State of the Domain Industry!

[TOXX]

Ok, everywhere I look it seems like people are saying that the domain industry is going through "rough times"...is it REALLY that bad, or is this just propaganda?
...
Did the worst already pass?

 

[maxeaus]

The domain industry is inexplicably linked to the wider economy.

Advertising revenue is down, PPC is down, the US$ is up, these 3 factors alone have conspired to reverse domains previous bouyant prices.

When 1 of more of these factors turn around you can expect a rapid price reversal. There has never been a better time to buy in my opinion.

This will take time, but it will happen.

 

[TOXX]

The domain industry is inexplicably linked to the wider economy.

Advertising revenue is down, PPC is down, the US$ is up, these 3 factors alone have conspired to reverse domains previous bouyant prices.

When 1 of more of these factors turn around you can expect a rapid price reversal. There has never been a better time to buy in my opinion.

This will take time, but it will happen.

So basically the rich get richer and the poor get poorer?

 

[-REECE-]

I'd say the rich get richer and the poor make themselves poorer

So basically the rich get richer and the poor get poorer?

 

[Spade]

Perhaps in times like this:

The Rich Get Poorer
The Poor get Pooriest

Anyone get my logic?

 

[Seabass]

I don't know what you guys are seeing, but I have noticed some funky, funky stats on certain days that don't match up with anything I have seen since I began parking in 2001.

Days where CTR drops 20% from the day before, days where uniques just fall through the floor, etc.... Then there are other days where eveything looks fine.

I have a large generic domain portfolio so it should not have fluctuations like this.

My opinion is that everything is sputtering right now just waiting to go into a free-fall..... if things don't balance out soon.

 

[Ben42]

The rich that bought 3 letter for 12-15k and now have trouble selling them for 8-10k are getting poorer.

Excellent time to buy these right now!

 

[hugegrowth]

Domains will hold their value better than other investments because the internet is still a growing industry, with more ad dollars moving here from tv, radio, newspapers, etc.

People might forgo a vacation, a shopping trip, buying a new car, eating out, but they won't give up their internet.

The lucky people are those with cash in hand now able to buy domains if they drop in price. It's like 2001 to 2003 all over again, but more competition.

Fortunes are made in times like this by people who can pick out the good from the bad amid the wreckage and hold until the economy bounces back.

 

[Michael]

Perhaps in times like this:

The Rich Get Poorer
The Poor get Pooriest

Anyone get my logic?

Haha, nice

 

[gazzip]

Perhaps in times like this:

The Rich Get Poorer
The Poor get Pooriest

Anyone get my logic?

I'd say the rich will get ALOT richer and the poor better start developing



.

The lucky people are those with cash in hand now able to buy domains if they drop in price. It's like 2001 to 2003 all over again, but more competition.

Fortunes are made in times like this by people who can pick out the good from the bad amid the wreckage and hold until the economy bounces back.

For sure


.

 

[r3born]

The rich always get richer, whatever happens to the economy.
The poor must adapt... and take chances.

Perhaps in times like this:

The Rich Get Poorer
The Poor get Pooriest

Anyone get my logic?

 

[Spade]

The rich always get richer, whatever happens to the economy.
The poor must adapt... and take chances.

Lots of rich people losing money over the past few weeks. Im not saying all of them, but some of them.

 

[Fundraiser]

Probably 75% or more of all names held in portfolios by domainers will never sell anyway and if you think about what it costs to renew those names each year, those real loses will remain fairly steady or at least predictable in any economy.

Of the remaining 25%, the majority of those if sold will be to other domainers and many of those sales are often manipulated by propaganda posts on the various domain forums. Sell when the propaganda is high, hold when it is low.

Now, for the 1% or 2% of domains sold to end users, the current economy will tie up funds weakening the market for awhile.

 

[Seabass]

Probably 75% or more of all names held in portfolios by domainers will never sell anyway and if you think about what it costs to renew those names each year, those real loses will remain fairly steady or at least predictable in any economy.

Of the remaining 25%, the majority of those if sold will be to other domainers and many of those sales are often manipulated by propaganda posts on the various domain forums. Sell when the propaganda is high, hold when it is low.

Now, for the 1% or 2% of domains sold to end users, the current economy will tie up funds weakening the market for awhile.

I couldn't agree with that more.

 

[Jasonn]

I'd say the rich get richer and the poor make themselves poorer

How so?

The only thing i've noticed for me is end user sales are down in comparison to the summer months. Oh and PPC is terrible. Some domains have went from 1.50-2.00 a click to 15 cents. Pathetic.

 

[Ben42]

Well the bottom line is consumer confidence.

If users are clicking on links and not buying anything then CPC is going to go way down. If it start taking 5x as many clicks to make a sale your going to want to pay 5x as less per click. When it happens over an entire industry the pay for clicks can drop substantially.

The internet would be the first to know which way an economy is going. I mean, come on, it's all automated. At a glance you can tell how many sales you've had each day as it's happening. If most industry has been having a downward trend we are obviously in a resession and means lower income for everyone. The guys selling the crap and the guys selling the links to the guys with parking pages who get paid by the guys selling the links.

 

[deleted984054565403]

If you're into reselling, now's the time to buy.

If you're into PPC or "mini sites", now's the time to develop and create actual, useful sites that make their own money.

The domaining industry is going to realize that lower-quality and "buyout"/pattern names are worthless to non-domainers. Domains that can actually be developed will hold stronger than a "triple premium LLLL .net" (which means nothing outside of the realm of domain name resellers -- "But it's an acronym!" won't hold water).

 

[ilcesco]

Honestly, I've seen an increase of PPC revenue in the last few weeks, and now that the USD value is a bit higher than usual so for me it's all good stuff. if 100$ were at 66€ 1 month ago, now 100$ give me 73€. who said the crisis are bad? (yes I know, it won't last long.. )

 

[Ben42]

(yes I know, it won't last long.. )

You never know ilcesco, I bet you have better info looking at your sites as to the state of the economy than a lot of economists. Don't discount the fact that things are looking up in your realm.

 

[TOXX]

Wow, some great replies...thanks...personally I also feel it hurting me the most with PPC rates dropping
But I really believe it's going to get better again.