Internet domain name trading could be $4 billion industry by 2010

[Raider]

Look at what made Yahoo's homepage news today;

http://biz.yahoo.com/ap/070722/domain_name_dealing.html?.v=2&.pf=personal-finance

 

[Bill Roy]

IMHO this is a report (reported elsewhere as well) that seriously undervalues the industry. Is the $4 billion just in registration fees? What about all the sundry (and not so sundry) areas of the industry such as hosting, PPC (and varients), direct advertsiing, web design, even this forum, to mention a few!

How can domaining be considered in total isolation away from internet advertising? That is like saying the automobile industry consists solely of the engine and driving mechanisms of a car!

Let people know that radio and newspaper advertising are now falling behind internet advertising, this is the main driving force of the domain aftermarket and domain development. If this lot is added up we are talking not a nine figure industry but a ten figure industry, and come 3/4 years down the line the likelyhood is that the industry as a whole will be approaching 11 figures in annual turnover.

Just my 2 cents.

 

[petrosc]

Bill, in another thread you said that by 2010 you estimate domains to be a $100B / year industry.

Today it is a $2B industry - that including registrations, aftermarket sales and PPC earnings. So the $4B is not an underestimate IMO , it is a down to earth and realistic estimation. 100% increase in 3 years is a huge increase, but very likely. I don't think we can surpass the $4B mark in such a short period of time

 

[katherine]

I like this quote in particular:

"This industry is like the wild, wild West right now and people have no idea how fast it's growing," said Jerry Nolte, managing partner of Domainer's Magazine, a new trade publication devoted to this little-known world.

Clearly there are opportunities left... This is an industry where it is still possible to find a goldmine and thrive on. I am even relunctant to sell now

 

[Bill Roy]

This does not take into account the advertising occuring on the internet, the biggest slice of the market. This is reckoned generally to top $30 billion by 2011, now add to that such areas as the multi-billion dollar industry of website design, of hosting, and a myriad more aspects even down as I say to this forum and the new domainers magazine and suddenly the true size of the industry becomes apparent.

Most of us started of as pure domainers, buying and parking and/or selling domain names, but the industry is now starting to mature and no longer can domaining be considered as when we started out, now it includes building sites for advertising revenue and resale, and we therefore support a whole swathe of auxilary sub-industries. But at the heart of it is the advertising revenue being spent on the internet so how come such valuations of the industry ignor this?

 

[petrosc]

IMO from the entire online advertising industry it only makes sense to take into consideration just the passive income, which is parking PPC. It's revenue generated mainly from direct navigation, which is the main engine powering this industry. You can't consider revenue generated from websites as it involves active marketing. Most websites would generate 0 revenue from passive(type-in) traffic without marketing

 

[Bill Roy]

Then we should agree to disagree on how to evaluate the value of the industry.

 

[petrosc]

i agree to that :lol:

 

[Theo]

That was a wonderfully written PR masquaraded as a piece of news.

 

[PRED]

That was a wonderfully written PR masquaraded as a piece of news.

i blame the .mobi consortium. they're behind everything you know? :spy:
LOL :smilewinkgrin:

 

[katherine]

Supercalifragilisticexpealidocious.mobi is available (.com taken)

 

[Theo]

AP News = anyone can be part of the global RSS feed for one day.

 

[PRED]

Supercalifragilisticexpealidocious.mobi is available (.com taken)

Nice arse Kate :smilewinkgrin:
http://www.dnforum.com/member.php?u=63835 :-#:

 

[Rarethings]

lol. 4B? Maybe the entire industry including all reigstrations. And even then 4B is overvalued, in my opinion.

 

[DNWizardX9]

billbo why would you include webdesign and advertising in "domain name trading" category

 

[DomainMagnate]

nice article
I think it's gonna be a little more by 2010, 3 years is a lot in domain years

um.. megayachts.com worth $150k?

 

[Bill Roy]

DNW, the simple reason is that many domains are developed, and I no longer consider domaining as not just the selling or reselling of domains as 'domaining'! It seems to me that domaining has matured in character to include all aspects of monetizing domains right up to and including developing domains for advertising revenue. Thus by the same reasoning all subsiduary activities are now part of the domaining industry including this forum.

I have another thread on this subject in particular, it is something I have thought about overnight. It is the maturing of the industry, those who feel that the website design for monetization and/or advertising revenue are not part of domaining are perfectly right, it is purely a personal viewpoint, but how many on this forum now just buy and sell domains solely? I would suggest not many, and of those that do most will be fairly new to the industry.

 

[michaelg314]

Invest in Tucows (TCX). Those are my thoughts. And, yes, I am certainly a shareholder in this company.


http://finance.yahoo.com/q?s=TCX

 

[Raider]

nice article
I think it's gonna be a little more by 2010, 3 years is a lot in domain years

At the rate domains have been selling for this year, I have to agree...As the .com market dries up for good generics, prices are going to sky rocket.