SHOULD WE SELL OR KEEP OUR DOMAINS?
October 15th, 2008 Posted in Aftermarket, Domain Appraisals, General Domain News
I’ve pondered a few things lately regarding the status of the almost 4000 domains I own. I’ve whittled this list down over 10 years, so I don’t have any crap domains. At least, that’s my professional opinion, but what do I know other than what Adam Strong and Andrew Allemann tell me?
I want to go on a domain-selling rampage because I have about 1500 domains that are outside my main interest niches. Or, should I protect my domains and sit on them? I believe that if you’re a domain investor with a limited amount of capital, you should buy domains that cover all variables of your niche categories. Any domains outside those categories, sell.
However, I’m seeing something very prophetic lately, and maybe you have too. That “message” written in tea leaves (or in the bulk search registration window of your registrar) is “Sorry, all the domains you thought were available, no matter how nichey and unusual, are TAKEN!”
That’s right. I have run about five straight searches on prodserv domains totaling about 50 potential buys and I keep getting “domain not available”. WHAT!?? I pride myself on snatching OOTB domains! Are domainers now following my strategy I started five years ago, which is buying domains matching futuristic trendy prodserv news articles?
I’m freaking out. I can’t find any domains that I normally would have nabbed without question even a year ago. I just saw a new product out that’s like a flesh colored stocking worn as a long sleeve shirt that covers up “full sleeve tattoos”. It’s a needed product for law enforcement, public workers, waiters, etc. So I searched up about five different ways to describe this product, some of my names were a little esoteric, probably not really good for typeins. BUT ALL OF THE DOMAINS WERE TAKEN! Even the ones I wasn’t sure I’d actually register. This has been happening more and more lately, regardless of how unusual the phrasing.
This tells me one thing: MORE GENERIC DOMAINS ARE BEING PURCHASED NOW THAN EVER
This means, regardless of how the domain sales pricing is going at auction and elsewhere, that fewer domains are actually available even with “FUTURE TREND” prodserv phrases. Further analysis and advice?
HOLD ON TO YOUR DOMAINS AND DON’T SELL THEM UNTIL YOU GET AN END USER!!
Screw it. In three years, you got maybe $30 invested in a domain you KNOW will sell for a minimum of $100 or much much more. If I was a domainer, I’d raise my reserve prices, force the domain auction producers to try to reach end users to sell the domains. If all domain investors followed this “embargo”, the domain auction producers wouldn’t have domains to sell other than their own. I think we domainers should just go on a moratorium for a year and decide NOT to sell our domains to another domainer unless they want to pay the price we think our domain is worth to an end user.
I dare end users to go to their registrar, and type in every variation of their prodserv they can think of, and see if it’s available OOTB. I’m pretty confident they’re going to come up with a big NOT AVAILABLE.
So, we domainers who own all these great generic prodserv domains can hold on to them and make the end users, the domain auction producers, and other domainers who want to pick off our domains cheap, start sweating like old men in a Greek steambath by just refusing to sell cheap!
I will lead the charge! Just let me off a few of my domains for cheap that don’t fall into my niche categories… oh crud… here we go again! 
11 Responses to “SHOULD WE SELL OR KEEP OUR DOMAINS?”
By SA on Oct 15, 2008
Decision time indeed. Turbulent market, turbulent times.
I am a fan of the hold mentality.
I am betting that after reporting poor financials that layoffs in big companies are to follow.
Interestingly this action will produce end user buyers looking for generic names for new entrepreneurial ventures.
By Francois on Oct 15, 2008
This post is funny as I remember have recently seen you comment another blog post:
The blog owner wanted to drop some unwanted names from his portfolio and you was doing a counter offer to acquire the names for few dollars.
So yourself you are also trying to acquire names from others domainers for peanuts
My friend, I don’t blame you, everyone is doing this.
In fact it’s well known that when a name does not generate revenue and has low/no domain metrics (search populary, term frequency, …) and his value is potentially few hundred dollars at best then what count is the gut!
It’s not rare to no longer like some names one purchased few months or years ago:
“It’s me who purchased this shit?” How many times it happend to you, me, and all domainers.
Now you are right, in this earth there is allways someone interested to buy your names, even the ones you was willing to let expire to clean your portfolio:
As I recently commented in our newsletter, all the names I let expired this summer has been sold. All!
And you know what?
These are names that nobody NEVER asked me to purchase!
So if I should sit and wait end users for my “garbage” it’s better I take a bed as the waitting time should be long.
I think we have found a terrific and funny idea to quickly sell these unwanted domains and make a great return.
Stay tuned at Domaining.com, a great solution is coming soon.
XXXXXX Stephen Douglas Responds:
Absolutely! I’m a domainer too! But I also believe that once you have your domains, and you can afford it, hold on to them. If they aren’t making any money parking, then move them to WhyPark and get them indexed with content, so the SE bring in some traffic and start building up page rank value, if possible.
