Domaining is a term coined from many people in the business and some may not know what the term means. Domaining is taking a domain and either developing for flipping to other domainers or end users e.g. companies etc. Well with the economy around the world feeling the grind the true question is simple is Domaining for profits still viable?
Well if your an investor from prior to 2000 then your answer is probably going to be yes. Most people I speak with on a daily basis say it’s business as usual in the domaining sector. Now myself I find that buyers are tight wallet for a good reason with this current recession people are watching there money and where they spend it etc. I feel the time when people spent money on a whim is about to come to an end.
Now most may disagree with my last statement and that may be true under 1 circumstance. There are people finding out about purchasing domains for profits daily and with these new members comes fresh money. So in essence the money hasn’t stopped but once new members stop joining it may cause a financial strain on the business as a whole. Now this is a rather extreme situation but at some point even the hottest sectors tend to cool down and inevitably slow down.
My personal thoughts on the current situation is simple. If you have great keyword domains or nicely developed domains with traffic you should be able to weather the storm. People who buy on impulse and not with research will find themselves out in the cold with no buyers except for newcomers. The roller coaster effect has reached the top and now the only direction is down from here.
Simply put I feel in the next 8-16 months we are going to see a lot of great domains drop out of peoples portfolios. The time where you hold 2000 domains waiting for end users to sell to is about to end. Trimming the fat of your portfolio and holding only the most premium of names is about to begin. Buyers are getting smarter and more intuitive on a daily basis.
The current trend has moved away from .com is the only extension to be profitable towards the fact that your own country extension is just as good if not better. I feel in the coming years we will see .com lose a lot of traction as cctld’s come out of infancy and begin to gain more traction. So the question still remains is domaining for profits still viable?
I think for the most part the answer is yes and to a certain extent will always be profitable. The internet is still not totally mainstream there are millions of people yet to log online and enjoy the internet as it was designed. The real answer is profit will come to those who are creative and do there research and find bargains during this recession period.
In conclusion I hope you have read the latest news as there have been 2 highlight names sold as of the last 2 weeks which will bring in a new wave of investors in the near future.
Toys.com – Sold for $5.1 Million to Toy’s R Us
Candy.com – Sold for $3 million +Revenue Share
The future looks different but not dark for the people in the domain industry. Keep your heads up and eyes wide open as you’ll need a clear mind and good eyesight to get through this recession without a scratch.
Cliche Domains LLC