Prices dropping with Bad Economy?

[thejamez]

Have the prices of names in general started dropping with the bad economy?
Is it a good time to pick some up at bargain prices?
Or have you noticed little impact?

 

[wot]

They dropped!

Still a few bargains around, picked up quite few myself in my own niche.

Sentiment is improving in many countries which will eventually reflect back in confidence in domain names, simply the internet is now and the foreseeable future and domains are currently a large part of that..

This is nothing new, boom and bust repeating itself.

 

[tristanperry]

They've been falling for about a year now. The bottom may have been a couple of months back when LLL.com names were $2.5k/$3k (now $4k+)

 

[garptrader]

I have dropped my prices considerably in the last year and in recent weeks have noticed a sharp uptick in the number of offer page views of my names at SEDO - close to 45% with 100 domains having 18 or more views in the last month. But until those browsers start to buy I can't say the domain market has picked up. The likely scenario is most of those offer page views are just domainers who never buy a domain for more than $100.

 

[Domagon]

Prices have sharply dropped, especially for domainer targeted sales.

End-User buyers are shopping and still paying top-dollar, but as it's always been, even during the boom times, end-user sales are few and far between; very unpredictable in timing and what they're willing to pay, which, as the Sedo recently sold listings illustrates, can be over the map.

In regards to the U.S. economy, which is basically in a Depression (unemployment U6, which is more reflective of reality, is approaching 20%), bodes badly for many things, but not the internet - people at home seeking entertainment, save money, etc are going to turn to the internet first. Many end-users, especially those who've leased / owned commercial space, can easily justify spending many thousands for a good cyberlocation to build a business on the internet.

Ron

 

[Jaco]

The drops have been very, very juicy. They're one of the better barometers of the broader name market.
You're seeing a lot of real estate and car related drops that are extremely tasty.
Obviously, this is directly related to the massive culling of Realtors and car dealerships over the last year, but still. Nice to see for a buyer, bad for a seller. People are still asking XXXX on the aftermarket for the types of names that aren't even seeing competition on dro (not because the drops are loaded with XXXX names, but because people are idiots with their prices)

It's like anything other rising market where prices are abstract. For a time, people cling to their pricing delusions, but eventually, they decide they actually want to sell and start to adjust their prices downward. Most of them keep going until they sell, but a few hold out forever, unable to make the adjustments in their minds that their names weren't ever worth nearly what they had thought.

 

[DomainTalker]

There is more than one 'market' - and, what is 'value' in each of those 'markets' varies.


Domainer to domainer business is obviously at a lower price level. But, cash is cash - and, if you need cash, then, for many, its better to sell, than to hold a name for a maybe better price later. And, many of today's buyers will have to hold for the longer term, if they want to profit from these trades.


But, price is still ultimately value-related. Value in the eyes of the potential buyer, that is.

Value, in the eyes of a flipper/reseller, for example, is at a level at which they judge they can on-sell at a (perhaps modest) profit - most often to another reseller - in a reasonable timeframe. Today, that means offers from another domainer are likely to be lower.....If you are a buyer in this 'market', know your prices & potential, as at today.....If you are a seller - know the realistic price parameters.


If someone sees development potential in a name - and revenue prospects - they may pay you more for your name....If you are a buyer in this 'market', again, know the realistic potential for that project.


And, Rick Schwartz has also reminded us recently that a 'Candy .com' can command a $x,xxx,xxx figure, even in a severe downturn.....ie a name that someone sees as core to adding value to their business will command a solid price.


Overall, yes, there is less cash about for speculative bubble-bidding - so, inflated prices, and, the easy flip-profit is hard to come by.....And, there is less PPC revenue from parked domains & Adsense, too - so, recouping investment via passive income is harder, as well.


In short - know what 'market' you are in, for a given name - and, tailor your investment in domains to that (and, your financial capacity).


....But, in every downturn in history, there are those that laid the foundations for their future fortune, at the darkest-looking moments.

.

 

[Killthecat]

I really hope for the recovery of the economy as I am holding a bunch of LLLL.coms that had tremendously dropped in pricing since Nov 2007.

 

[DubDubDubDot]

One area I'm definitely feeling the hurt in is affiliate webmaster end users. That especially goes for people turning to the internet for supplemental income. Due to the nature of their situation, they don't want to pay a lot for domains.

 

[thejamez]

affiliate webmaster end users. That especially goes for people turning to the internet for supplemental income. Due to the nature of their situation, they don't want to pay a lot for domains.

I've been one of those for about 7 years.. and until a few days ago have never paid more than the reg fee for a domain