Categorized | Domaining Tips

Depressed Reseller Market = Contrarian Opportunity?

Posted on 03 December 2018 by Andrei

I believe most of us can agree on two aspects:

  1. Domain names as assets are here to stay and deserve a place in the investment ecosystem
  2. The reseller market (domainer to domainer sales) is in pretty bad shape

As you can see, #1 and #2 seem like ideal ingredients if you’re a contrarian, so if you’re someone who believes in betting against the proverbial herd.

However, I’d add another observation to the mix, #3 if you will:

Domain names are risk-on assets

… in other words, they’re assets that tend to do well when people are happy/optimistic and perform poorly otherwise. Unfortunately, the fact that the reseller market has seen better days despite other risk-on assets performing well over the past few years (stocks, for example) should be treated as a warning signal by contrarians.

What would happen if, hypothetically, a market crash would occur tomorrow?

More likely than not, domains would be on the losing end of the spectrum.

So… should contrarians back up the truck and buy investment grade domains on the reseller market now?

In my opinion no, not right now.

However, after we go through another financial crisis and it really seems that domains are dead for good… I for one will become greedy 🙂

Just my two cents, of course, but I for one believe there’s still more pain in store for the reseller market before it’s ready for a meaningful rebound. For that reason, it might be wise to keep some liquidity at hand and not rush in at this point. While nobody can predict the future and this is just an exercise in speculation, it’s the strategy I for one have chosen.

Good luck!

1 Comments For This Post

  1. Money Says:

    Not surprise at all. EKD don’t even rank anymore, making the unfair advantage for a website ranking non-existence especially for competitive keywords. However, I still see hope in brandable names. Don’t lose hope.

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