Comments on: Majority of Domain Names are Purchased as Investments

By: Andrew

Andrew — Wed, 11 Jul 2007 13:57:13 +0000

“Considering the high commisions these seller reps want we should get more effort to target real end users.”

I think we need to pay 20%+ for active marketing. 10% is only good enough to list a domain on a web site.

By: Adam K

Adam K — Wed, 11 Jul 2007 03:54:10 +0000

Interesting comentary. I have both websites and parked domain names. The real value in a name should be based on the potential of the business. I should a domain back in 2004 for 5 figures called discountgolfsh***.com. It went to a business in the golf industry. I used to receive many inquires from business owners from 2000 to 2004 but the last few years I get offers from only domainers. The challenge for theses companies wanting to sell our names is the need to offer agressive marketing to specific target markets in the industry the generic domain name targets. Thats where the future is! Higher prices too. Considering the high commisions these seller reps want we should get more effort to target real end users.

By: Stephen Douglas

Stephen Douglas — Sun, 08 Jul 2007 08:23:59 +0000

Finally someone says something that makes sense. I’ve been warning that this industry’s like a big incestuous family. Are we selling to each other, each one trying to get the better deal? Domain values beyond their traffic revenue are overlooked and it’s always “What’s the stats” for domains that have clear brand power, but maybe not the stats at the moment.

The ultimate appraiser of our domains is the end user – the business community. If we don’t educate them on why they should buy domains, then eventually it will just be a merry-go-round of domain sales that eventually stalls, with great descriptive domains being sold for peanuts because they only make $20 a month in PPC. Tell the company that is selling galvanized steel tubing that owning the descriptive generic domain name of that product is an investment they will never lose money on.

By: This week’s domain news elsewhere » Domain Name News

This week’s domain news elsewhere » Domain Name News — Sun, 08 Jul 2007 00:45:30 +0000

[...] DomainNameWire: Majority of Domain Names are Purchased as Investments [...]

By: Andrew

Andrew — Fri, 06 Jul 2007 21:40:00 +0000

On the flip side, if you looked at BuyDomains’ data, you’d probably find most of the sales were to end uers. But for every sale to an end user, there are countless investor transactions as well.

By: D. Ocean

D. Ocean — Fri, 06 Jul 2007 19:48:24 +0000

Interesting study although I’m glad you suggest that the data might be skewed. Many end users or people starting websites in the small business sector are not purchasing names with huge price tags.

While a huge Vodka company can afford that and some other large firms can, there are tons and tons of smaller end users with shallower pockets. They are buying the names in the 2-10K range more likely. It would be interesting to see the same study conducted on names in a lower price range.

I would imagine this study parallels many other industries where the largest purchases are made by investors and not by end users. Think about the stock market. Big firms and professional investors are making the largest trades, not individuals.

By: Andrew

Andrew — Fri, 06 Jul 2007 15:40:58 +0000

“investors are much more likely to want the publicity as it publicly sets the benchmark for them to flip it”

I don’t know about that one, Gary. When I get a good deal on a domain I want to flip I make sure the price isn’t disclosed. I’ve had people negotiating with me that say “well you paid only $3,000 for the domain a year ago”…