discuss Is domaining will lose its value?

[Flipsbay]

Hello Guys,

its not like i am predicting domain will lose its value, what i was thinking:

Domain is meant to be developed website right? But right now its becoming a cyber stock market and most of 3L,4L of all extensions are regged out. Even 5l extension of .com is regging out.

Now my point is when i started my online presence with my hand reg domain Freebietemplate.com ( i know a bad name ). i was a web developer back then and i needed to sell my website templates, it costed me near 8.99 for the domain + 50$ for hosting and boom thats it. I opened my online business for as low as 60$. But now as we are regging out 4,5 or even 6l how online start ups will effort the domain they need for there online business as some of us ask insane amount of money for our domains.

1 year ago if some one wanted to buy a domain and saw its not available they simply went for another one as they had choices but now as random letter combinations are bought out they actually no more have any options.

Dont you think its a lot of money for a domain to a startup?
How many company develop sites and how many stat ups?

Company's buy domains once but startups are created each day.
Also not every people know how to contact domainers will we lose sales because of distribution? ( buying domain is not simple as regging domain at godaddy we need to know how to use escrow, how to push domains etc )


So in my view does this domain think will lose its value because of over pricing and lake of proper distribution?

Any thoughts on the matter are most welcome.

 

[snuzzyki]

Well i think it might be true many People want to Pay reg fee only not like $xxx for domain and it is easy only to us to do domain transfer etc many people just dont know how to contact owner and other thing is that world is full of all kind of business people do slavery work in the east for less than $1-5 a day, many simply cant afford a piece of bread and never heard of online domain - it still remains an exclusive product on the market

 

[Flipsbay]

Well i think it might be true many People want to Pay reg fee only not like $xxx for domain and it is easy only to us to do domain transfer etc many people just dont know how to contact owner and other thing is that world is full of all kind of business people do slavery work in the east for less than $1-5 a day, many simply cant afford a piece of bread and never heard of online domain - it still remains an exclusive product on the market

Thats a very good point but still a lot of people who use internet is eventually the buyer of domains, like people who use facebook are the ones who can effort monthly internet fee and i think they can effort almost 1$/month for a domain, but when it costs them near 10$/month or even 100$/month for a domain they simply will not buy a domain, So we lose a lot of buyers.

Internet thing is still not on its pick and a lot has to come in next 5-10 years. Pricing like this is very expensive.

Thanks.

 

[snuzzyki]

The only one who earns on it is registrar either you or them have to buy a domain if you want to have your site.
If the idea is good someone will surely pay for it sooner or later.
We didn't know iphone will be called iphone or xperia - xperia
It's more complicated and easy 2 in 1 with domaining.

 

[WatchDogue]

In the late 1990s we acquired domain names for a small start-up and, for personal type websites.

We also acquired several additional domain names for redirects/ points to our sites.

We planned to have a " real web " of related sites tied to our sites.

Our names were acquired for web use rather than potential sales.

Soon however, domain name sales inquiries occurred as other start-ups wanted to purchase our " extra names " and we sold some.

And reasonable alternative names often could be acquired back then by start-ups for hand reg fee costs.

Overall I agree that the cost of a small start-up is likely impacted by the cost of a quality domain name particularly comparing/contrasting the name prices of today with those of many years ago.

Also impacting start-ups is being listed prominently enough on search engines to bring traffic to the website.

IMO, overall a quality name today remains and retains a commensurate value in the marketplace.

 

[Apprich]

Hello Guys,

Dont you think its a lot of money for a domain to a startup?
How many company develop sites and how many stat ups?

If they don't have money they don't have to buy 4L, 5L etc.. They can go and get some random long names.
If they have money or they earn money they come and buy quality short name and then have to pay cost. It's simple as it is.