And Francois, I ALWAYS stay tuned to Domaining.com!
By Lou Mindar on Oct 15, 2008
Stephen –
I tend to be a domain hoarder. I even have trouble parting with my not-so-good domains. But I am a believer in selling domains outside your niche or area of interest to raise funds to develop your niche domains. I firmly believe the future (and the money) is in developed domains.
XXXXXX Stephen Douglas Responds:
Hey Lou!
Yes, if you have a good portfolio, and you have it divided up into sections on how you plan to market the domains, you can see a budget to continue, and if that includes paying renewal fees on your domains, or even being able to bid on domain auction domains, you’re in the money if you’re going to hold tight and wait it out. Few domainers have ever sold a domain for less than what they paid for it. I’d like to hear stories from anyone that’s happened to.
By Kelly Lieberman on Oct 15, 2008
You are so right! It IS getting harder and harder to reg. any new prod/serv domains even in really new niches!
I have noticed the same thing. I think that for me the key will be to really nurture the domains that I have and to maximize their best potential as quickly as possible.
I will have to get a VERY reasonable offer before I would consider parting with one of my domains now. I can afford the renewals and I believe in the future of this market!
XXXXXX Stephen Douglas Responds:
You’re on the ball, Kelly. Keep it up.
By Chris on Oct 15, 2008
Does your portfolio include .org’s, .net’s as well? I am still finding lots of great generic terms there.
XXXXXX Stephen Douglas Responds:
I have a simple secret I tell my clients about what extensions to focus on. I might have posted that info somewhere, but I’m not going to talk about it here because I don’t want to contribute to the possible devaluation of some of my domains. really!
By Jill on Oct 15, 2008
A refreshingly honest post. If you write a book, I shall buy it.
XXXXXX Stephen Douglas Responds:
And if I post some nice domains, will you be inclined to …
Thanks for the nice comments!
By jeff schneider on Oct 15, 2008
We suggest very strongly to Hold all quality .coms. To sell if you need money all other extensions other than .coms.
If you have to sell, try to sell all other extensions besides .coms, and trade up to quality .coms. Hold .coms as your highest priority.
The smart money is hoping to buy .coms on the cheap. Use your head or you will soon be separated from it. I am trying to be clear here, and hope this helps people from being fleeced. Respectfully, Jeff Schneider
By domain investor on Oct 16, 2008
Let’s face it right now unless you’ve got a one word domain.com end-users want to offer you crap -$100. It’s the domain investor that usually will give you more knowing the future value of the domain. We are a unique niche in itself. Most of the business we do are within our domain world group. That’s why it makes me mad when the domain gurus talk dome and gloom. We are nothing like the stock investors. There is always going to be business on the internet. So there shouldn’t be a fear of buying and selling domain names. We have created our own slow down in domain sales aligning ourselves with the stock market woes. Traffic N.Y. is a perfect example. Rick Schwartz talked very positive about it going in, hyped everybody up, and it proved to be a success. For a minute I thought maybe things are getting back on track. Common lets stop doing this to ourselves. PPC is slow because of the economy. Domaining should not be slow.
XXXXXX Stephen Douglas Responds:
Yes, PPC is slowing down because of many factors, including the economy. However, domain sales are kind of on a see-saw. People who aren’t domainers may be dumping their domains for cheap because they’re scared, or need the money. But my research is showing me that many great domains, possible OOTB domains, future trend domains, are being ransacked daily for the cost of registration (OOTB =Out Of The Basket).
This tells me that at some point, these domains, which are generic and descriptive, will be eventually picked up by either domainers or endusers. It’s up to the domain industry to decide how we want to proceed strategically or tactically. Do the big buyers want to delay spending any money on promoting domain name values to the business sector so they can buy up all the failing domainers’ portfolios for cheap? Or do we domainers get together and start educating the business sector NOW so that we don’t have to succumb to selling our domains for pocket change to big domainers who have deep pockets filled with more than “loose change”?
The promotion of domainers as “heroes” usually tells the same story: Domainer buys domain for cheap, flips it for huge bucks later. Notice the qualifier “cheap”. That doesn’t go over well with domain sellers if the seller is giving up the domain for less than what they feel it’s worth. A real domain hero is someone who sells their domain for a substantial price to an end-user, regardless if they bought it for cheap. I don’t get excited about domainers buying other domainers’ domains. So try not to be the guy who is on that “cheap” side nobody talks about. (thank god)
Thanks for writing!
By londoner on Oct 16, 2008
I am in similar boat although I have around 50 domain names.
By Mike @ WannaDevelop.com on Nov 17, 2008
Sell… If you can
Mike
http://www.wannadevelop.com/
By John Smallwood on Dec 1, 2008
Hi Steve…
I think you have a domain that I want. Please contact me if you have a moment. Thanks.
John