I Do NOT See Any Sales - Is Domain Market Down? Are We In A Recession Already?

[DNP]

Are domain names recession-proof but still have low liquidity? There are barely just a few sales here lately or everybody trading by PM/offline?

 

[Sonny Banks]

I see many sales...but not on DNF!
My question is why?

 

[Stian]

I think it's been way slow for the last 2 months and actually it finally seems like the market is on it's way up again. Domainers have been holding on to their money it seems and only purchased if they got a real bargain. I've made some of my largest purchases ever during these two last months, simply because I am so definite that the value of domain names will forever keep rising.

The only reason why the domain market (and all other financial markets) have been so slow lately is because of the media, which keeps scaring people from investing their money. :upset:

Edit: I almost forgot to mention all the threads the doomsayers on this forum posts: - "ICANN does this.." - "ICANN does that.." - ".COM is doomed.." - "Your generic domain will cost you $10mill USD!" - "Google owns your domains!" etc. These will obviously scare off some people as well.

 

[BLazeD]

Been slow for AGES

 

[Sonny Banks]

I think it's been way slow for the last 2 months and actually it finally seems like the market is on it's way up again. Domainers have been holding on to their money it seems and only purchased if they got a real bargain. I've made some of my largest purchases ever during these two last months, simply because I am so definite that the value of domain names will forever keep rising.

The only reason why the domain market (and all other financial markets) have been so slow lately is because of the media, which keeps scaring people from investing their money. :upset:

Edit: I almost forgot to mention all the threads the doomsayers on this forum posts: - "ICANN does this.." - "ICANN does that.." - ".COM is doomed.." - "Your generic domain will cost you $10mill USD!" - "Google owns your domains!" etc. These will obviously scare off some people as well.

Agree.
Some domainers just wait and study this crisis...but it's full of sales in these months.
Crisis or not Internet growing fast every day and people need to start new websites so they still buy domains.

 

[Bill Roy]

Few 'open' trades occur here on DNF, most are private, and I think that has changed little over my 3 years here. It is the nature of the business in the higher levels of the industry that requires privacy of sales and purchases, many of us know of sales that would easily make the top 10 of sales on DNJournal, but it is against the grain to start publicizing such deals.

Domains are not immune to the economic downturn, but as domains have traditionally been undervalued (this is especially true of non-industry members who make up the vast percentage of end-users) they therefore see little downward movement in the current financial situation. What is occuring though is that end-users willing or able to buy domains has reduced because of their ability to easily raise capital.

For those with ready available capital this is definately a time to buy domains that some domainers are now forced to sell, and it is true that some domainers are having to liquidate at least part of their portfolios to balance losses or commitments in other fields. This situation does result in some domains being traded at lower prices but this is not a direct result of the domain aftermarket but as said above of external commitments.

 

[fab]

DNF is slow on sales. I've pointed this out to them. They've mentioned that they are interested in changing the sales platform, and it will occur in the near future.

 

[Biggie]

Are domain names recession-proof but still have low liquidity? There are barely just a few sales here lately or everybody trading by PM/offline?

i think domain names do shield against recession, because you can liquidate them if you're willing to take less profit.

this of course, only applies to those names with intrinsic value.

you have more room to adjust prices, if you bought certains domains before market prices rose above what you originally paid.

imo, the aftermarket venues are experiencing the highest volume of sales, partly because of quality and potential of the domains dropping,and there is less risk of losing your money during transactions from scamming or the deal failing.

this has a big effect imo for a lot of end-users and domainers alike, when you can buy, bid or purchase with confidence that you will get the domain.

DNF is slow on sales. I've pointed this out to them. They've mentioned that they are interested in changing the sales platform, and it will occur in the near future.

hopefully a change in the platform will improve sales, but what's being offered for sale, along with the price will always determine volume.


still if a good name is posted here for decent price, it will get snapped up!

 

[Onward]

Sales have been slow for me...not lowball offers though (although the 1st six months of the year were the best six months ever for me sales wise) . I have just been holding out on selling at a discount because I do not need to.

I have been developing primarily and buying at a discount when I can.

 

[stewie]

DNF is slow on sales. I've pointed this out to them. They've mentioned that they are interested in changing the sales platform, and it will occur in the near future.

thanks for info...good to know

:yo:

 

[Stian]

DNF is slow on sales. I've pointed this out to them. They've mentioned that they are interested in changing the sales platform, and it will occur in the near future.

