the domain names they list are worth nothing. Any idiot can buy domains for $6.95 like what Dark Blue Sea is valuing at $1000 each.

Why are all the major investors getting out of this stock? because they own NO 1 word generic names. All their names are poor quality

[...] in to the domain after-market by one of the major companies in the space.  Also, check out DomainNameWire for some of the details and Andrew’s analysis on the [...]

It certainly does add meat to my assertions that buying domain names based on click earnings is a bad joke on domain name owners.

And almost as important is what you didn’t mention: they acquired their domain names directly from the registry or (taking a page from Michael Mann’s play book) captured the expiring domain names of their registrar customers.

The point being, if only one in four of THEIR domains will pay for itself, then you can imagine how hard it would be to ever make click profit from a domain name purchased in the aftermarket. Without end user sales, domain names start to look like FEMA trailers rotting in a lot somewhere.

While you may or may not eventually hit the lotto with a nonsense name that someone wants for a meaningless brand, I would limit those holding to 10 – 15% of a portfolio. The far better bet is a name that has a clear underlying business use.

From my present experience, I can tell you that the mega companies out there have (until recently) spent little or no time in thinking about (let alone building) a retail sales network. This is akin to GM building cars without setting up a dealership network.

I say this because, as you know, a dealership will always buy a good car. Maybe not at the price you’d like, but they will buy it because they know that – whether through a retail sale or a dealer auction – they can sell it.

This is exactly why I attempted to convince the AAAA to develop a domain name marketplace.

I can also tell you that in the past month every major player and mega company with a telephone or valid email address has been contacted regarding the domain name portfolio I have been trying to sell in order to fund an investor-focused registrar. And even though the per-domain cost of the portfolio has dropped to only $844, it still sits there – even though it included a country name (which sold last week for only $40K).

It was amazing that some of the folks contacted are STILL asking about click income. Others that know better recognized the handpicked nature of the portfolio, but seemed almost apologetic.

This tells me that (a) some of these companies still don’t get what’s happening, and; (b) others are just realizing the problem with not have a retail network.

I expect there is now a laser focus on developing retail sales networks, and I don’t mean the almost retarded number of auctions available today.

What I’m talking about is the development of “dealerships” that accept only the best domain names in the most common industries. I expect that should they materialize, they will require exclusive placement for reasonable periods (much like real estate brokers require a 6-month or one-year listings).

If this does occur, I will rejoice, as we will undoubtedly be one step closer to a central listing system like the MLS for real estate. And when domain name owners can list their domain name with any broker and know that any other broker can share in the commissions if they find a buyer, then we will have arrived.

[...] insight in to the domain after-market by one of the major companies in the space.  Also, check out DomainNameWire for some of the details and Andrew’s analysis on the [...]

Should they need to liquidate quickly the valuation would fall substantially and that’s the case for just about anybody’s portfolio.