Has the .uk market dropped on its arse

[Paullas]

simple question

do you think the bottom has fell out of the .uk market as in sales.

 

[domainseller200]

There will always be the money available for solid quality names, regardless of people's views of the "overall" market

 

[grantw]

Looking at the amount of people giving stuff away on here you'd think so but in my opinion it's stronger than ever, away from this dumping ground. I've never been busier and have been considering upping my prices this morning.

Whether the crazy sales methods on here will have an effect on .uk prices is another topic!!

Grant

 

[doodlebug]

I've seen 5k names sell for like 2k

 

[Sound]

Quality names are selling for higher amounts year on year, you can now plot the repeat sale of various domains and very rarely do they not resale for more.

If you look at Sedo and Domainlore solid domains are being sold for higher prices.

Some peoples domain policy is flawed if you sell off all your best names on Acorn for trade prices then you will be left with a very large stock of average domains that will not shift in volume.

 

[Brassneck]

I sell for a mix of reseller prices for average numbers and am doing at least as well compared to previous years for end-seller sales.

I am reassured that enough people dealing at the top end are achieving fantastic sales to believe that the market is fairly healthy. The only thing missing is the slow speed in which a lot of potential non-Acorn customers are being educated about domain names. It will happen one day however.

Stephen.

 

[grantw]

Some peoples domain policy is flawed if you sell off all your best names on Acorn for trade prices then you will be left with a very large stock of average domains that will not shift in volume.

Some people seem to be using Acorn as their main sales platform, quite why someone would choose to sell at the place they know they're going to get the least money possible is beyond me. It's like poundland round here at the moment.

Grant

 

[Edwin]

Some peoples domain policy is flawed if you sell off all your best names on Acorn for trade prices then you will be left with a very large stock of average domains that will not shift in volume.

I see a lot of this on here... people posting lists of 500 or 1,000 names and effectively giving away the half a dozen or so really attractive domains for peanuts. You can usually tell when that's the case, as there will be a rush of "SOLD"s in the first hour or so after the list has been posted and then an eternal silence from there on out.

If you have 10 great names and 490 average names, and you sell the great names to renew the average ones, you've got completely the wrong end of the stick!

 

[davedevelopment]

I'm guilty of selling all my best names at reseller prices, but I haven't got the wrong end of the stick, I just have very short term goals at the minute. Sales here come quickly and more importantly for me are processed quickly and professionally.

 

[Brassneck]

I'm guilty of selling all my best names at reseller prices, but I haven't got the wrong end of the stick, I just have very short term goals at the minute. Sales here come quickly and more importantly for me are processed quickly and professionally.

I do agree with Dave on this. I have plenty of quality names I am using or wouldn't sell at reseller prices, but the chance to earn a couple of thousand in reseller sales each month helps to pay the bills and provides cash to invest elsewhere. I would also rather pay off my mortgage than keep hundreds of domains which 1 or 2 may selll at reseller prices in the long term.

 

[rob]

It depends on what strategy you have and if the model works.

Just because a domain name is registered does not mean it has value. You just have to look at drop lists to see names that people thought were worth holding on to.

Its interesting to look back at the 'predictions' discussions on here about what people thought would happen over the years:

http://www.acorndomains.co.uk/general-board/3538-predictions-2006-a.html

http://www.acorndomains.co.uk/general-board/13234-predictions-2007-a.html

http://www.acorndomains.co.uk/general-board/28859-2008-prediction-thread.html

http://www.acorndomains.co.uk/general-board/44906-2009-predictions-thread.html

Overall I would say the market is not on its arse, or even close to being on its arse.

I think its changed, but this is the internet and if you are doing the exact same thing you were doing 2 years ago of course you will be suffering.

David Copperfield by Charles Dickens is worth opening, just to see the first page:

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.

 

[grantw]

I have plenty of quality names I am using or wouldn't sell at reseller prices, but the chance to earn a couple of thousand in reseller sales each month helps to pay the bills and provides cash to invest elsewhere. I would also rather pay off my mortgage than keep hundreds of domains which 1 or 2 may selll at reseller prices in the long term.

I understand this strategy.

