What Mamma Didn’t Tell You

Someone famous once said “If everybody is selling, it’s time to buy”.

This quote is true in so many way unless the investments are in a market which is going to end – and the internet is not ending.  In fact, it’s still only beginning.

In recent months we have witnessed the introduction of the Snowe bill, an American economy whose ultimate direction is not entirely known and slower domain sales (for the larger names).

However, is this doom and gloom for domainers?

No.

It’s an opportunity the market has given you to purchase prime property at discounted prices for a limited time.

The Snowe bill is a potential threat but you have to wonder why many of the larger companies (ones we all pay money to) have not spoken more publicly to gain momentum against the bill. The same large companies who hold many of the generic names which could be subject to the Snowe bill in its present form. Additionally, VC firms are giving money away to this space like pigeon feed in leicester square.

I’m not saying we should ignore the bill but it certainly would be nice to see some more valid discussion on it – certainly from the ICA to the domaining community.  Am I missing something - so quiet….

As for doom and gloom, we are far from this.  I’m still waiting for the same person who claimed the domain industry is in this state to issue an orange alert for DMD (domains of mass destruction) – No republicans in this company….do not get me started….

Others mention why some people are selling their names for the first time – natural progression of business I say.  If a few large portfolio holders had investments tied up in American real estate (which I know some of them did) then the loss is not from the domain industry – it’s simply a matter of diversifying (hence freeing up cash from the sale of domains) because of the substantial losses incurred from another venture.  Real estate has always been king – one of the safest investments around.  Not so any more in the good ole us of a.  Best time to buy a house in our humble opinion – 2010.

So, where are we now…

All of us entered this industry to secure a little corner of the internet.  Now that you have a corner why are you not developing more?  Domain parking is a great source of “bonus” revenue – but it never has been a good retirement plan. 

Domainers (in the pure sense of this word – I mean people who simply buy and sell domains with absolutely no real intention of development) will always be subject to market trends and general economic concerns the greatest.

Domainers who develop will be able to weather storms, take advantage of the opportunities presented when price corrections appear and continue to build their corners of the world into small countries.

With that said, it’s important to do what you believe is right to protect your assets (support the ICA could be one) but it’s equally important to understand who you are.  Ask yourself…

Are you a pure domainer (just someone that flips)?
Do you have development plans?
Can you actually make these development plans happen?
Do you have an idea but no real talent (hire or partner with someone who does)?

The domain industry is no different than real estate (or any sales business). Most real estate people reside in one of two categories:

A) People who sell a few houses a year, happy to make 50k.
B) Those who develop a client book and can weather most storms

Guess who always gets hit hard first.

When the storm is over, guess who is stronger.

Mamma always said don’t put your eggs in one basket.

She was right.

What she didn’t tell you was you can still leave a lot of them in one basket – if you know how to cook.