 

[Rajnish Prasad]

Its true that domaining has grown many folds and is gowing at a rapid pace but unlike other business this sector is very unorganized. The reason being unawareness among the end user section regarding the accessibilty of domains, registrarion and many such technicallities involved right from buying a domain till developing it.
If we have noticed correctly then we will find that 80% of domaining activities revolves mostly around the domain sellers, brokers and the resellers and the buyers (who are not the end user) and rest 20% of them would be the end users or probably less than that.
The need is there for Domain Retailing which means finding out ways to get in touch directly with those end users who are in need of your domains or we can Direct selling or marketing.
This can work in many ways for exmaple as the Banks are selling their credit cards or loans by directly reaching to their customers

Once the end user section will have direct & easy access to these products then probably there will be very less unused registered domain sitting and gropping up renewal fees year on year.
I could assume that things & initiatives are underway and soon we could find a distinctive end user market where the participation % of end users would be high compared to brokers and resellers.

 

[Flipsbay]

If they don't have money they don't have to buy 4L, 5L etc.. They can go and get some random long names.
If they have money or they earn money they come and buy quality short name and then have to pay cost. It's simple as it is.

its not that simple as it sounds mate. The thing is quality keyword targeted domains are regged out a long before the 4l craze. Even if you look at 2 word .com domains the good ones are already gone. Do you think we should go for 3 words? no. Actually at this point people went to brand able pronoun able domains like example fobos,luma you get the idea and boom here we are again at the point we started.

Though i understand what you are trying to say, and i aggree at some point but still can't ignore this fact. It might seem a very silly topic but As a domainer i really can't miss points like this

Thanks.

 

[Flipsbay]

Its true that domaining has grown many folds and is gowing at a rapid pace but unlike other business this sector is very unorganized. The reason being unawareness among the end user section regarding the accessibilty of domains, registrarion and many such technicallities involved right from buying a domain till developing it.
If we have noticed correctly then we will find that 80% of domaining activities revolves mostly around the domain sellers, brokers and the resellers and the buyers (who are not the end user) and rest 20% of them would be the end users or probably less than that.
The need is there for Domain Retailing which means finding out ways to get in touch directly with those end users who are in need of your domains or we can Direct selling or marketing.
This can work in many ways for exmaple as the Banks are selling their credit cards or loans by directly reaching to their customers

Once the end user section will have direct & easy access to these products then probably there will be very less unused registered domain sitting and gropping up renewal fees year on year.
I could assume that things & initiatives are underway and soon we could find a distinctive end user market where the participation % of end users would be high compared to brokers and resellers.

i totally agree with you domain are not even close to be well distributed as a retailing product. Domainer to end user sales can be improved dramatically and impact on the hole industry. we can target end user sales with massive reseller interest.

 

[biggie]

quality keyword names will always exist and in-time, some can be hand-registered.

as new inventions, products and services are created, so to, will opportunities to register domains around those areas..


one just has to think outside the box, that has been created for you now.


imo....

 

[HUKU]

i was a web developer back then and i needed to sell my website templates, it costed me near 8.99 for the domain + 50$ for hosting and boom thats it. I opened my online business for as low as 60$.

I don't think anything has changed except that it is now even cheaper to start a business online. The reality is that no-one has to use your domains. Everyone has a choice and there are always options even if there are less options than there were previously. Importantly, it is highly improbable that all the options will ever get exhausted even purely in dot com.

If I cant register "SuperInsurance.com"
I can always go with "Insurance124.com" etc

Not all domains will sell which means ultimately they may well come back to market through expiry. And as I said, there ALWAYS options although it wouldn't surprise me if governments suddenly come up with some silly idea of hastening that process by increasing renewal fees.

On the other hand, again, everyone has a choice and there are is always another CHEAPER option available - which is precisely what creates a market place. Usually where people fail the most is in their ability to be thoughtful and employ some creative thinking when choosing a domain name.

 

[Leopard]

Just some insights from my experience

Business naming:
It works in 3 to 4 phases.
1. Usually founders hand regged domains initially. - $10
2. During development and closer to launch, they work on marketing and think of names seriously.. consult with friends / professionals, run contests or try buying. Usually the budget is around $500 to $2000. Extensions mostly include .com and sometimes .io
3. If they get well-funded they look out for premium names and try to re-brand if they can. This is where u can expect $$$$$ 5 figure sales
4. Sometimes some businesses want a category-killer generic .com. This is when 6 figure sales come in. Usually this is a running and successful business. or they got some seriously heavy funding.

