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discuss The Problem with Domains - they are not liquid in bad times

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Robert27

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By all accounts things are going to get worse economically so how can you get some money in. I am a newbie and know very little but from what I can see there are better things to invest in than Domains. I suppose it all comes down to quality and liquidity, a good domain will always sell. Where is the best place t sell a good one in bad times ?
Where are the investors now? I suspect on the side lines waiting to pick up the bargains so does that mean even if you say cut the prices by 50% you still wont get a buyer because they are waiting for all the bargains - crypto, shares real estate etc to present themselves and domains are way down the list.
 
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jhm

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Diversification is important for any investor. If you've got a nice pronounceable 4 letter or a nice one word COM, you could liquidate pretty fast, if you're willing to drop price enough, to wet the appetite of an investor. If your stuff is average, then naturally, not as easy. Plenty investors at NamePros / LinkedIn with the cash, more a question of how good your stuff is like I said
 
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akos

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I suppose it all comes down to quality and liquidity, a good domain will always sell.

Correct.
Good domains are always liquid, albeit at a steep discount from the retail price. But out of the over 300 million registered domains, my estimate is that only 0.5-1% have some sort of reasonably quantifiable wholesale value. The question is whether you own some in that basket or not.

Where is the best place t sell a good one in bad times ?

The obvious answer would be an auction venue which has high visibility.
 
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Robert27

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The obvious answer would be an auction venue which has high visibility.

Thank you for the reply - not really done the auctions - is there anyone in particular, and do they go in and out of favour ? I have seen specialist auctions that go around each year which I suppose do attract a lot of attention. Is there a website or a list showing the up and coming auctions all in one place perhaps ?
 
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Sure, but that illiquidity is what presents the opportunity.
It creates an arbitrage situation between reseller and end user pricing.

By definition, every domain is a one of a kind asset.
Good domains are liquid, just not for full retail value.

I would just suggest during good times, prepare for the bad times.
Renew your best domains ahead of times, maybe pick up some liquid assets.

I don't think you should ever have all your eggs in one basket.

Brad
 
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Robert27

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Sure, but that illiquidity is what presents the opportunity.
It creates an arbitrage situation between reseller and end user pricing.
I think the penny just dropped - bit slow these days - we are generally not selling to end users, which is what I concentrated on eg DEFI, but selling to other investors.

When I think of investors in this space I think of the Chinese market and suspect they are on stop. Having said that with all the printing of money that money has not disappeared, its still in the system.

Bye the way watched an excellent interview on Wealthion - Jim Rickards: A 2008 Style Liquidity Crisis - its a real eye opener.