so it has to be a very liquid name. Even among decent LLLL.coms that kind of wholesale price is rare.
 
Last edited:
Impact
183
This is interesting. Your average price is $900 and you used to sell around 10 names per month to domain investors. How do you know it is domain investors that bought your names? Normally, an investor would buy a name for $900 if he expects 10-20x return on it, so it has to be a very liquid name. Even among decent LLLL.coms that kind of wholesale price is rare.
I took a look at names I've sold a year later, to see what's happening to the names.

I don't buy traditional names according to the formulas most follow. I use my gut and often get them for $5 at Godaddy or free reg. I used to participate in auctions, but never do now. So, they seem to be overlooked instead of picked off by domainers at auction. For example, I bought Tweetr.com for under a hundred years ago. Sold it for $2,588 six months ago. He out it up for sale for $25,000. Not everything is selling 5-10X higher. For example, I bought VRskins.com for $5 and sold it for $788. It's now for sale for the sale price.

I guess to summarize, I buy names cheap enough so I can sell them at reasonable prices; then a domainer sees it and thinks it's a deal and they can sell it higher.

Note: I'm going off the top of my head that 2/3 of names are sold to domainers. This is from memory of when I did a random study of 100 names last year.
 

AEProgram

Top Contributor
Impact
5,378
the majority of buyers are other domain investors.
At those prices probably all are end users but many people buy a domain for an idea they have and then they abandon the idea so they try to sell the name.

Sales are down across all industries and if things keep up like this, in a few months, I'll start doubting if I ever sold any names
 
Impact
183
At those prices probably all are end users but many people buy a domain for an idea they have and then they abandon the idea so they try to sell the name.

Sales are down across all industries and if things keep up like this, in a few months, I'll start doubting if I ever sold any names
Could be.
 
Impact
0
namepros.com/blog/are-we-in-a-domain-name-market-downturn.1273935/
Yes, as Koolishman has pointed out, this issue has been the focus of considerable, recent discussion hereon. I think that this thread-of-discussion (ToD) is at least the FOURTH such ToD in recent weeks.

Many D.name investors seem to think that sales are down this year, and many attribute that trend to the lousy economy. Recently, on Bloomberg radio, several commentators opined that we are already in the second quarter of an economic recession (the first quarter of 2022 being the first such quarter).

IMO, it is all but certain that the economy will worsen in the near future, largely because the Federal Reserve Bank has printed FAR too much money in recent years (they have printed trillions since 2008), forcing the Fed Reserve now to jack up interest rates and reduce the money supply. The Fed Reserve cannot reduce inflation unless it reduces the money supply. It is that simple.
 
Impact
22,187
My sales are down 50% for the year so far, how ever I am getting lease to purchase this year , so with the lease - purchase or payment plan selling I have gotten in 2022 , the money difference isn’t substantially large , it’s noticeable as opposed what I am used to though.

Causes and factors , I agree with most , economy , covid 19 and ect .
 

Mkt Sales Leads

Established Member
Impact
590
At those prices probably all are end users but many people buy a domain for an idea they have and then they abandon the idea so they try to sell the name.

Sales are down across all industries and if things keep up like this, in a few months, I'll start doubting if I ever sold any names
How many weeks /months since your last sale?
 
Top down