The end user market is chugging along in my opinion but the reseller market, in terms of activity, has seen better days and I’m sure most of you guys can confirm that.
Why does it need *our* help?
Why should domainers do more than just comment from the sidelines?
Well, first and foremost because it’s a matter that affects you.
Having an active reseller market means a lot from a liquidity perspective. Maybe your business model revolves exclusively around end user sales, nothing wrong with that. But even in that case, a solid reseller market helps you sleep better at night knowing that should you need some quick cash, you can liquidate some of your assets at a reasonable domainer to domainer price.
Ok but what should we do?
Simply put (and again, this is just my opinion), we should be willing to buy and sell more frequently.
This means that as sellers, it might be a good idea to accept prices even if we’re not thrilled with the return every now and then.
More volume, even if it’s occasionally at the expense of profit margins.
As buyers, we should be willing to re-invest more frequently and generally speaking, we should get back to work 🙂
Domaining is still in its infancy and without a highly liquid reseller market, we can’t even call it an industry.
All of you who are reading this are pioneers, all of you are involved in a business that didn’t even exist 20 years ago.
Therefore, comparisons with industries that are more liquid are pretty much irrelevant since those industries have been around a lot longer. I firmly believe that those who are reading this post are well-positioned to generate returns which far exceed those that could be generated in other industries but for this to happen, we all have to take our role exponentially more seriously.
May 13th, 2013 at 4:46 pm
We try to buy in the forums, but it’s quite time consuming finding the kind of names we are looking for.
A lot of the auction houses do the heavy lifting so good names are easier to find, which in turn attracts more interest so most venues get higher prices much of the time.
I think the general economy and ICANN’s on going new gTLD saga has taken a lot of the froth out the market especially for weaker names. The upside is you can buy some names cheaper 🙂 but the downside is sellers often don’t bother listing good names.
May 13th, 2013 at 5:57 pm
good article