Increasing number of domainers. What effects will this have?

[Alex]

I arrived lately in the domaining biz, but see more and more people investing in domain names.

What are the long term effects of this?

I am a pessimistic/negativist person in general, and I always see a crash in mind.
I see daily many domain names dropping, and when I look at the drop lists I see that a vast majority of these are domainer like names.

Currently there are more than 100.000.000 domain names registered. I think there are bout 150.000.000, but I have no accurate data on this. How many domains will there be needed? Can we see a market crash in the near future?

And I do not refer to the generic domains that bring in some serious revenue from type in traffic, nor to the LLL's and other domains that have certain market value.

But I refer to domaining in general as a biz. newcomers rather extend this market than consolidate it. they extend it by registering names and increasing the number of offers on the market, while the demand is quite stable.

What are your points on this?

 

[Ross]

Supply and Demand

The more domainers there are the higher the prices will get because of saturation of the market.

I would not be suprised to see LLL.coms in about 5 years going for $XXX,XXX values wholesale.

Basically what im saying is in the coming years you will see lots and lots more domainers coming into the game. (Demand)

You will also see lots and lots more endusers coming into the game picking up good generics and good names in general. (supply)

So you will see the supply shrink and the demand grow = Prices through the roof anything decent.

Although, there is always room for opportunity i.e. trends, new products, ect.

So keep an eye out and dont give up. ccTLDs are always there!

my 2 cents... :imho:

 

[sashas]

More of HairyFannyQueen.com like names :hehe:

 

[goodkarmaco]

Most new domainers, and I will say I did this also, register crap names for a couple years, so who cares. Only a few become pro domainers, and that is after they learn to get the "best" names they can afford.

New domainers only make the registrarrs money.

 

[bricio]

ccTLDs are always there!

i agree with you
i have no dobut ccTLDs have a future

 

[Roo78]

I agree with goodkarmaco...in that when I started I bought some really crappy names, but understand now, why they're crappy and to avoid those types of names as much as possible.

 

[Spade]

I think the "part-time" domainer, really gives professional domainers a boost in value. With so few people who truely understand the ins and outs of domaining - Professionals have the ability to take advantage of sales oppertunities on both the acquisition and sales side of the business.

So, although new domainers mean popular ways of aquisitions get flooded, it simple creates a niche that a professional domainer can take advantage of.

Justin

 

[Aggro]

No point in bothering to read it all - I suggest you learn basic economics.

Supply and Demand

The more domainers there are the higher the prices will get because of saturation of the market.

I would not be suprised to see LLL.coms in about 5 years going for $XXX,XXX values wholesale.

Basically what im saying is in the coming years you will see lots and lots more domainers coming into the game. (Demand)

You will also see lots and lots more endusers coming into the game picking up good generics and good names in general. (supply)

So you will see the supply shrink and the demand grow = Prices through the roof anything decent.

Although, there is always room for opportunity i.e. trends, new products, ect.

So keep an eye out and dont give up. ccTLDs are always there!

my 2 cents... :imho:

 

[satsdifference.com]

can you say .name?

as much as .commers may be disapointed to hear it, the dominance of .com really takes away from all the other available extensions..

(..which is why I believe .mobi or .tv can open the eyes of the rest of the world!)

..to domaining, and even end user sites with alternate extensions

There is alot more than .com that needs to be seen and I think it will evolve as such..

The public will naturally progress away from .com extensions only as going online becomes part of most people's daily senses.. its just that whenever someone new comes to the internet, they think everything has a .com after it!

Long term - I think we may see more of a demand and thus liquidity for alternate extensions in a crowded sport

Moving further than LLL.com and LLLL.com (which don't guarantee traffic, but us domainers in some small sense have created a collectibles market for)

What about FamousPerson.name someday in the future as an example for collectible extensions as more and more people come to domaining given limited namespace?



Kind Regards,

Yelo

 

[sashas]

Here's my take:

Invest in .com
Invest in your ccTLD. No one can know your country better than you.

 

[htmlindex]

The more domainers down the track, the better it is for us. Buy as many domains ask you can now before there are too many & the prices have skyrocketed.

Invest in your ccTLD. No one can know your country better than you.

What about people that live in countries with crap ccTLDs like .mn, .tc, .io, etc. Would you also recommend them to invest in their ccTLD?

 

[domainer50]

In my mind it is a good thing. Eventually every .com from a.com to alksjflasdfljasdlfkjasd.com will be sold out and everyone will be rich!

 

[Alex]

The demand for domain name is increasing because more end users are aware of the benefits of owning a memorable, sometimes short, and describing domain names.

there is a growth in end user demand, but I do not see this growth as big as the growth of domainers and domain names registered.

I do not speak about big players coming in, that is a good thing, as prices for decent .com's are going up.

But I rather think of the reseller market and of the flooding of new domainers with limited budget that hold only names that are not likely to sell to an end user. The number of these domain is growing exponentially. Will this have an effect on the reseller market?

 

[domainer50]

How will this have anything a positive effect on the market? When markets get bought up the prices go up. Therefore the more names being registered the better chances of a price increase down the road.

 

[Sleepys]

Therefore the more names being registered the better chances of a price increase down the road.

This is not true. You are looking at names being registerred as adding demand, when in fact it is the opposite. If someone registers a name to use themselves, then it is not really on the market at all, and thus is not added to the supply or demand column. When someone registers a name as an investment, either to park it or sell it, they are adding to the supply, not the demand. If we do not see an equal amount of people or more who need to buy domains from resellers versus the amount being registerred by them, than we have more supply being added then demand. Think of the domains being registerred by investors as houses or condos being built by investors or companies, and domain sales on the aftermarkets are similar to when these properties are purchased by investors hoping that either more investors or actual end-users will buy the house. Everything works fine while the amount of new investors and people who need homes keeps increasing, but if supply and/or prices get too high, as we have seen in US real estate, then the prices tend to fall. This does not mean that houses are worthless, just not as much as when all things alligned perfectly.

I am certainly not trying to say that the same scenario is going to play out in domains any time soon. I just wanted to point out that the more domains that domainers register, the more domains will be out there, and the more will turn to junk and not be renewed. Not the other way around.

 

[filter]

new domainers regging whatever -> more money for Monte and Bob etc ... Monte maybe takes some of that money and invests in better marketing and operations budget for Moniker auctions. Bob maybe puts a little bit of that money into Adam's bonus, Adam maybe buys a few more quality aftermarket domains here and there. And so on.

new domainers trying to sell / monetize whatever fools gold to at least recoup their reg fees -> the usual disappointing / embarassing fiascos and transgressions, nothing new under the sun here, just a bit more of it.

(a few) new domainers actually learning the ropes, doing things right, maybe even finding a new angle here and there -> creating value, bringing in new money, helping to earn more well-deserved respect from the larger business community ... a bigger gene pool, innovation and experimentation - and hopefully even 1% success will make the 99% failure still worth all the chances taken to find out what works ... Evolution ain't a pretty process sometimes, but without it we'd be dead dinosaurs rather than live mammals zipping around from point a to point b in clever contraptions fueled by their fossilized remains.

 

[DnEbook]

Here's my take:

Invest in .com
Invest in your ccTLD. No one can know your country better than you.

Yes good advice ..... but in australia the .com.au is not allowed for resale unless you would be selling a busuness with it , so in this case the country code is off limits from a 'buy and flip' aspect

 

[Michael]

The same thing happened in the last few years with real estate, everyone and their mothers became agents because business was good. Only the people who understand the market and have good business sense will make it in the long run though. I look forward to domaining becoming more mainstream and it being seen as a legitimate form of investing rather than speculation.