Now Is The Perfect Time To Invest In Domain Names
Kevin Jackson May 26, 2009 3

A new day has truly begun in the domain industry. For years, domainers failed to see any potential for domain names beyond domain parking. With the current economic downturn inevitably came a reduction in domain parking revenues, to say the least.

For most domainers, it was more like a monetization Armageddon. Parking revenues fell so sharply from glory, it’s like the domain parking world stood still.

I made very good income from domain parking. I still make good money from domain parking. I don’t list domains for sale that do exceptionally well with domain parking. As a matter of fact, I don’t market domains for sale based on parking revenues, but more on their keywords, generic characteristics, branding potential etc.

The ease with which domainers made money with domain parking acted like a magnet in drawing people to the domain industry. The force of this magnet was so strong that all that people could see, speak and hear was “domain parking, domain parking, domain parking, blah, blah, blah”.

No one was treating domains like branding tools or looking at domains in terms of their ebusiness potential.

Well, with the abundance of parking revenues, and the ease with which one could easily register a domain name and set up a parking page, why would anyone want to even think about lifting a finger?

My approach to domain name was never about parking revenues in the first instance. It was all about building a portfolio of ebusiness domains. I monetized my domain portfolio well through domain parking, and as is the case with so many other domainers, this resulted in a lack of urgency to develop brands.

Now, the tides have changed, and one has to look at profits rather than just a mere domain collection. With domains, either you brand them, sell them, monetize them or you drop them.

I was very careful from the outset to focus on domains with development potential. As I said, I did not acquire domains based on any traffic stats, but rather based solely on their ebusiness potential. So I think I got lucky with domain parking so to speak.

The domain industry is getting more and more focused on domain development. This has resulted in very fierce competition between web development companies that target the portfolio domainers.

At last, the vision that I had is slowly taking shape. I was preparing for this day for a very long time. As a matter of fact, I was getting ready from day one.

This is where people stop focusing on stats and gimmicks, and of course crappy domains, and start think business, or better yet, ebusiness. There is a big difference between the two in case you have not realised.

This recession, as terrible as it is for so many people and believe me, it is really horrible at the moment for a lot of people, it has created the right environment for success.

Did you know that some people use horse manure as fertiliser? Imagine something as disgusting as animals’ waste being used to boost the growth of vegetables.

Well this economic recession is like that horse manure. It is causing a lot people to think seriously about their future, re-energise their entrepreneurial spirit and start new ventures. This has resulted in a lot more people turning to the Internet to start an ebusiness.

With less focus on domain stats and more talk about domain quality, my domain portfolio is now a lot more valuable.

With a fierce competition now going on in web development land, it is the perfect time to get that fancy design for your website at reasonable prices.

With more people seeking to start ebusinesses, now is the perfect time to buy, sell and invest in domain names.

This is the moment I have been waiting for. I have been preparing for rain for years, and it looks like a storm is coming!

3 Comments »

  1. Helder May 26, 2009 at 5:33 pm -

    This is really a time of opportunity, and generics will be each time more apreciated.

    Domain parking is really down, it’s not worth to work for cents

    Good post

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  2. Snoopy May 26, 2009 at 7:49 pm -

    “With less focus on domain stats and more talk about domain quality, my domain portfolio is now a lot more valuable.”

    Wishful thinking in my view. I haven’t heard of any category of domains that is more valuable than a couple of years ago. The entire market is well down.

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  3. Kevin Jackson May 26, 2009 at 8:51 pm -

    @Helder,
    This is really a time of opportunity. However a lot of people spend too much time panicking rather than looking for deals. There are a lot of domain deals out there, and they will not last for long. This opportunity to buy quality domains at such bargain prices may not return anytime soon.

    @Snoopy
    We are already having loads of success. So it is more of a reality for us.

    I am coming from a supply and demand perspective here. There is an increase in demand for quality domains over crappy domains with useless stats. We are experiencing an increase in domain offers week after week, and this has afforded us the ability and luxury to properly work the deals.

    I agree that he domain aftermarket, like almost all other industries, is experiencing a drag on sale. But what you should really bear in mind here is that the domain aftermarket is fuelled mainly by domainer-to-domainer sales. Domainers bought domains based on their stats and domain parking potential.

    As Helder said, domain parking is like a lame duck at the moment. So the domainer-to-domainer sales are quickly drying up.

    The domains that are really selling now are the quality domain names with development potential. These are the domains that we have been specialising in from day one.

    We are getting ready to kick-start some massive marketing campaigns aimed directly at end-users. This will increase the demand even more, and of course, subsequently the prices will increase as well.

    We are closing domain sales on a weekly basis here at eBusinessDomains.com, and we have not even started any major advertising drive as yet.

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