discuss If domain investment is a side scam, a few points to ponder ......

[Domain.Broker]

First of all, I'm a broker and recently I've had some friends inquire about investing in domains. And then asked me whether domain name investment is a good business or a magnificent Ponzi scheme? This question sounds sensational at first glance, but the thinking reflected in it is worth every domain investor's deep thought. Here, we might as well explore a few key points:

1. The real value of domains vs. market speculation
The value of domains is due to real demand or market speculation? Are many high-priced domain transactions based on actual use, or just rely on the transfer between investors? If the value of domain names is artificially inflated, but lack of actual use support, then this “drum roll” model, how far can go?

2. End-user vs. investor ratio
What is the percentage of domain users who really use it to build websites and brands? If most of the buyers are investors rather than end-users, does it mean that the domain market is closer to a “take-over” game? How long can investors buy and sell domains to each other?

3. Investors' Profit Model
Is the profit model of domain investment healthy? How long can we tell the story of buying low and selling high? Are new funds coming in because they see real business opportunities, or are they attracted by the story of high returns? Is there a shadow of a Ponzi scheme in this model of gradually attracting new money?

4. Liquidity and liquidity risk
Are domains easy to liquidate? Compared to other investment vehicles, domains are not very liquid. Many investors may not realize this, is everyone not worried about the difficulty of liquidation? Are you aware of whether the domain you have can be sold smoothly?

5. Is “scarcity” natural or artificial?
Is the scarcity of domains natural or is it artificially created by the market? Will the increasing number of suffixes and fierce competition diminish the scarcity of traditional .com domains? Is the investor's belief in “scarcity” a fact or an illusion packaged by the market?

6. Information Asymmetry and Market Dominance
Is there a serious information asymmetry in the market? Are a few headline investors, platforms and marketing organizations in control of the market? Are ordinary investors aware of the real market trends, or are they being led by market sentiment and hype?

7. Where is the future of domain investment?
With the development of technology, new domain name system, decentralized domain names and so on continue to emerge, the traditional domain market will be how much impact? Once the core logic of the market changes, how should investors respond? Is the future of domain investment sustainable?

What do you think about the present and future of domain investment? Welcome to discuss!

 

[Domain.Broker]

As a broker, I actually look forward to a market without brokers, even though it will affect my job. But with transparency and openness, everyone trading freely and letting the real demand determine the price, the market can be healthier and more permanent, which is the way the industry should go.

 

[alcy]

u need smarter friends

 

[DediRock]

First of all, I'm a broker and recently I've had some friends inquire about investing in domains. And then asked me whether domain name investment is a good business or a magnificent Ponzi scheme? This question sounds sensational at first glance, but the thinking reflected in it is worth every domain investor's deep thought. Here, we might as well explore a few key points:

1. The real value of domains vs. market speculation
The value of domains is due to real demand or market speculation? Are many high-priced domain transactions based on actual use, or just rely on the transfer between investors? If the value of domain names is artificially inflated, but lack of actual use support, then this “drum roll” model, how far can go?

2. End-user vs. investor ratio
What is the percentage of domain users who really use it to build websites and brands? If most of the buyers are investors rather than end-users, does it mean that the domain market is closer to a “take-over” game? How long can investors buy and sell domains to each other?

3. Investors' Profit Model
Is the profit model of domain investment healthy? How long can we tell the story of buying low and selling high? Are new funds coming in because they see real business opportunities, or are they attracted by the story of high returns? Is there a shadow of a Ponzi scheme in this model of gradually attracting new money?

4. Liquidity and liquidity risk
Are domains easy to liquidate? Compared to other investment vehicles, domains are not very liquid. Many investors may not realize this, is everyone not worried about the difficulty of liquidation? Are you aware of whether the domain you have can be sold smoothly?

5. Is “scarcity” natural or artificial?
Is the scarcity of domains natural or is it artificially created by the market? Will the increasing number of suffixes and fierce competition diminish the scarcity of traditional .com domains? Is the investor's belief in “scarcity” a fact or an illusion packaged by the market?

6. Information Asymmetry and Market Dominance
Is there a serious information asymmetry in the market? Are a few headline investors, platforms and marketing organizations in control of the market? Are ordinary investors aware of the real market trends, or are they being led by market sentiment and hype?

7. Where is the future of domain investment?
With the development of technology, new domain name system, decentralized domain names and so on continue to emerge, the traditional domain market will be how much impact? Once the core logic of the market changes, how should investors respond? Is the future of domain investment sustainable?

What do you think about the present and future of domain investment? Welcome to discuss!

Domain investment is legit, but like any investment, it has risks. The key is to focus on quality domains and long-term potential.

 

[Patryx]

All the questions posed are also mine. I'm new in domaing and I'm reading many interesting posts here.
I think something is odd in this market. I think in domaing the logic of financial speculation is used more than the logic of a common market.

