i love the inevitability argument.... things have to go up. no mention of saturation, maturity and stabilization and even a fall. market is overcrowded with crap, bad practices and other garbage. most of domains these people are buying are junk and selling it back and forth, it's all about passing on the burden to the next guy until the music stops. happened with 4 letter .com garbage, and people seem to still think it's a valid argument. Sorry, I can't help stupid people not lose money if history and logic aren't accepted. What really drives domain name prices is end user demand, domainer demand just creates bubbles like we've seem across the market and specifically in these new *hot* sectors like 4L.com stuff. Unless there is real new money being pumped into the industry, going up in nowhere near inevitable. And let's be honest, the big guys making big bucks in domain industry are no longer reinvesting it at previous levels. There is a huge cash withdrawl from this business to other sectors like real estate and it's hurting domain prices quite substantially in the domainer to domainer level. So a few big guys pulling back has basically seen huge drops, so the belief that all these new entry level guys are going to force prices up is bogus.
good points and yeah the market is overcrowded with crap but people are not paying much for it anyway! People who generally buy crap are new to domain investing. I cant see 4L.coms falling to reg fee prices for example. Again the crap 4L.coms will profit from the good ones. A lot of the good 4L.coms have got and will get high offers which also drives the prices for the crap ones up to maybe 40-60 in a years time. Well you dont expect the domain prices just fly up, of course there will be some dips.
damn... well thought and probably the best thing I have read in quite some time. People I think get a little overzealous when it comes to the internet... thinking it's a "dream world" where common sense and reality doesn't apply. Like any business in life, these are indeed trends, everything has a natural cycle... and while I would like to invest in dn's, my only hesitation is when and where to begin.
Begin with a rational plan, a reasonable budget (something youd take to a casino and if it all disappeared you could say 'damn well at least that was fun'), and proactive mindset and you can actually do a bit. The domain flipping, unless youve got a real knack for cold calling buyers and convincing them to purchase your domains (and without infringing on trademarks) is not an easy thing to break into. I'd say most people who are just starting domaining missed the 'easy money' but that 'easy money' came with high risks as nobody really knew what value was or that they would even stick around. I'd say most successful new investors into domain names should focus on at least some form of development unless youve got some in (marketing skill, long list of contacts running businesses/entrepreneurs/etc, a huge amount of cash to start investing with to get actual premium domains, etc). Learn to create websites, SEO, that sorta stuff, add value to your names, you're not hand registering the super valuable stuff anymore. I know there are cases of it happening but it's winning the lottery, it's not investing when you're playing at that level. if you decide reselling is the way to go anyways, at least have a quick read: http://ohashi.info/article/introduction-domain-name-reselling
Thanks Kevin, I really appreciate your advice... this will help me make a decision. Personally, I may have to wait since I have about $xxx to my name haha... but I do have the marketing/communication skills to make some sales. I sent you a PM and look forward to your response Lastly, thanks for the link!
I think the meat of the market now is in the middle ground, good domains for sensible prices, the bulk of transactions are in this area. Ive always thought four letter.coms were overpriced and you wait for the bubble to burst but it just hasnt, and doesnt look like its coming any time soon. I had my chance and missed the boat. You can make money in domains if you shoot for good quality, and good quality doesnt necessarily mean thousands. Nothing wrong with buying a domain for $200 and selling for $500.
4 letter .com bubble didnt burst? base price went up to like 85 and dropped to like 20... that's a burst.
There is a profit in domain flipping. If you have a great idea for a domain name that goes perfectly with someone's idea for a website, it is obvious that profit can be made. So yes, it is possible, but it is getting harder as more domains are being taken.
Bang on! The problem is that many newbie domainers think that the best chances are there on TDNAM and SEDO. However, if you look at domain sales stats, you will see "Private Sale" coming up every so often... What's a private sale? Change your way of thinking and go out there - do some communication!