news Rick Schwartz: The demand by END USERS in 2017 is not what it was years ago #Domains

[Arca]

I've been thinking of this tweet Rick Schwartz made a few days ago.

While end user demand is decreasing, according to Rick, reseller prices at platforms like GoDaddy, NameJet and DropCatch are certainly not.

But is end-user demand actually decreasing? Do you agree with Rick's observation? Is user demand for .COM's at a low point in 2017?

 

[pokainc]

I've seen end-user demand increase for the brandable domains that I own.
I have more offers than before and average sales prices are better than before... but then again, he's dealing with the super upper stratosphere of the domain world

 

[.NJ]

I've seen end-user demand increase for the brandable domains that I own.
I have more offers than before and average sales prices are better than before... but then again, he's dealing with the super upper stratosphere of the domain world

Agree.

The old school method of branding with exact match domains is fading.

The new trend is branding. And from my experience endusers are now buying brandables, but only very high quality ones. Good pronounceable 4L.coms ect....

There is still a good market for exact match, but you have to have the right inventory to make the sales these days.

 

[168]

Keep in mind the DIFFERENCE BETWEEN OPINION AND FACT.
Kauffman.org
The Startup Activity Index rose to 0.38 in 2016- continuing an upward trend started in 2015. After falling with the recession and reaching its lowest point in the last twenty years just two years ago, startup activity rebounded, going up for the second year in a row.
For the first time since the recovery got underway, Main Street entrepreneurship activity is at higher levels in 2016 than those recorded before the onset of the Great Recession. This increase was primarily driven by a jump in the business survival rates, which reached a three-decade high of 48.7 percent. This means almost half of new businesses are making it to their fifth year of operation.
End users in the west are using multiple domains, and global startups are on the rise. Think global not local.
Seriously, the sky is not falling.
What it was years ago was internet startup activity that no reasonable business person would expect that kind of high growth activity to continue without pause.
Happy Hunting

 

[LarryDomain]

I don't trust him

 

[urlurl]

I'm up in February than i was same time last year. I think it may be a shift in what endusers want.

Traffic is driven by content (among other things) and not just the name - so i would assume they (endusers) have shifted from the old school thinking of having a type-in specific name to a more creative and cost effective name.

 

[Wannabean]

It's a very mystical utterance. It's hard to know whether he's talking from personal experience or empirically. One would guess from personal experience, so not really sure how universally this can be applied.

 

[DNWon]

Amazon (for example) just invested in 52 new TLD's, if anyone thinks they did that, just for tax purposes, your sadly mistaken. The bottom line is this...with all of the new gTLD's and the abundance of short memorable domain names in new extension's, to think that .COM is not going to take a sales hit, both in the numbers of domains sold on the secondary market and their overall sales prices is really not paying attention to the overall market and the market trends that are developing. There are only so many end users at any one time, although more will enter the market each day. eCommerce is growing by leaps and bounds, but so has the choices provided to end users by the introduction of a ludicrous amount of new TLD's at one time! So it's only economic law of supply and demand that maybe has some heavy .com holders feeling the pinch of less demand and lower resale prices at this time. It's interesting times in this business and I feel you're going to see many new trends develop, both bad and good, in 2017!

 

[168]

New regs for all tlds average 20m+ in the last 2 years up from 18m
20+m buyers is what matters. Who cares what they do with them
Happy Hunting

 

[Domainscoop.com]

Domainers who own names and selling in x,xxx to xx,xxx names are not as much effected. The ones who are affected by it are the ones, who used to sell their domains for millions, and now finding out that they can only sell for low xxx,xxx. They are not getting 1 or 2 percent royalties on the top of it. So what one would say who used to sell for millions, does not simply apply all across. Atleast thats just my 2 cents

 

[urlurl]

Domainers who own names and selling in x,xxx to xx,xxx names are not as much effected. The ones who are affected by it are the ones, who used to sell their domains for millions, and now finding out that they can only sell for low xxx,xxx. They are not getting 1 or 2 percent royalties on the top of it. So what one would say who used to sell for millions, does not simply apply all across. Atleast thats just my 2 cents

agreed, as an example, take candy . com - it sold for $3mil in 2009. great name and great for traffic (at that time)

if you google the word 'candy' now, what page does it show for you?

I stopped on page 5 and still no candy . com.

2017 do you think the same name would have sold for that much? maybe, maybe not, maybe more. But if it were me, i would have bought a kick ass brandable for $xxx,xxxx and invest the rest into the company.

 

[joro001]

I agree with many of the overall opinions above.

Assuming he is speaking about end user prices/demand I must say I agree with him for the lower-middle end of the market which demand has tanked for. High quality .coms, short .coms, great brandables and other extensions for that matter including great new gtld's that span the left and right of the dot perfectly like bitcoin.casino that just sold huge are in my opinion going up not down.

Domainer demand for names have grown in a big way in the last year or so at godaddy, namejet etc. and I don't think that is in line with end user demand, the market has overheated majorly and is ripe for a correction at some point IMO, but I don't think it will happen soon.

