This is of course just an opinion but since I’ve been following the reseller market (or the domainer to domainer market, as it can also be called) for many years, I’m in a reasonably good position to share my 2 cents and start the year with an assessment.
As everyone knows, reseller market domain values (just like stocks and a lot of other assets) have been affected by the global financial crisis in a negative manner.
How is the reseller market today compared to the period just after the crisis?
Well, there has been an improvement for sure but we have to understand that comparing the evolution of the domainer to domainer market to the evolution of the stock market wouldn’t be fair.
Central banking policies have helped stocks quite a bit, whereas the reseller market hasn’t received such a boost. Therefore, it should come as no surprise that the reseller market hasn’t picked up as quickly as the stock market.
On the stock market, we had new highs and the same thing cannot be said about the reseller market. At this point, reseller market values aren’t at pre-crisis levels and in my opinion, domains are currently undervalued.
Some types of domains (for example NNN dot coms) have done better than others but all in all, we can definitely conclude that the reseller market recovery hasn’t been as impressive as the stock market recovery. Is this a good or a bad thing? Hard to say.
It ultimately depends on which side of the fence you’re on. As a seller, I’m sure you would have preferred a faster pace. As a buyer though, the fact that domains are still ridiculously undervalued (at least in my opinion) is a good thing.
As a conclusion: there has been a recovery for sure, better for some types of domains and not as good for others but unlike the stock market for example, we aren’t at pre-crisis levels yet.
How you interpret this is entirely up to you. I for one see this as an advantage because I’m bullish on domains and consider them undervalued at this point. If you’re bearish on domains, I’m sure you can interpret the current state of the reseller market differently.
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