Like many, I believe that the domain industry is here to stay. There will always be a need for premium domains, and there will always be buyers.

The forces of supply and demand will help to influence the prices at which domains are sold for, and as time goes by, hopefully, marketplaces will compete by the quality of the domains that they have listed for sale, rather than the sheer volume.

Real Estate brokers don’t expect the housing market downturn to send people seeking out caves to live in. Domainers on the other hand should not expect investors to retreat from the internet.

The Internet is now a way of life. People depend on the internet for their day-to-day life just like America and China depend on oil.

On Wall Street, it is not unusual for investors to try and benefit financially from the demise of others. It comes as no surprise that some domain investors have openly expressed their intention to try and benefit from any fall in domain prices as a result of the wider economic woes.

What this shows is that like properties, domains will always sell no matter what. Domain investing is just like any other investment… you need to have enough cushion to survive the slow periods.

Do domains have immunity against recession? The answer will lie in the negotiations skills of the buyer and seller. If the seller is feeling the pinch elsewhere, as a result of the wider economic downturn, then he will mostly likely be a motivated seller. This means that he will be anxious to sell, to ease his cash flow problems.

If the buyer senses that the seller is desperate for cash, he will no doubt take advantage of the situation. This could result in domains of very high quality being sold for average prices.

Nonetheless, recession in the wider economy could mean even higher demand for premium domains. In a recession some businesses will choose to cut costs, including advertising costs. This can be a mistake.

Savvy marketers will realise that they will need to advertise more, and do so more efficiently and effectively. One of the best ways to achieve this is to obtain a premium domain name, which will provide a definite advantage over competitors.