 

[biggie]

First of all, I'm a broker

As a broker

Hi

when you are not a broker, what are you?

the questions for sure have been either asked, posed or answered in some form or another.

10 -15 years ago, the future of this game was being discussed, from the iphone/.mobi to apps to "new.net" all being predicted as replacing .com > decentralized > blockchain > handshake > all money circulators

still, more new money keeps coming in from somewhere. newbs register here, upgrade and start posting the names they went and regged.
they all seem to have pre-learned the same beliefs about domaining.
where are they getting this get rich quick ideas from...youtube?

meanwhile, the sharks always be waiting for right opp to advantage take.
and if/when some get taken for a ride, then yeah, side scams exist and so do big ones, like massabucks.
some still trying to get their money back, while this game continues to be played.


imo.....

 

[Altetra]

I have a topic somewhere in the forums "The Reason I got Into Domaining", without that reason I would never have joined domaining, cause it would be too good to be true.
Today domaining is a fairy tale, until you are a great squatter and know what you are doing, but this concept is older, I doubt something changed. And the best of domains are already owned by someone, what remains is domaining junk which get's recycled many times through newbies.
Yes even me got into that junk, but the difference is that I have a reason, without a reason you are wasting your time and money.

 

[Kyle Tully]

Definitely a big ponzi. When do you ever see a domain name in use? I look forward to the days we go back to IP addresses.

 

[HotKey]

The only scam to domain investing is paying to learn how to invest in it.

 

[alcy]

anyone calling domains ponzi is either clueless about domains.. or ponzi... or both

 

[bmugford]

The internet is a fad.

Brad

 

[Domain.Broker]

Definitely a big ponzi. When do you ever see a domain name in use? I look forward to the days we go back to IP addresses.

Thanks, this one responds well to my friend

 

[pb]

The only scam to domain investing is paying to learn how to invest in it.

Actually, no. There's a larger scam and it's called registry premium renewals.

 

[Domain.Broker]

Actually, no. There's a larger scam and it's called registry premium renewals.

 

[nicenic]

First of all, I'm a broker and recently I've had some friends inquire about investing in domains. And then asked me whether domain name investment is a good business or a magnificent Ponzi scheme? This question sounds sensational at first glance, but the thinking reflected in it is worth every domain investor's deep thought. Here, we might as well explore a few key points:

1. The real value of domains vs. market speculation
The value of domains is due to real demand or market speculation? Are many high-priced domain transactions based on actual use, or just rely on the transfer between investors? If the value of domain names is artificially inflated, but lack of actual use support, then this “drum roll” model, how far can go?

2. End-user vs. investor ratio
What is the percentage of domain users who really use it to build websites and brands? If most of the buyers are investors rather than end-users, does it mean that the domain market is closer to a “take-over” game? How long can investors buy and sell domains to each other?

3. Investors' Profit Model
Is the profit model of domain investment healthy? How long can we tell the story of buying low and selling high? Are new funds coming in because they see real business opportunities, or are they attracted by the story of high returns? Is there a shadow of a Ponzi scheme in this model of gradually attracting new money?

4. Liquidity and liquidity risk
Are domains easy to liquidate? Compared to other investment vehicles, domains are not very liquid. Many investors may not realize this, is everyone not worried about the difficulty of liquidation? Are you aware of whether the domain you have can be sold smoothly?

5. Is “scarcity” natural or artificial?
Is the scarcity of domains natural or is it artificially created by the market? Will the increasing number of suffixes and fierce competition diminish the scarcity of traditional .com domains? Is the investor's belief in “scarcity” a fact or an illusion packaged by the market?

6. Information Asymmetry and Market Dominance
Is there a serious information asymmetry in the market? Are a few headline investors, platforms and marketing organizations in control of the market? Are ordinary investors aware of the real market trends, or are they being led by market sentiment and hype?

7. Where is the future of domain investment?
With the development of technology, new domain name system, decentralized domain names and so on continue to emerge, the traditional domain market will be how much impact? Once the core logic of the market changes, how should investors respond? Is the future of domain investment sustainable?

What do you think about the present and future of domain investment? Welcome to discuss!

Good domain names are highly valued and not artificially inflated. A good domain name can be better for bringing high exposure and traffic to your website. Buying low and selling high is a profitable mode of investment in many industries, in addition to running your own domain name website, which is also a good way to make a profit.
General Internet technology, products will become cheaper with the development of science and technology, but the domain name has the uniqueness and scarcity, relatively speaking, the value may rise.

 

[Jollygreen]

Its probably somewhat questionable lol. Out of all the domains Ive sold, I think only a handful were end users... the rest of the domain buyers looked like investors since they relisted the domains for higher prices.

Thanks for the $$$ - Ill take it. With domains, you have the most success by moving non premium domains in volume rather than sitting on a domain portfolio for years hoping to make it big. The only ones Id sit on with high markups are CVCV or single words.