Takeaway : Domains are valuable at various phases of a business life-cycle. Businesses upgrade and Pricing varies on requirements. So good domains will always be sought after.

Purpose of domains:
Domains are sought for company naming, marketing+advertising campaigns, social media stuff or sometimes just to redirect and keep a competitive advantage with generic terms. So pricing depends on how much valuable it is and why they want to use it + budget.

Types of domains:

• Short domains (1L to 4L) will have value. People like it short. And if not pronounceable some can be used as acronyms.
• .com will always be the preferred and final destination for a business. They may start with other extensions (register free most often) and try to migrate to .com
• Generic product / service domains can be used for product information, blogs, lead generation and redirection. They will have value as well
• Brandables is unpredictable, often meaningless and since there is no correct spelling.. sometimes business just hand-register an alternate spelling. ex: if zocis.com costs $1000 and zokis.com is free, they may tend to choose free alternative along the lines. Short brandables 4L to 6L can still get value if they sound really good and have some nice root words / logic
• I really dont know many users using numeric.com other than china. My opinion is a bubble. Yes some short ones will make good $. But i dont see most sell to end-users.
• Likewise i dont see much good value on most new extensions. .com is end-user favorite. always will be.

All this said, domaining has many surprises and somethings cant be predicted. No foolproof equation on what a domain value exactly is. You can invest wisely - 1) Get domains cheap and flip to other investors 2) Get quality names and find end-users. Domaining will exist as long as internet does.

Happy Domaining
Leopard

 

[Flipsbay]

Just some insights from my experience

Business naming:
It works in 3 to 4 phases.
1. Usually founders hand regged domains initially. - $10
2. During development and closer to launch, they work on marketing and think of names seriously.. consult with friends / professionals, run contests or try buying. Usually the budget is around $500 to $2000. Extensions mostly include .com and sometimes .io
3. If they get well-funded they look out for premium names and try to re-brand if they can. This is where u can expect $$$$$ 5 figure sales
4. Sometimes some businesses want a category-killer generic .com. This is when 6 figure sales come in. Usually this is a running and successful business. or they got some seriously heavy funding.

Takeaway : Domains are valuable at various phases of a business life-cycle. Businesses upgrade and Pricing varies on requirements. So good domains will always be sought after.

Purpose of domains:
Domains are sought for company naming, marketing+advertising campaigns, social media stuff or sometimes just to redirect and keep a competitive advantage with generic terms. So pricing depends on how much valuable it is and why they want to use it + budget.

Types of domains:

• Short domains (1L to 4L) will have value. People like it short. And if not pronounceable some can be used as acronyms.
• .com will always be the preferred and final destination for a business. They may start with other extensions (register free most often) and try to migrate to .com
• Generic product / service domains can be used for product information, blogs, lead generation and redirection. They will have value as well
• Brandables is unpredictable, often meaningless and since there is no correct spelling.. sometimes business just hand-register an alternate spelling. ex: if zocis.com costs $1000 and zokis.com is free, they may tend to choose free alternative along the lines. Short brandables 4L to 6L can still get value if they sound really good and have some nice root words / logic
• I really dont know many users using numeric.com other than china. My opinion is a bubble. Yes some short ones will make good $. But i dont see most sell to end-users.
• Likewise i dont see much good value on most new extensions. .com is end-user favorite. always will be.

All this said, domaining has many surprises and somethings cant be predicted. No foolproof equation on what a domain value exactly is. You can invest wisely - 1) Get domains cheap and flip to other investors 2) Get quality names and find end-users. Domaining will exist as long as internet does.

Happy Domaining
Leopard

A well explained insight mate

 

[Rajnish Prasad]

Just some insights from my experience

Business naming:
It works in 3 to 4 phases.
1. Usually founders hand regged domains initially. - $10
2. During development and closer to launch, they work on marketing and think of names seriously.. consult with friends / professionals, run contests or try buying. Usually the budget is around $500 to $2000. Extensions mostly include .com and sometimes .io
3. If they get well-funded they look out for premium names and try to re-brand if they can. This is where u can expect $$$$$ 5 figure sales
4. Sometimes some businesses want a category-killer generic .com. This is when 6 figure sales come in. Usually this is a running and successful business. or they got some seriously heavy funding.

