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Domain Parking PPC Down, Renewal Costs Up: Is This a Buying Opportunity?

Time to go trolling for mid-low market domains?

     
5:15 pm on May 24, 2008 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I'm perceiving a "low buzz" in the domaining world - a sort of law lament or public acknowledgement of the need to trim portfolios to reduce overhead, etc.

Folks who depend on parking PPC income to sustain their domaining habit are likely feeling the pinch of lowered PPC incomes, due to smartpricing, housecleaning by parking companies, etc.

I suspect that there may be domains that, a year or two ago, some domainers wouldn't have sold for less than $2-3,000 that may be purchased - today - for hundreds of dollars in come cases.

Do you think that the time between now and the next gTLD price hike for .Com in the Fall might present some buying opportunities?

What about in the higher end domain market - the $10K-$50K+ value domain range? Do you think there may be some buying opportunities as "lifestyle needs" may demand that some sales be made to sustain those lifestyles?

Will opportunity knock in 2008 for those sitting on a bit of cash? I vaguely recall going on a successful buying spree in 2002-2004 as the deflated .Com bubble caused many to question their domain investing.

Are you "cash ready"?

Do you see what I see?

Or am I a loon?

[edited by: Webwork at 7:25 pm (utc) on May 26, 2008]

2:17 pm on May 27, 2008 (gmt 0)

WebmasterWorld Senior Member bwnbwn is a WebmasterWorld Top Contributor of All Time 5+ Year Member



Webwork
Very good point I just picked up a domain that has links to it expired. Now it isn't domain that makes news but it does have links so I bought it and did a 301 to my main domain.
You may be right here as the dig domainers may need to slow down I am getting emails from domainers I inquired on a domain a year or so ago with big savings. I send them my buying price and that is that.
10:05 pm on May 27, 2008 (gmt 0)

10+ Year Member



Depends.

People with top tier domains still have stars in their eyes and have no desire to lower prices.

People with PPC-based domains are getting hit hard by the falling PPC prices. If you want to buy domains and use them for something other than PPC - yeah the time right now is pretty decent. If you want to stick with PPC? Hell no :)

10:22 pm on May 27, 2008 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member



It seems that the buying cycles are cyclical but they only come around every 3-4 years. I was reading an economic forecasters report today and it appears they are starting to model a recovery ~18 months. I suspect advertising spending may anticipate and precede the recovery so the domain buying window may be shorter than 18 months.

And yes, buy to develop and diversify. ;)

11:25 pm on May 27, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I think there are some domainers out there that are looking to fund renewals. In order to raise funds quickly some quality names are occasionally coming onto the market at sensible prices. It's almost surreal lots of the same overpriced over hyped names but then occasionally a few gems floating in between.

Like that class defining name you pickup up the other day ;)

11:25 pm on May 27, 2008 (gmt 0)

10+ Year Member



Color my cynical - I don't see a recovery coming that well that soon.
8:23 am on May 28, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Do you see what I see?
I've been working on a historical domain transaction database (new registrations/deletions/transfers over com/net/org/biz/info/ie/eu etc) going back to 2000. And the trends are clear. With the advent of domain/drop tasting, the natural ebb and flow patterns become rapidly screwed up from about 2003 onwards. (It looks like a system destabilising.) The effect has created an artificial market where good domains are seemingly high priced and free market competition is closed off by the drop tasters creating an oligarchy. If, and it is a big if, ICANN actually does impose a 'restocking' fee then the market will move back to a more open, free, state. This will collapse the value of much of the multiple keyword domains that have been selling at ridiculously high prices for the last few years. It may also trigger a collapse in the value of geo type domains. The generics may retain their value but I'm still not sure how the valuations of domains will change. I think that the domaining industry is hurtling on at full speed like the Titanic, obvlivious to the rapid changes that will occur in the next three months.

Regards...jmcc

 

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