Honestly I believe this has nothing to do with DNF. I believe that the reason we don't see as many sales on DNF, is because there are more professional domainers here than on other forums. People here have higher quality names, which are more expensive and therefore takes longer time to sell. Also, professional domainers don't buy domains unless they can get a real bargain, while they don't sell unless they can get top dollar. I also agree with what you guys are saying; there are a lot of private transactions going on behind the scenes.

 

[David G]

There are 2 other popular forums/boards with even less sales than dnf. One of them in particular has extremely rare sales or even any offers.

I think it is not just the economy but even more importantly caused by:

Ongoing declining PPC & Adsense revenues and ability to monetize the name,

Ongoing registry and registrar renewal cost increases,

Fear of upcoming tiered pricing,

Too many for-sale,

Excessive number of auctions/venues causing market saturation and dilution,

Large players not buying names and portfolios vs the past.

 

[jasdon11]

I heard on the radio a couple of days ago, about the fall in retail store sales. At the end of the piece, they mentioned that online sales last month (or quarter?) internet sales rose by 16%.

If this trend continues, it would create a very positive image for the net, and large companies will need to refocus. With some good coverage and PR, domainers could be big winners while more traditional investments suffer.

 

[JMJ]

Sales have been off for quite a while. I've resorted to selling my keeper names at what I consider bargain prices that I've turned down offers on for years. Since I haven't really been buying in probably 6 months I haven't paid a whole lot of attention to the drops until recently. I'm seeing large portfolio owners shedding names like they are going out of style. I guess you can look at this like a good thing or a bad thing.

There is one thing that concerns me more than anything and this is the possibility of internet 2 being opened up to the public for free. The rumors are that most of the largest tech companies and ISPs are all for this happening and it being what your internet service providers switch to and you will only be allowed to create a sub-domain site off of a preferred site. IE Myspace . (Maybe that's why 2.0 is so hyped?) This will allow governments to easily not allow objectional content (censor).

 

[thevirtual]

I have seen a rise in sales lately followed by a decrease, between all domain forums. I have had a lot of backout offers and a lot of runaway buyers. Lowball offers have been on the rise.

 

[Theo]

I think I have an answer for you: more venues to buy and sell at.

While in my opinion DNForum is the top domainers' community, it's not the only place anymore where people can buy and sell domains at. There are far more auctioning places, new venues and more person-to-person exchanges than what was around in, say, 2005.

 

[David G]

...I'm seeing large portfolio owners shedding names like they are going out of style...

Personally I have either already dropped (waste of effort trying to sell them) or marked as non-renewal a good percenatge of my too way large portfolio (mostly the low/no traffic names), from 3,500 a year ago to just 2,100 on auto renew now.

 

[Gerry]

I see many sales...but not on DNF!
My question is why?

Too many people on this forum still think it is 2006 and pricing accordingly.

Expectations are still inflated and have not been adjusted to current market.

I am having no problem with sales.

Lowered my expectations? Not really. Just facing the harsh reality to reflect current market.

Yes, I can take 400 or 500 for a domain I hand regged 2 years ago. Or an LLLL.com.

But I also know what I have and the potential and traffic. I look to future trends and events - even on a global basis. I am not afraid of keywords and prime words in any language. I came to the realization many years ago that the internet does not belong to nor is comprised of solely English speakers.

Everyone is scouring for bargains. The domainers wanting a reseller price is not in my or our best interest. No way am I going to sell my LLL.us in bulk at $20 each. I have no problem sitting on these or even developing them for that kind of offer.

I do not expect the market to bounce back for 3 years or more. If I am wrong, all the better.

End users are still out there.

 

[fab]

I believe that the reason we don't see as many sales on DNF, is because there are more professional domainers here than on other forums. People here have higher quality names, which are more expensive and therefore takes longer time to sell.

What about Sedo & Afternic.

 

[Gerry]

What about Sedo & Afternic.

I have had 100% of auctions on Afternic not paid for. So I do not even bother with them.

Sedo was pathetic a couple of years ago.

So far this year, 100% payment. But, the year is not finished and I may have just jinxed myself as I have 2 large sales to be paid.

Still, encouraging.

I think we need a sub-formum of a "clearing out" section. I started a thread the other night where I basically posted names I am no longer interested in for one reason or another. Basically, Freebees. In this particular case, I had to charge a minimal fee to snatch it back out of the jaws of death. That fee was renewal and then domain immediately transfer to the new owner.

That is where the bulk deals need to be.