When you put the current situation in perspective, the domain name industry is buzzing along nicely.
Let’s face it, 2008 wasn’t the best year in the domain industry. It certainly wasn’t as good as 2007 on a whole. Nor 2006.
But what about compared to 2004?
The reason we’re down in the dumps about domaining is that the industry was doing very, very well for a couple years, so domainers lost perspective.
Perspective is important. Today I filled up my gas tank for $2.00 a gallon. The guy next to me was complaining about how gas is up 30 cents or so. I recalled a picture text message from my little sister back when prices were dropping. It was of a station selling gas at the bargain basement price of $2.59 per gallon! She was so excited, having paid $4.00 a gallon just months earlier. And now someone’s complaining about $2.00 gas.
It’s all about perspective.
Looking back at DNJournal’s sale data from 2004 makes you realize that domain values are still above where they were just 5 years ago.
Reviewing the list, I see only a handful of domains that may not sell for as much at auction today. And that’s at auction, not to end users.
Looking at some of these seemed like “steals” if you reviewed them a couple years ago compared to the high auction prices of the day; now they just seem like good deals. Consider:
Cairo.com $35,001
CleanEnergy.com $31,950
AntiDepressants.com $30,000
Actor.com $30,000
HotelReservation.com $27,500
Band.com $26,000
38.com $20,000
So if the value of these domains is arguably higher now, why are we so negative? Well, look at these 2007 sales that may seem frothy now:
Dollars.com $650,00 (which recently sold for a lot less, so if this was the actual sales price then the buyer took a bath)
Greeting $350,000
Clock.com $175,000
Walkers.com $175,000
Lips.com $135,000
Note.com $115,000
Debit.com $100,000
And don’t forget what has happened to domain parking. It’s worse than a year or two ago, but much better than when I started in this business in the late 90s (i.e., $0).
Unless you bought everything at the top of the market, it’s not as dismal as it seems.
Acro says
For those of us that are now in the business for several years, the industry is buzzing along nicely. For the newcomers, the expectations are higher. Five years ago, there was one domain conference every year, now there are almost a dozen. The overall economy is erratic and does not provide with the necessary excitement that sustained us during the up-and-coming years of domaining. There are opportunities, for sure, there is inherent risk as a side-dish. I don’t view sales figures as a pure indicator of the industry’s health, I consider the overall volume and the monthly trends to be a more accurate gauge of the state of the economy.
RegFeeNames.com says
Andrew,
Well done for speaking up!
There has been so much Doom & Gloom recently but we are comaparing this too 08,07 & 06.
I didnt join the industry till the end of 06 but I cant believe how down everyone is!
Yes the world is screwed but Domains are still selling and selling strong in certain areas for CASH!
Remember alot of people cant afford to eat or pay there bills but there are still people out there buying domains at all levels!
Now is the opportunity for people to try and test different things – I for one stayed with parking my domains but have seen minisites on certain domains can help make more cash but I wouldnt have tried this unless parking revenues were down.
So everyone take a minute and plan what you are going to do in 09 – We are nearly in March!
09 is going to be tough but things shall get better!
Good Luck to everyone!
Regards,
Robbie
M. Menius says
I think the popularity of the internet infiltrating into every corner of society is establishing an important foundation for future domainer investment. Looking at domaining as a market that cycles, I think we are more in the bottom of a down swing at the moment.
Things may hover stale for a little while (actually not that bad), but just wait for the economy to find its legs again and you are going to see hoards of people and businesses coming online. Resurgence is ahead.
Internet usage is going to reach historic levels and domaining, by association, is going to become more mainstream and of interest to much larger numbers. The internet is the ultimate billboard and everyone will be lined up to stake out their corner. All the better for quality keyword domains.