What's happening in the domain industry?

[the_poet]

Three or four months ago it would have been inconceivable to see an all-premium non-pronounceable LLLL.com sell for less than $140-$150. Today we're facing situations in which all-premium perfectly pronounceable LLLL.com's don't exceed $100! This was what I saw today.

What's happening?

 

[Corey]

it's called a buyers market

Cheers
Corey

 

[mjbenterprises]

I simply think the economy is a lot worse than people realize....this is impacting every business across the board, not just domains...

 

[the_poet]

While I may agree on the global recession factor, to me it seems like we are in a moment that's even worse than when we were in the middle of recession.

 

[Corey]

the middle of the recession hasn't been reached yet

Cheers
Corey

 

[Domainace]

There's a lot of fear out there, and LLLLs are speculative (unless they happen to match an existing usage - The Engineering Society of Buffalo is not a great prospect).

There's no telling when the market will turn up again, so speculation is not very attractive. At least with a keyword domain, you can set up a mini site and make a little money off it.

I think this year will be another rough one, and prices will fall more on these types of names. There will be some good buying opportunities, but only if you can wait a while to see a return...imho.

For me, the question is: do I want to tie up my money in non-performing names in the hope of future returns? Considering the economy, I want my money working for me and available.

 

[John Baron]

i have to disagree , u cant reach that from one bad sale ( also that was a reserve price auction - which makes it much less attractive for buyers ) , i have actually saw some really good sales in the past few weeks , in the snapnames showcase that ended today had some really good numbers , few non premium LLL.com's sold in the $xx,xxx range , i do think 2010 will be a better year

 

[JayJay]

the middle of the recession hasn't been reached yet

Cheers
Corey

I agree.

 

[labrocca]

Not an attractive domain imho nor is the fact the auction having a reserve.

But overall it's a buyers market and the increased prices for pronouncable LLLL.com's has declined.

 

[owntype]

Because you are dealing in reseller market.

 

[DubDubDubDot]

Very questionable as to if Tesb is pronounceable. If it is, it sounds very odd.

 

[mwzd]

Yes it is a buyers market, though one sale doesn't really reflect on the whole market.

Also, llll.com is purely a domainers playground, so to speak. I've seen names sold on NP for $250 being flipped around in a couple of weeks for $2700. So... the sale price at a domainer venue is hardly reflective of the entire industry.

I think there is a cash crunch but sales in 2010, specially end user sales, have been a LOT better than in 2009 and will continue to get better as the business world gets more aware of the value of domains in general.

 

[wwwweb]

I have had situations where end users have wanted the domains, but have had cashflow problems, and have offered me goods that their companies sell for the domains, so cashflow and access to cash is still an issue, many companies are still in a bearish tone in regards to spending, and building cash reserves, or have had credit lines cut.

 

[Jake]

Because you are dealing in reseller market.

I have to agree.

Most LLLL.com's can only go so far.

The domains of true value are those that an end user would want, or even better, one you can develop by your self.

 

[fm1234]

Might also be a case of the flood of newcomers driven into the business by the site flipping/domaining craze that grabbed hold of Internet marketers in 2007-08 is finally washing back out to sea, chasing their rainbows in other sectors.


Frank

 

[bmugford]

My last few months have been really good selling domains to end users. I don't think we are out of the woods economically but it is nowhere near as bad as a year ago.

As far as TESB.com goes, yeah it is a quad but -

1.) It appears to have been a reserve price auction which turns off bidders
2.) Calling it pronounceable is generous.

Brad

 

[jagdotme]

I blame the new lay out that sedo have!!! In the old template they had it was easy to check the market and move on.... now its just longer.... If I knew about that auction I would of bid on it.

But guess its my bad!!!

Jag

 

[bmugford]

Yeah, the new layout is terrible. I still have issues finding different sections and the auction views are down dramatically across the board on SEDO.

Brad

I blame the new lay out that sedo have!!! In the old template they had it was easy to check the market and move on.... now its just longer.... If I knew about that auction I would of bid on it.

But guess its my bad!!!

Jag

 

[jagdotme]

Yeah, the new layout is terrible. I still have issues finding different sections and the auction views are down dramatically across the board on SEDO.

Brad

If I keep hearing and seeing sales like above I might have to email someone @sedo and ask them if they can consider changing back, my theory is...

appox 70% of most domain sales per year are done via sedo, as they have a good network buyer/sellers.

The old template was the most simplest navigation sites out there, I learnt so much on the old template, it was like a book never losing what page you was reading the night before. But NOW its !@£$%£@$!$!£!£ and I reckon most people land on there site, get confused and go to facebook or twittter...... another sale gone......

Jag

 

[WordWalker]

the middle of the recession hasn't been reached yet

Cheers
Corey

Recession? Maybe.

This LINK not for the mild of heart.