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.

I can understand the concern.
For most TLDs, our prices simply follow the registry's structure, so there isn't much room for speculation on our side.
We put more effort into keeping things clear and being there when someone needs help with a transfer, DNS issue, or something unexpected.
That usually ends up being what people value most.

 

[nicenicnicenic is verified member.]

By the way, which domain extension are we talking about here?

 

[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.