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- Apr 8, 2010
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Frank Schilling's latest blog entry has me thinking about the nature of the domain name industry: http://domainnamesales.com/sevenmile/
"Unfortunately I think prices will stay low for registrants until an organized system for marketing our product materializes. Everyone may need domain names (as surely as we all need water and oxygen), but there is no Nespresso or Apple store to market to the masses and fill the store during a recession. Some of the present situation results from the respective competitive stance we all find ourselves in..."
The absence of an organized marketing system led to the creation of a marketplace designed by domainers and name companies. While the primary market for original name registration is orderly, the aftermarket, where the real action is, is chaotic. The aftermarket is similar to any disorganized real world marketplace where hawkers are yelling out the quality of their goods with the hope that you will be enticed to buy at their price.
"All things considered, even the most recalcitrant pessimist would have to concede that our disorganized patchwork of an industry hasnât done too badly for itself."
The fact that the domain name aftermarket has thrived for so long on its own is really something to marvel. And it will continue to do so. But the masses haven't understood this yet. What will it take for them to get it? An organized aftermarketplace? Sedo, Afternic, Latona and the rest have tried to create a sense of order but by their own rules. Domainers create their own rules as resellers whether it pertains to a decision to list or pricing. An appraisal from one company may not be the same as an appraisal from a community of domainers. And who is to say who is wrong when there is no system in place?
Is an organized marketing system for aftermarket names possible? A system where every registrar and domainer plays by the same rules. Imagine that ALL dropped or deleted names are auctioned by ONE organization? If a domain drops, the registrar can forward the domain to the organization for a universal auction and is entitled to as much as 100% of the gains. This may lead to more competition but at least an auction winner can take the domain to whatever registrar he prefers without having to worry about a transfer process.
Organize the aftermarket or leave it as it is?
"Unfortunately I think prices will stay low for registrants until an organized system for marketing our product materializes. Everyone may need domain names (as surely as we all need water and oxygen), but there is no Nespresso or Apple store to market to the masses and fill the store during a recession. Some of the present situation results from the respective competitive stance we all find ourselves in..."
The absence of an organized marketing system led to the creation of a marketplace designed by domainers and name companies. While the primary market for original name registration is orderly, the aftermarket, where the real action is, is chaotic. The aftermarket is similar to any disorganized real world marketplace where hawkers are yelling out the quality of their goods with the hope that you will be enticed to buy at their price.
"All things considered, even the most recalcitrant pessimist would have to concede that our disorganized patchwork of an industry hasnât done too badly for itself."
The fact that the domain name aftermarket has thrived for so long on its own is really something to marvel. And it will continue to do so. But the masses haven't understood this yet. What will it take for them to get it? An organized aftermarketplace? Sedo, Afternic, Latona and the rest have tried to create a sense of order but by their own rules. Domainers create their own rules as resellers whether it pertains to a decision to list or pricing. An appraisal from one company may not be the same as an appraisal from a community of domainers. And who is to say who is wrong when there is no system in place?
Is an organized marketing system for aftermarket names possible? A system where every registrar and domainer plays by the same rules. Imagine that ALL dropped or deleted names are auctioned by ONE organization? If a domain drops, the registrar can forward the domain to the organization for a universal auction and is entitled to as much as 100% of the gains. This may lead to more competition but at least an auction winner can take the domain to whatever registrar he prefers without having to worry about a transfer process.
Organize the aftermarket or leave it as it is?