Takeaway : Domains are valuable at various phases of a business life-cycle. Businesses upgrade and Pricing varies on requirements. So good domains will always be sought after.

Purpose of domains:
Domains are sought for company naming, marketing+advertising campaigns, social media stuff or sometimes just to redirect and keep a competitive advantage with generic terms. So pricing depends on how much valuable it is and why they want to use it + budget.

Types of domains:

• Short domains (1L to 4L) will have value. People like it short. And if not pronounceable some can be used as acronyms.
• .com will always be the preferred and final destination for a business. They may start with other extensions (register free most often) and try to migrate to .com
• Generic product / service domains can be used for product information, blogs, lead generation and redirection. They will have value as well
• Brandables is unpredictable, often meaningless and since there is no correct spelling.. sometimes business just hand-register an alternate spelling. ex: if zocis.com costs $1000 and zokis.com is free, they may tend to choose free alternative along the lines. Short brandables 4L to 6L can still get value if they sound really good and have some nice root words / logic
• I really dont know many users using numeric.com other than china. My opinion is a bubble. Yes some short ones will make good $. But i dont see most sell to end-users.
• Likewise i dont see much good value on most new extensions. .com is end-user favorite. always will be.

All this said, domaining has many surprises and somethings cant be predicted. No foolproof equation on what a domain value exactly is. You can invest wisely - 1) Get domains cheap and flip to other investors 2) Get quality names and find end-users. Domaining will exist as long as internet does.

Happy Domaining
Leopard

Well said

Lets celebrate and Make any day of the year a Domaining Day..

 

[cocaseco]

I would add, businesses need more than just their primary domain. A wise business owner will hold a portfolio of names. Some for future projects, some for defensive reasons. I wrote a long article (rant) about why they need more than one name last year on LinkedIn. You can read it here.

 

[Kate]

So in my view does this domain think will lose its value because of over pricing and lake of proper distribution?

Any thoughts on the matter are most welcome.

I don't think so.

First of all, end users still have plenty of options. Nobody likes to pay more than regfee for a domain name. The options are as usual: use another extension, use one's own ccTLD, make up a longer domain, be creative, set up for a brandable domain, add one 'random' letter or two, make up your own acronyms/abbreviations...

99% of all registered domains will never sell. The demand is always going to concentrate on a tiny portion of the volume, that is the quality domain names.

Today there are 120+ million domains registered just in .com. That means the pressure on the supply of available domains is quite extraordinary and it's become harder to find a quality domain. So if you want a quality domain, it's more difficult to avoid the aftermarket This is good news for us, the increasing demand for good names presents more opportunities - for those who hold quality inventory.

Overpricing is relative, because very few domains are selling for 6 figures. Low 4 figures is more like the norm. But the fact that so many domain holders price their names unrealistically is obviously driving end users to explore regfee options. Thus they often settle for bad domains but they still have a domain...

 

[frank-germany]

Domain is meant to be developed website right? .

Domains can be used for multiple purposes:

1) website
2) email
3) ftp
4) redirection of traffic
5) parking
6) traffic monetisation


or simply you want to own it
or you want to block it - in order for somebody else can't get it

 

[HUKU]

But the fact that so many domain holders price their names unrealistically is obviously driving end users to explore regfee options. Thus they often settle for bad domains but they still have a domain...

So true and that applies just as well to small businesses as to large and very well capitalized businesses. There's is never a need to purchase a domain name from another party when you can just register a name.

Now this may be a terrible example, but look at Airbnb.com - this domain has been ringing in my mind for weeks because I still cannot understand the connection between Airbnb and the product. I can only presume that this entity (now multi-billion dollar valued company) registered the domain rather than purchasing a domain from a third party. If they purchased it from a third party...... I just don't know why, its a horrible domain name and quite easy to mis type.

But to the public at large, no-one gives it a second thought.... they love the domain and they accept it.

Uber.com is not so bad but since they went with a 4L, they could just as easily have purchased Ride.com and it would have explained the product more easily to potential customers. When you're a big business with massive volume, I think you can justify a large purchase of a good resale domain name far more easily than if you're small but there are still those who won't bother.