Is domaining closer to real estate… or closer to gambling?

[nicenicnicenic is verified member.]

HI, there. I’ve been thinking about this a lot lately.

Do you think domaining works more like real estate, where research and patience pay off? Or does it feel more like gambling, where timing and luck matter more than skill?

Have you had moments that made you switch sides?

 

[cactusfly]

Question: Are your prices relying on speculation (and inflation) rather than fundamentals? REIT = Depends on market.

 

[nicenicnicenic is verified member.]

Question: Are your prices relying on speculation (and inflation) rather than fundamentals? REIT = Depends on market.

Yeah, pricing also reflects liquidity patterns in the aftermarket, not just speculation or inflation.

 

[LarryWentz]

Well I have quality domains that are up to 27 years old. I'm pretty sure I could sell a house faster than that. In face, the last condo listed for sale in our complex sold in 2 days after it was listed. So in the "speed of sale" matter comparing domains to real estate... there is no comparison. I also had a $100 and a $100,000 offer on the same domain in the same day - that doesn't happen in real estate. Buyers (including domainers) often are clueless on value of a domain name. There definitely is skill registering or buying quality domains that "eventually" can get sold when the right buyer comes along. You have to have patience for years and not weeks or months... even then potential buyers of a specific domain is a very small market.

There also is timing and luck if a quality domain drops (more true in the ole early days of domaining) or a domain goes on a fire sale and you were the first to see it. Gambling on TLDs and registering or buying domains also happened as we know. A few seemed to work out for "some" people but most didn't. Some worked initially and then petered out or completely tanked after a hopeful start.

 

[cactusfly]

-- No RoST (Return on stress taken)
-- To educate the buyer here is 95% of the pain.

 

[nicenicnicenic is verified member.]

-- No RoST (Return on stress taken)
-- To educate the buyer here is 95% of the pain.

Totally hear you, helping buyers understand the value behind a domain can take far more energy than the sale itself.
We deal with the same challenge on the registrar side too, so we try to reduce that “stress cost” wherever we can.
(sry, I must’ve been totally caffeinated-drunk earlier)

Well I have quality domains that are up to 27 years old. I'm pretty sure I could sell a house faster than that. In face, the last condo listed for sale in our complex sold in 2 days after it was listed. So in the "speed of sale" matter comparing domains to real estate... there is no comparison. I also had a $100 and a $100,000 offer on the same domain in the same day - that doesn't happen in real estate. Buyers (including domainers) often are clueless on value of a domain name. There definitely is skill registering or buying quality domains that "eventually" can get sold when the right buyer comes along. You have to have patience for years and not weeks or months... even then potential buyers of a specific domain is a very small market.

There also is timing and luck if a quality domain drops (more true in the ole early days of domaining) or a domain goes on a fire sale and you were the first to see it. Gambling on TLDs and registering or buying domains also happened as we know. A few seemed to work out for "some" people but most didn't. Some worked initially and then petered out or completely tanked after a hopeful start.

Exactly, and that unpredictability comes from domains trading in ultra-narrow, timing-driven buyer markets.

 

[LiamHenderson]

I got a clearer picture of what the project offers by going through armaniresidencesdubaipalm.com, especially the extras like business class flights and the premium car options that come with a purchase. It helped me gauge whether the pricing made sense for the level of luxury, views, and the Ando design style, so it might give you a better feel for whether it fits what you’re looking for too.

 

[nicenicnicenic is verified member.]

I’ve felt it’s a mix: I do research like I’m buying property, but I’ve also had random names sell out of nowhere that felt like pure luck.

I think you’re describing it pretty accurately. Both sides have a luck element, even in real estate.

And skill still matters, but it shows up more in what you choose to hold, not when it sells!