Nobody is reselling?

[domainduck]

One would think that this thread, Domain Reselling, would be loaded with posts.

Are we fooling ourselves?


quack

 

[hhunterjr]

Not many people are selling domains right now due to the bad economy in the US and due to the fact they may have some duds.

Additionally, not every person who sells a domain and belongs to dnforum.com would post a thread in this section.

Not every person who owns domains and sells domains belongs to dnforum.com.

I think that the chance of getting a million dollar sale off a domain is like the chances of winning the PowerBall Lottery here in the states.

The chances of getting a 4, 5, or even 6 figure sale off of a good domain name will go up once the US economy picks up.


It could be that the selling prices in the future will be a nice average in between the millions that domain resellers were demanding in the late 90s and the rock bottom prices that we are seeing today.


I don't think that domain reselling is dead. I just think that we'll have to wait for the economy to pick up more.

With a good economy, you'll get new businesses forming and those new businesses will need a web presence. Also in a good economy - some existing businesses will want to buy generic domains to link to their company website (i.e. generic product domains that relate to the company's business).

Those are just my thoughts.

Those are just my thoughts.

 

[adoptabledomains]

I'd say there are five basic types of sales.

1. Lottery Ticket (a.k.a. Gold Rush), where the buyer just attempts to buy names in hopes that one will make them millions without doing any work.
2. Collector, where the buyer is purchasing for future developement for themselves or a long term intent to sell or use.
3. Wholesale, where the buyer purchases for near term resale
4. End User, where the buyer intends to develop in the short term.
5. Pie in the Sky, where the buyer has boatloads of money from the IPO, and thinks a domain name is the entire business plan.

The 5-7 figure sales where mostly from #5 which is likely gone forever. Due to this, the #1's have mostly left the market with empty wallets and lots of domains for #2 and #3 to get reasonable prices for. #4 will always be there, but the exponential growth of the internet is mostly past leaving this a more steady demand.

It was crazy when companies were paying millions for domains making everyone buy stupid names. A lot of the high prices were from big companies that made it to the internet world too late, forcing them to buy "their choice name" by extortion. The internet laws have mostly stopped this too, and are catching up in IP and trademark law giving them better choices than paying up.

Just because you can't take the $35 name from 3 years ago and sell it for $100k, doesn't mean that selling a $7 cost name for $500 is bad business. Very few other industries would call that bad business. It just doesn't get the press coverage that a million $ sale does.

I know many of the stable sellers here move many domains a week or month if they bought them right, price them right, and don't expect buyers to come begging. The gold rush may be over, but there is still a healthy market for domain names if you understand the gold rush is over and price them reasonably, and put forth some real sales effort.

 

[EM @MAJ.com]

I agree with hhunterjr.

I have approximately 80% registration from end-user from advertisement to different websites.

Domain name business still doing good, slowly but surely.

Regards,
tw

Originally posted by hhunterjr
Not many people are selling domains right now due to the bad economy in the US and due to the fact they may have some duds.

Additionally, not every person who sells a domain and belongs to dnforum.com would post a thread in this section.

Not every person who owns domains and sells domains belongs to dnforum.com.

I think that the chance of getting a million dollar sale off a domain is like the chances of winning the PowerBall Lottery here in the states.

The chances of getting a 4, 5, or even 6 figure sale off of a good domain name will go up once the US economy picks up.


It could be that the selling prices in the future will be a nice average in between the millions that domain resellers were demanding in the late 90s and the rock bottom prices that we are seeing today.


I don't think that domain reselling is dead. I just think that we'll have to wait for the economy to pick up more.

With a good economy, you'll get new businesses forming and those new businesses will need a web presence. Also in a good economy - some existing businesses will want to buy generic domains to link to their company website (i.e. generic product domains that relate to the company's business).

Those are just my thoughts.

Those are just my thoughts.

 

[RON2]

Mark, that is an excellent analysis of the current domain market. Your breakdown of the five sales types is right on. Thanks for the post.

 

[play]

Yes i do

well said

regards.

P L A Y

 

[hhunterjr]

Adoptable domains makes some good points.

But I would have to disagree that 5-6 figure sales are gone forever. Maybe alot of these sales are not occuring RIGHT NOW, but I think that the chances of getting higher sales prices will go up when the economy picks up.

I've had a 4 figure sale myself during this recession and I know of a person who recently had a 5 figure sale (eg. This person that I'm referring to sold their domain for $30,000.)

I think that the person who owns bio.us is definitely going to get a six figure sale some years down the line. Those are just my thoughts.

 

[adoptabledomains]

Originally posted by hhunterjr
But I would have to disagree that 5-6 figure sales are gone forever. Maybe alot of these sales are not occuring RIGHT NOW, but I think that the chances of getting higher sales prices will go up when the economy picks up....

I would also agree there will be a fair amount of low 5 figure sales, and a few 6 and maybe even some very rare 7 digit sales if it includes trademarks or some other goodwill to go with it. I think most of the higher sales are now low key and kept off-the-record when they do occur. I don't ever see the number of them we saw 2-4 years ago when the Internet was doubling each year.

Smarter search engines have somewhat lessened the need for short and single word domains as well. They are nice to have, but not quite the necessity they were seen to be a while back. You can do a lot of marketing for the price difference between a $200k domain and a $2k domain. With all the millions of names dropped, there are also more available choices than their were a couple years ago.

 

[mole]

The funny money of the temporal dotcom era is gone :dead:

 

[proproject]

I think the premium domain name value is mostly an image value, not a traffic value. If a site has traffic built up from serious marketing, that is a different story. Type-in traffic is hardly a factor in the value of a domain, but it might correlate well with the image factor.

 

[whitelion]

Its all in the quality of the name perhaps. The reason the markets going down. is the loans.com, business.com have all been sold. However if you have top names then i believe you can probably still sell. However i'm just guessing. i'm new to all this

 

[Columbia]

I agree with HunterJr