 

[dordomai]

agreed, as an example, take candy . com - it sold for $3mil in 2009. great name and great for traffic (at that time)

if you google the word 'candy' now, what page does it show for you?

I stopped on page 5 and still no candy . com.

they got a google penalty.. nothing to do with the domain.

 

[infosec3]

Domainers who own names and selling in x,xxx to xx,xxx names are not as much effected. The ones who are affected by it are the ones, who used to sell their domains for millions, and now finding out that they can only sell for low xxx,xxx. They are not getting 1 or 2 percent royalties on the top of it. So what one would say who used to sell for millions, does not simply apply all across. Atleast thats just my 2 cents

I visited this thread with the intention of saying something of this nature. I don't need to, because you have said it. I totally agree.

 

[Domainscoop.com]

agreed, as an example, take candy . com - it sold for $3mil in 2009. great name and great for traffic (at that time)

if you google the word 'candy' now, what page does it show for you?

I stopped on page 5 and still no candy . com.

2017 do you think the same name would have sold for that much? maybe, maybe not, maybe more. But if it were me, i would have bought a kick ass brandable for $xxx,xxxx and invest the rest into the company.

Actually never understood the idea of company already decided to give its royalties profits to someone who they have already paid millions, thats just a bad ceo move. There were plenty of options to pick from for that type of names or better for that price.

Btw, candy.com lost its ranking about before one years they bought the name. Probably wont happen in 2017. MOBILE MARKET is expanding and will be the dominant market in few more years. People buying their products straight from amazon for example, instead of from the individual websites, because they have more options to pick from. My prediction is, on the web, amazon has the dominant market, and will skyrocked in few more (amazon stock).

But small time domainers will still be able to fulfill their hobbies, if they are smart enough, and not buy into crap from big time domainers. They are simply different than small domainers. Most of the conferences even are full of big friends circles who may have already know the reserve prices and hence the names barely sell for top dollar. They already know.

Anyhow, this was my last post, I rarely post in debate threads, but I have been here since 2006 in domaining, I know a thing or two, and have seen market going ups to downs, and downs to ups.

 

[dordomai]

Show attachment 51399
I've been thinking of this tweet Rick Schwartz made a few days ago.

While end user demand is decreasing, according to Rick, reseller prices at platforms like GoDaddy, NameJet and DropCatch are certainly not.

But is end-user demand actually decreasing? Do you agree with Rick's observation? Is user demand for .COM's at a low point in 2017?

not sure but Rick stated he is buying more domains than at any point in the last decade.. perhaps he believes the market will go up?

Money pouring into system. First time in years. Risk taking back. Domains will reap rewards. Gold rush resumes 4 domains. #patience #Domains

There's a glut & all suffer even .com. .Com prices have stalled. That is temporary. Change in demand. Meaningless domains are done. #domains

Bought more domains last 12 months than anytime in a decade. Underwater domain investors FORCED to sell cheap. #Domains #domainsforsale

 

[urlurl]

he's smart; 'buy when every one is selling and sell when everyone is buying'

 

[urlurl]

they got a google penalty.. nothing to do with the domain.

They are still in the penalty box, wow that really sucks for them, i thought since 2013 they would have fixed that by now.

Pick your SEO providers wisely!

 

[MapleDots]

I think growth will be in regional domains like .ca (proven fact) and .uk .mx .de etc.

I own a few other companies and do business exclusively in Canada, I did not even register a .com for them.

PS. I would never register a domain like myname.shop or something with those type of extensions. I want my customers to know where I am from and where they are doing business.

In the end the .coms are becoming unreachable but the regional domains are still affordable.

 

[urlurl]

makes sense to to get the regional extension for the place you would only do business in. the .ca is smart to keep it exclusive to canada - this gives the public confidence they are dealing with a canadian co.

.com is for companies that want to expand their business internationally

 

[ulasbbtr]

I think end user interest has been divided with introduction of a lot of new extension gtlds, cctlds, etc. For example, when they open Godaddy and search a domain name (which is of course unavailable), in the end they may see lots of alternatives under other extensions. Let's say 1 percent prefers dotx, 1 percent prefers doty and as a result some of the potential buyers lost for .com owners. Since, they are also divided among high number of other extensions, they also do not create a popularity for a particular extension. It is a lose-lose situation for all parties on the selling side.

 

[DomainVP]

End user demand has declined. There becomes a point of maximum saturation when everyone who needs a domain has a domain.

There are more domains than there are viable businesses that can pay a 'domainers price' for something like a domain name.

Think why "Chips" crashed. The end user demand wasn't there to support the price. So be careful what you are buying, because there may not ever be an end user that can pay your expected price.

 

[80-20]

With so many guesses here, here is mine:
Rick has sold his best domains "years ago."
With the quality of his holdings decreasing, no wonder the demand for his domains in 2017 is not where it was before...

 

[campout]

I think he's just making this up. There's no reason that end-user demand would be going down at this point in the internet.

 

[urlurl]

maybe just demand for his portfolio - wouldn't say its anyway indicative of the market as a whole