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Is the Domain Name Market Heading for a Deadfall?
By: MAX FILEV

You see, the truth is that the market is flooded with “worthless” names that domain rookies registered and are trying to resell. Inexperienced domain name investors do not buy from other re-sellers; they just stick to registering domains at the lowest possible fee. What we begin to see is masses of worthless domains, and no buyers. The only one who is making money off this is domain name registration companies. Now, lets explore why the experienced domain name investor is unaffected by this “flood” of worthless domains.

First of all, knowledgeable domain name investors buy domains from other investors. If they see a good domain being auctioned off extremely under priced, they go for the kill. They know that they have a good domain name on their hands and they hold on to it, even if it takes several years to make a sale. You must be able to sort the “gold” from the “dirt”. Rookie domain name investors cannot wait more that one year; they usually seek a quick buck and register domains that are not worth anything causing a flood on the market. Since the average domain which has some value to it takes approximately 12 months to sell, the investor who does not know the true value of his domain will end up letting the domain name expire at the end of the year. This causes the flood to “evaporate” and only the good domains are left behind in the hands of serious investors.

The experienced investor is not affected by the mass of domains available on the market since they will all disappear very soon. Good domains are always selling, and bad ones are just left to expire and written off as a loss. If the domains would not expire, but would be left to sit on the market forever, we would have a huge problem on our hands. So there is actually a benefit to the yearly fee that we all have to pay in order to participate in this exciting investment revolution. The domain name market is no where near collapsing since the internet growing exponentially. Millions of new internet users are joining the world network each year, generating more traffic and more revenue onto the virtual marketplace.

Be wise. Don’t fall for the “quick buck” scheme. The flooded domain market only shows us that there are huge numbers of people trying to get rich without putting in much effort. These folks are heading for a sad downfall since the opportunity which they are looking for today already past us more than ten years ago when the market was first emerging. If you take your time and keep your cool when engaging on the marketplace, you will make money.

To determine a better idea of how much your domain name is worth check out the Live Human-Driven Appraisal Tool.
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