Increase In New Domain Investors... Good or Bad?

Discussion in 'General Domain Discussion' started by Silentptnr, Jun 12, 2017.

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Are More Domain Investors Good or Bad for the Industry?

  1. Good

    261 vote(s)
    70.9%
  2. Bad

    107 vote(s)
    29.1%
  1. Silentptnr

    Silentptnr PRYCR.COM Business Account VIP

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    I feel like over the past few years there has been a dramatic increase in the number of domain name investors. Not sure if it is good or bad for the market.

    Maybe the increase has hurt retail prices? Let's hear your opinion whether you are a new Investors or even investing for a while.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. tiawood

    tiawood Business Member Business Account VIP

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    I don't think your question is a yes or no answer :P Can you change that to "good" or "bad" please?
     
  3. Kuffy

    Kuffy Established Member

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    What do you mean by an investor. Is it a person who acquires a name, and parks it for income and capital gain? or is it a dealer who picks up names and hopes to profit from end users?
     
  4. Silentptnr

    Silentptnr PRYCR.COM Business Account VIP

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    Both
     
  5. hawkeye

    hawkeye Top Member PRO VIP ★★★★★★★★★★

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    In the long run - Bad.
    Too many people are jumping in this, thinking this sounds like easy money and they're gonna get rich too. They then reg crappy names, over price them, and then spam endusers to death with their over priced junk, that just ends up leaving a bad taste where endusers feel domain sellers are scammers (another growing group of newbies) etc. Also, as they hear that they should buy aftermarket domains at auctions, they see a name with bids on it and jump on to bid too (just because), thus raising mediocre names to stupid prices. They then are stuck with names that won't sell for what they paid, drop them and domaining, and gripe about the whole process. Unfortunately there's nothing that can be done, as they'll keep coming, more and more, and the domaining waters will keep getting more and more muddier and sadly pricier. The only people really happy to see more people coming into domaining, are the registries and registrars. imo.
     
  6. kemjika11

    kemjika11 Top Member VIP ★★★★★★★★★★

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  7. Asfas1000

    Asfas1000 Business Member Business Account VIP

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    Exactly.
     
  8. shorterwinters

    shorterwinters Established Member

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    hmmmm.
    I got the inside track and have for years. Competition has always been there but somewhat limited in a way.
    Suddenly there is more competition and it is coming from all over the place. Where did all these people come from and where are they from?
    Suddenly my gravy train is diluted. My customers are wondering about these other players who do things a little different. My potential customers now have many more options to choose from.
    Suddenly everyone is talking about what I have done for years where not really many before gave it much notice.
    Instead of selling 5 jobs a year for 10k I am selling 30 for 6k. Working a little harder, doing things a little different, and the game has changed a little but it looks like it's a good thing.

    Hell, I don't know but that's what I came up with as an analogy to something I have done for years and years.
     
  9. Internet.Domains

    Internet.Domains Established Member

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    There is no business sector where declining revenue and declining investment is considered a 'good' thing...That holds true with domain investing as well. It's Business & Economics 101.
     
  10. tldboss

    tldboss Supportive Member NamePros Supporter

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    I am new to the industry, have no idea what it was like a few years ago.

    Maybe its time for the seniors to pass on the torch :xf.grin:
     
  11. shorterwinters

    shorterwinters Established Member

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    I see what you are saying and it makes sense and I tend to agree with it as well especially the part of running up prices on crappy names and people thinking it is a scamming thing going on.
    In the end tho won't good names and ideas sell and rule while the mediocre and crap will still be mediocre and crap and most everyone will still know what is good idea/name and a crappy idea/name?
    Won't an enduser pay attention to something that is good and good for him and ignore and know what is crap and not good for him? I kind of think so but that doesn't mean anything,
     
  12. Asfas1000

    Asfas1000 Business Member Business Account VIP

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    Let's take it to the extreme : Suppose tomorrow 100,000 new domain investors enter the market, out of nowhere.

    What will happen ? Domains that currently sell for $100 at auction will cost $300 and whatever sells for $500 will cost $1,500. Result : majority of investors will go from black into red, due to increased acquisition prices.

    Will end user prices increase at all ? There is no reason to think so.

    It's hard to sugarcoat such cold facts IMO....and with all due respect and sympathy for new and veteran investors alike.
     
