Recession

[ddadc]

I have read the reports by the industry "elite" as most people call them claiming that the domain industry is not in a recession, I HIGHLY disagree.

Sure ultra premium domains are always going to sale high, and premium names will occasionally sell for very high retail market value, but for the most part domains are on the downslide.

I have seen many recent domains of very good to high quality get put up for sale and not bring any offers, or get sold for way to low. Just look at the sales threads on any market forum and you will see that sales are not what they used to be in the good>mid>lower level domain markets.

I for one think we are in a recession and the rich will get richer (buying nice domains cheaply) and the poor will get poorer (not being able to sale good>mid>lower level domains or letting them expire).

So anyone that says we are not in a recession, I say bull honky.

 

[Seabass]

Without some great new domain income source, I guarantee you by the end of summer or this fall/winter there will be all kinds of kicking, screaming, crying, moaning on this board about the sad state of the economy and PPC domain income, but domain sales may be the saving grace if end users start coming around to make purchases.
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[ddadc]

End user sales will plummet on everything but premium domains. There will be so many dropped, giveaway, and neglected domains by then they won't need to spend money on names.

I attribute this to domainers themselves. Things they have done to hurt their own industry.

For example, I made a sedo offer the other day for a .info domain, nothing major just a small town in texas with a VERY small population. I offered a couple hundred for it and was countered with a FIRM $3,000.

That is exactly what drives endusers, developers, etc away. They offer a fair price and domainers want to get rich off every single domain they own. Just because a "similar" .com is priced at $3000 does not mean the .info is worth that. Just because XYZ, inc. paid $20 million dollars for XYZ.com does not mean ABQ.com is worth $20 million.

Unlike the real estate industry where actual comps are considered domainers base their retail prices on the absolutely highest thing they can find. If 500 similar domains have sold for $20 but one sold to a random end user for $1000, then domainers raise their prices and won't accept anything less than that $1000 cause after all if one domain sold for that much, surely theirs is worth more.

Sorry for the rant.

 

[goodkarmaco]

Very nice post about the economy past and present. I have to disagree though about one thing, cash is king.

Cash is king only if there is a shortage of it. The world will soon see itself papered with the stuff, and like the German Weimar republic it will be worthless, unless you have a wood stove. Then it may be cheaper to burn the American dollars for heat, than to purchase the fuel sold on the open market.

Cash is good if the money supply is managed well. If the fed uses smoke and mirrors to keep the system active such as massive bailouts in a free market (so the collapse is avoided for a short while) by creating monetary inflation, (not price inflation, but a over abundance of newly printed money) with no hard asset backing like they have been doing at an alarming rate and then proceed to tell the lemmings, ie stock market investors the economy is sound, most will have trust in the dollar.

Then prices start going up and up and up, until panic sets in. Yeah thats a good reason to own worthless U.S. dollars.

When it is all over, they buy nothing. Smart folks are buying up anything that can hold value. If you cannot afford to invest in hard assets, start buying extra things needed when prices spiral out of control. You will be glad you did. Look at it this way.. if you pay for goods now, you will buy them much cheaper. Or put another way pay less now, or fork over many times the dollars to buy the same item in the near future.

The fed is a master at deception. Today they are feeding the media tidbits of truth masked in lies. They can influence markets with simple propaganda.

A case in point, Berneke recently hired some young upstart economists to study bubbles, (they are a study untoo themselves) and this fed chairman can pick and choose what words will resonate with investors and then feed their comments to the masses. Most people buy it hook, line and sinker.

One of the persons who are doing this study is Mr Markus Brunnermeier. He is seen in a recent Wall St. Journal saying when a bubble like oil prices is growing it can be ridden to the top. Just know when to exit the bubble when it looks like investors are bailing out.

Yeah, that sounds like sound investment stragety.

The coming inflation will be (its here right now only it is masked) severe. The Fed reports inflation is only about 2%. The real truth is it is around 11% and growing as they quit factoring in food and fuel prices. Hello, anyone home?

This lady sees the value of her dollar, by burning thousands of them! http://washingtonindependent.com/view/us-economy-looks

Hello world, goodby dollar.