Domain Manage

Speculative Registrations

Discussion in 'Domain Research' started by retired_member6, Oct 20, 2009.

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  1. retired_member6

    retired_member6 Banned

    Apr 2005
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    When will wholesale speculative domain registration return? We all know only about 30% to 40% of domains are regged these days on the drop compared to 2006/07 leaving 60% of daily drops with possible resale value left to pick at a later date, when will it pick up again, first quarter, fourth quarter 2010 or will we have to wait longer? I'm reliably informed that the mortgage market is currently seeing a boom, will domains follow suit?

    *The surprising element is there appears to be 40% more drop catching these days and about the same again dipping in after, yet less domains regged that are worthy of registering on a speculative basis. Do the new lot lack the balls or the knowledge and are the old lot just too apprehensive about their investment?

    **Second edit, I know I'm relatively new.
  2. Domain Forum

    Acorn Domains Elite Member

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  3. suzi United Kingdom

    suzi Active Member

    Apr 2008
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    I think it's a combination of many factors.

    I bought my first (and still best!) domains over 10 years ago - but still think of myself as a beginner in domaining terms - perhaps largely due to doing little or nothing with them for 5 or 6 years!

    I don't rely on domaining for income - which is a good job - but would like to make my 'hobby' into a profit making venture - to justify both the time and money I have spent on it.

    But at the same time, I'm cautious about buying large numbers of domains - because yes, quite frankly I don't know what lots of them are worth and perhaps even more importantly, I don't have a large network of potential buyers, other than here, Domainlore, Sedo, eBay etc or direct to end users. I certainly don't have an email list of potential customers or a big blog following.

    Perhaps people are getting more savvy with domains. They've begun to realise that the domains they rushed to register a couple of years ago with a lack of real knowledge, but in the excitement of a booming economy (things like really aren't worth anything at all for resale and are extremely unlikely to generate even enough income to cover the reg fee. These are now dropping in their droves. And no-one is picking them up, because they really shouldn't have ever been registered.

    In times of economic woe, it is often said that there is a 'rush to quality' in all sectors. I suspect the maxim holds true for domains too. People realise that there isn't such a ready market for some of the more borderline domains that there might have been a demand for a year or two ago.

    Unless you believe domains really are a commodity in their own right, to be traded for their own sake and valued solely on their uniqueness and perceived quality, the value of all domains must ultimately be underwritten by a belief that somewhere there is an end user who would like to own it and who could do something with it to generate enough income to justify its price.

    In a recession, the options to do that are more restricted than in a boom. That means people generally need to be more particular about what they buy. It also means people are likely to be wary of buying 'stock' that they are going to struggle to move on or to monetise.

    It should mean there are opportunities for the well funded investor to buy stock easily and if it's already dropped - cheaply. But they may then need to be prepared to hold it for some time before it can be sold on - and they then need to consider what the margin is likely to be and whether the extended time-scales, lower demand etc etc make it worth buying anything that is not of at least better than average quality.

    Lee, you seem to buy in reasonably large quantities and you certainly buy names I wouldn't, because I wouldn't have a clue how to move them on at cost, let alone make a profit on them. So presumably, this actually ought to be an ideal time for you?

    But, if you can't see value in many names, given your experience and contacts, is it surprising that 'the new lot' aren't prepared to take the risk?

    I didn't intend to write a thesis... apologies!
  4. dotNetFreak

    dotNetFreak Well-Known Member

    Jul 2009
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    Great post!

    IMHO a big percentage of the names dropping at the moment are complete and utter rubbish, sure there are a few gems in amongst the junk and perhaps a few half decent speculative names, but the majority I wouldn't touch at any time, especially not in the current economic climate.

    Interestingly enough a lot of the junk seems to have been reg'd in 2005/2007 when there was simply more money around and when I guess a lot of people thought that any domain was worth something, now with things a bit tighter, these domains are dropping and as people are more selective about what they catch or hand reg there is therefore a greater number being left available.
  5. retired_member12

    retired_member12 Retired Member

    Aug 2006
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    Great post suzi, I probably fall into the same catagory as you. Not a seller for sure, unless someone makes an offer I cant refuse (always nice to pay off a bit of debt, etc!)

    When I look at my 'small-holding', I only reg names that I personally have a use for. The smallest percentage of them (about 10%) have definate 'site' development potential, which is to say they would produce a site purely on their descriptive term with a quite broad range of uses, such as:

    Subject Information & News

    Then there are about 25% which are possibly good for:

    Subject Information

    Whereas the final 65% are really only suitable for:


    Its this last bunch which from time to time I look at (especially now) and wonder whether it's actually worth re-registering, as there is no real justification in my mind spending hours & days seo'ing them to pick up just double/triple the annual reg fee.

    It's perverse statistic that, as the low/non-value domain dross is dropped, there are going to be plenty of new buyers who don't realise they have arrived late to the 'boot sale', and will buy any old shite regardless. It happened 2-3 years ago, and it looks as if it is happening again!
    Last edited: Oct 20, 2009
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