  13. shorterwinters

    shorterwinters Established Member

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    Of course but where do the reports for "declining revenue" in this "sector" come from and how are they tallied?
    How would "declining investment" be tallied? If more are entering or participating wouldn't the investment numbers increase? If that is the case and revenue is declining then there is a problem but how is all of this tallied and segmented and sorted and where would one find such numbers? I can't imagine they can be put together in such a way as not to slant one side of the argument or the other as it seems it would be extremely subjective but I wouldn't have a clue.
    (there's that new kid again, jumping in and blabbing about stuff he knows nothing about) :xf.smile:
     
  14. DomainVP

    DomainVP - Away - Business Account VIP

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    Most people quit after a few months when they realize it's not the 'get rich quick' they thought it was.

    The few that remain are the only added 'competition'.



    Think of it this way... when you go for a great domain name at auction how many people are really competing with you? I still pick up some fantastic domains for low $$$ and only been at the table with 2-3 other bidders.

    If you follow Ricks tweets he is having a similar experience at auction, so I assume thats the same across the board.

    Most premium (3L / Single Word) domains only have 200-300 people at the table (at best), watching and participating (NameJet).

    So think about that...

    7 Billion people on this rock, and only a few hundred actively buying domains on a daily basis.

    The industry is good and is still very lucrative.
     
    Last edited: Jun 12, 2017
  15. tiawood

    tiawood Business Member Business Account VIP

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    I feel it's a good thing:
    • More competition but more people to flip quickly to.
    • More companies wanting to provide more services specifically to domain investors.
    • More people to bounce ideas around.
    • More people to find out what works and what doesn't.
    • More conversations at NamePros.
     
  16. Smiles76

    Smiles76 Established Member

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    Domain investing is not a ponzi scheme. But, it's operating on similar principles these days. End user sales account for a very small percentage of domain sales. The vast majority of sales are between domainers who are artificially driving up the price of domains. New investors are needed otherwise prices would fall dramatically as most end users will never pay the prices that most domainers are asking.
     
  17. EmotiveDomains

    EmotiveDomains Active Member VIP

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  18. kemjika11

    kemjika11 Top Member VIP ★★★★★★★★★★

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    You're taking the buyer's side in this situation. Why dont you assume you're the seller at those higher prices?
     
  19. BrandSac

    BrandSac Established Member

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    from my point of view there is two side of the story:
    more investeur, more fund in the indestry, more profit.
    more investeur, more competition in the auction, lease profit.
    if you have huge portpholio this is good for you,
    but if you are small investor you will have tough time,
    so you must adapat your techniques or go home :)
     
  20. Asfas1000

    Asfas1000 Business Member Business Account VIP

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    Because you still don't have a viable business model in this scenario.

    You are selling to other investors from your existing inventory, but how do you stock up ?
     
  21. Internet.Domains

    Internet.Domains Established Member

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    @shorterwinters - I was simply making a general statement that can be applied to domain investing....More investors mean increased revenue which increases sale prices. The focus should be on the selling side and not the buy side.....Same principles as real estate. Would you rather trade real estate in Beverly Hills or Mojave desert mobile homes?
     
    Last edited: Jun 12, 2017
  22. boker

    boker Active Member VIP

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    In the same time it can be good as well... if they over price them, it will be good for the rest of us, because the other names will look like a jewel. Also, for the others who are buying more handregs or droops, it should be better, because will force everybody to extra pay for aftermarket domains and having less money to invest anything else.
     
  23. hookbox

    hookbox Active Member VIP

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    It flat out sucks! More domainers throughout the world with lower income aspirations which leads to lower margins which leads to lower sales. It used to be a few people watching names that had enormous profit potential to now being a thousand people watching the same names and paying higher prices but only expecting a very small return which destroys the overall market.

    More options at lower pricing is killing the end user market. I don't want to trade names for XX profit to other domainers either. I would rather find something else to do with my time. The flip side is with so many more domainers maybe the next phase of profitability is not end users but other domainers at lower margins but higher volume.
     
  24. shorterwinters

    shorterwinters Established Member

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    Please point out my insult to you? I did no such thing and intended no such thing. If I did so please tell me where I did.

    If you are referring to that line then I did not convey it good and I need to remember this is a forum with people the world over participating in. That was an attempt at humor by me.....someone talking about me or me talking in the third person. It was NOT a reference to you, it was a reference to no one other than myself.

    I understand the dialogue but without reports showing declining revenue and declining investment and the criteria in which those calculations were construed from that statement can only be taken as a personal experience.
     
  25. Internet.Domains

    Internet.Domains Established Member

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    Originally I read it wrong as I thought the last statement was directed at me..My bad.... :xf.grin:
     

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