What I don't get is people who catch a decent domain and stick it on acorn 2 minutes later for offers over £30 or whatever. Give the end users a chance first! It's the strangest business model I've seen, apart from Caz's catch script

Maybe there's just been an influx of people recently who just want to play around at it rather than make a business of it?? It's certainly different round here at the moment though.

Grant

 

[Lucky Luke]

It's certainly different round here at the moment though.

Grant

Hi Grant

Could you expand on this part of your post? Your insight into Acorn v. the rest of the UK market would be appreciated.

Thanks, Luke

 

[Edwin]

I'll repost something I wrote in another thread about 3 weeks ago because it's relevant here...

The issue as I see it is that so many names are on offer here (thousands and thousands a day) that only the very best bargains are worth going after.

Why would you go for a so-so name when there will be much better value names on offer tomorrow? And there's a lot of stuff in the "for sale" threads that's not even so-so quality!

Acorn is a completely different ecosystem from the end-user market, and there's no conceivable way to draw meaningful parallels between them.

On here, people are generally going for volume: lots of quick sales, often at very low markups of regfee. Brings liquidity, pays for renewals, but unlikely to present a big payoff unless you can do it thousands of times relatively quickly. It's also not very sustainable (in that you're burning up inventory like crazy) but it has the advantage that if you've picked the right names, your costs are paid for almost immediately. Finally, it's untargetted - you're reaching an audience looking for "bargains" but not for names in any particular niche.

In the end-user market, you hang onto domains for years (potentially decades) but the payoff is 10x, 20x, 50x, 100x or more what you'd expect to get by dumping it on here. You're basically trading time and liquidity for a much larger payoff down the road. You're also reaching a highly targeted market - buyers are typing in their desired domain because of their interest in that niche, and enquiring from there.

So a domain might only be "worth" 50 pounds in the knock-down, rough-and-tumble Acorn domainer-to-domainer market yet still go on to fetch 1,500 pounds from an end-user a month from now. There's no contradiction, because the two markets have nothing at all in common. And if that domain's listed for 100 pounds on here, it won't sell!

 

[domainseller200]

Edwin

Whilst I agree 100% with what you are saying, you are also guilty of posting large lists of names with for example :

1 @ £2500
5 @ £2000
10 @ £1750
20 @ £1500 (best price)
etc..

So are you saying that these are the same sorts of price that you also use with end users OR are you lowering the prices to raise capital for other areas, at that moment in time ?

You don't have to answer, but just curious really

 

[Lucky Luke]

Hi Edwin,

I've seen you move pretty quickly on Acorn to buy good names. You'll then list those with your other 4,999 and wait.... nice arbitrage

I guess your other sources of domains nowadays are (i) free-to-reg (ii) catching and (iii) approaching existing holders (possibly).

Have you sold many via Acorn?

cheers, Luke

 

[grantw]

Hi Grant

Could you expand on this part of your post? Your insight into Acorn v. the rest of the UK market would be appreciated.

Thanks, Luke

I think Edwins post there explains the difference between Acorn and the rest of the market pretty well.

When I say different, there seems to be more and more members catching/registering domains one minute then dumping them on here the next like hot potatoes - usually for peanuts. Does that £5 reg fee really need recouping within a few hours/days?? It gives the impression that the market has dropped on it's arse and as the only .uk forum it's not really a great impression to be giving out to.

Grant

 

[websaway]

I think Edwins post there explains the difference between Acorn and the rest of the market pretty well.

When I say different, there seems to be more and more members catching/registering domains one minute then dumping them on here the next like hot potatoes - usually for peanuts. Does that £5 reg fee really need recouping within a few hours/days?? It gives the impression that the market has dropped on it's arse and as the only .uk forum it's not really a great impression to be giving out to.

Grant

In reallity I don't think this happens with quality domains so much as mediocre names which are not a great hold but might see a profit on a swift sale, especially if others have been stalking the name prior to it dropping. Drops are often fools gold. But, register a name today for £5 sell tomorrow for £40, makes good business sense for a beginner.

 

[domainseller200]

But, register a name today for £5 sell tomorrow for £40, makes good business sense for a beginner.

It also enables them to build a pot of money to spend on better / more expensive names in the long run also

 

[aZooZa]

Turning £6 into £10 within a week is pretty good business.