2009 Domain Predictions - I was Right On The Money
We have now had six full months of domaining in 2009, and what a fantastic year it has been so far!
Times have been tough for many, but the domain machinery is still powering its way through the economic downturn.
In early December 2008, I made my predictions about the domain industry for 2009. You can read that blog post here.
I have just read the post again, and I was spot on with my predictions.
Prediction 1
” I can see more domain blogs coming online, more domainers developing their domains, and more domainers building brands.”
I have seen at least 4 new domain blogs coming on stream since January 1st. I won’t name them here, but am sure if you go back and check and start counting you may find up to 6 new domain blogs.
Domain development has been a central domaining topic each and every week since the year started.
I am not sure about the brand development aspect here, as some domainers quite frankly still don’t know what branding means or how it works. Developing minisites is not web development, and in the same breath, building a full blown website is not brand development.
Nonetheless, I have seen quite a few domain industry players taking bold and sometimes smart steps to enhance their brands, reputation or even recognition. So this prediction is still spot on.
Prediction 2
” Geo domains will take off like crazy. This will be seen in increased registration, aftermarket sales, and development. More domainers will depend less on PPC revenue, and start building ebusinesses based on local advertising revenues.”
We are now seeing Geo domain reclaiming the spotlight. There have been a few noticeable geo domain aftermarket sales. There was at least one geo domain conference, and a few announcements recently about some major geo domain portfolio development. There were even some recent reports about some major alliances been formed between some top domainers.
I didn’t have the time to do the necessary research to get you the right links etc to prove these points, but if you have them ready, please post them in the comments section.
Prediction 3
” Web designers and developers who can efficiently build mini-sites at economical costs to domainers will flourish. However, the mini-site phenomena may be short-lived when domainers realise that simply building mini-sites does not mean automatic riches.”
Oh yes, this is the exciting one. Mini sites have taken off so much that there is even now a literal war going on between the companies offering those services. Most domainers seem to be doing their own minisite development. This is sensible if one has got time, as minisites are absolutely easy to put together.
Here at eBusinessDomains.com, we have now built a robust technology that will develop a minisite on any of our domains with just one click of a mouse. The minisite will take less than 10 seconds to go live, if the domain is already pointing to our nameservers. We hope to have most of our domains switched to this new platform within the next week, or two latest. This will help us greatly in our domaining strategies.
I did say we were going to take domaining to a whole ‘nother level in 2009. So far we have re-designed our marketplace, developed numerous domains, and we are continuously rolling out new projects and technologies that will enhance our brands and help improve and reap more success in our domaining strategies.
Prediction 4
” Domainers will continue to suffer at the mercies of unscrupulous registrars and parking service providers. There will be increased scams, frauds, and malicious activities aimed especially at newbies. The “experts” will continue to misdirect those who desperately seek information while they drain the newbies of their cash.”
If I expand on that prediction I will inevitably upset a lot of people. But this is another prediction that is spot on.
Prediction 5
”Domains in my opinion will continue to sell. However, more domainers will inevitably have to focus on quality, and not quantity. There could be an exodus of domainers dropping rubbish domains.”
Yes domains are still selling, and there have been some fantastic sales report so far. Candy.com sold for $3m and Ad.com sold for $1.4m. Here are the top five published/reported sales for 2009 at the time writing:
Toys.com - $5,100,000
Candy.com - $3,000,000
Fly.com - $1,760,000
Auction.com - $1,700,000
Webcam.com - $1,020,000
Source: DN Journal
Recession, what recession?
We have had our fair share of decent domain sales as well. Nothing in the millions (as yet), but close.
With regards to quality over quantity, I believe all sectors of the domain industry are now getting this. Quite a few domainers are culling their portfolios without remorse.
Prediction 6
” Domain auctions will become the preferred method of domain acquisition, as the market price of a domain name will be set by the forces of supply and demand.”
Although a few of the domain auctions were not as successful as they could have been, there have been numerous domain auctions since the start of the year. There was a fair share of live auctions as well, with all of them having an extended online version.
Did I leave anything out? What predictions did you make?
NB: If you put a link in your comment our anti-spam filters will hold the comment for moderation. All other comments should be published straight away.
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June 28th, 2009 at 10:20 am
I guess you were right, all those predictions are happening in a higher or lower level, but they are, i guess i’m gonna have to ask you for the lottery numbers
About the mini sites, i’ll tell a little of my experience without naming any service. I’ve moved most of my domains from parking into mini sites, but with one single exception, all domains performed better at parking pages than with mini sites.
The reason i believe is something Rick Schwartz said once, when people reach a parked page with relevant ads they tend to click them and you make money, when they reach a mini site, they probably will starting reading articles, and they might not click any ads it all.
Well the only advantage i can see in a mini site is the fact that you can add other revenue streams like affiliate links, but if the domain doesn’t have that much traffic it won’t do much good.
Better than mini sites IMO is, if you have domains with some traffic, a few visitors per day at least, then set up a one page site, with ppc ads and some affiliate links, with some reviews of the products, and that’s it. People won’t waste time reading articles without clicking or buying something.
Think of it, as an advanced form of parking. Just make sure it’s very cheap hosting and that you make money to cover it and make profit.
If you have domains with no traffic or no potential, there are domains with excellent keywords that deserve to be developed into a business, and yet when parked they don’t get traffic, so those are worth keeping, the rest sell it.
In the end it all comes down to one strategy.
June 28th, 2009 at 1:57 pm
Very impressive.
June 28th, 2009 at 3:07 pm
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June 28th, 2009 at 3:18 pm
“Candy.com sold for $3m”
Hi,
The Candy.com sale needs to have a gigantic asterisk next to it.
The deal Rick made could trump the
“Toys.com - $5,100,000″ sale several times.
Candy,com was not just a cash deal.
Rick is getting a 2% residual on gross candy sales for 15 years.
But it potentially gets even better.
Rick says on his blog: “Besides the 2% off the top, I also have a provision in case Hershey’s or Mars or whoever wises up and acquires Greg’s company or the domain at some point down the road.”.
Rick is a very, very smart man.
—-
“Here at eBusinessDomains.com, we have now built a robust technology that will develop a minisite on any of our domains with just one click of a mouse.”
Are you going to keep this in-house or offer it up as a service?
June 28th, 2009 at 8:50 pm
@Helder,
I don’t remember reading that particular post by Rick Schwartz that you mentioned (maybe I have), but it is indeed a very good point.
Minisites will draw the traffic from search engines, unlike parked pages, but the content on minisite may end up distracting the visitors. Also, Internet users coming from search engines are looking for useful content relating to the searched terms/keywords, not ads.
It is easy for parked pages to make money as almost all links are ads, and when clicked will earn the domain owners money.
Nonetheless, if minisites are designed well, especially where they act as sales funnels, they can make the owners even millions. A lot of Internet marketers make millions from one-page websites.
As you said, in the end it all comes down to one strategy.
June 28th, 2009 at 8:51 pm
@David,
Many thanks!
June 28th, 2009 at 8:52 pm
@Patrick,
Thanks for expanding on the Candy.com sale. You are absolutely right, and you have said it perfectly. The Candy.com sale should be used as a model for all future ultra-premium domain sales in the future. Rick is indeed smart. He has his eyes opened to the true potential of domain names.
With regards to the minisite technology, it was designed specifically for in-house use, but we are looking at launching a commercial version in the near future. Will keep you posted on this.