First of all, the two most important questions:
1) How do you think things will stand 5 years from now?
2) What about 25 years from now?
Three follow up questions to keep things organized:
3) Will there be another 2007/2008-ish boom 5 years from now?
4) How will new gTLDs affect domainers 5 and respectively 25 years from now?
5) How will domainers monetize their portfolios 2 and/or 25 years from now?
My answers:
1) If PPC (… or an alternative) will help domainers generate more revenue than in 2011, we might see the start of a 2007/2008-ish boom 5 years from now. If PPC earnings will continue to decrease, I still think we’ll see a decent overall domain price increase but I doubt prices would reach 2007/2008 levels.
2) In my opinion, the landscape will change quite a bit in 25 years. Everyone will understand that domains are here to stay and bigger players will start investing in portfolios for diversification purposes. It will be a LOT harder for beginners to make money.
3) Please re-read answer #1.
4) Some niche gTLDs will do ok, most of them will not be profitable for domain investors.
5) Parking (… in one form or another) will still be around 5 years from now. On the other hand, I think it will finally be possible to make money by leasing domains or through lucrative partnerships in 2036. Right now, making money through these let’s call them “monetization methods” is pretty complicated.
July 14th, 2011 at 7:46 pm
sold my entire portfolio a few years ago…might buy some again but only if I see signs of economic recovery
I didn’t sell because I was a bear,needed the money to invest in something else but not because I lacked faith in domains
July 14th, 2011 at 8:15 pm
Why aren’t more domainers leasing domains now? Two revenue streams just like in real estate, sales and rent?
July 14th, 2011 at 8:38 pm
by the time you see signs that there is a recovery it will be too late for you to re-enter without paying much higher prices. If you sold in 2009, which is a few years ago, then it looks like you sold at the bottom. Sell low…Buy High. Nice approach formerdomainer. Won’t be taking your advice…ever
July 30th, 2011 at 3:18 am
Thanks for the suggestions you have discussed here. Something important I would like to convey is that pc memory requirements generally go up along with other advancements in the know-how. For instance, as soon as new generations of processor chips are made in the market, there is usually a corresponding increase in the size demands of both computer memory as well as hard drive room. This is because the application operated by way of these processor chips will inevitably rise in power to use the new technology.