How’s the Financial Climate for Domains?

There
has been some debate on how the current banking and financial crisis is
affecting the domain industry.  Whether or not this specific
crisis affects domains, the general economic slow-down is definitely
having an effect.  While $3,000,000 did change hands in Moniker’s
T.R.A.F.F.I.C. New York live domain auctions, this is down from
$10,000,000 in 2007.   Last month’s newsletter provided information on similar deceases in parking income; and on Oversee.net’s staff cuts.

 

Perhaps
most telling is the fact that there will be only two T.R.A.F.F.I.C.
shows in 2009.  T.R.A.F.F.I.C. had three shows in 2006 and in
2007. There were either three or four in 2008 (depending on whether you
count T.R.A.F.F.I.C. Down Under).  If Rick Schwartz and Howard Neu
are slowing down, then you can bet that the domain industry is slowing
down.

 

How
does this affect your domain strategy?  Undoubtedly some of us will let
some domains expire because they are a bit harder to monetize.  This
creates buying opportunities for others.  The burst of the dotcom
bubble in 2000 created a similar buying opportunity for astute domain
owners.  Keep your eyes open in the next few months, and you may find
some real domain bargains.

[10/1 – correction made to accurately reflect $3,000,000 sold in live auction in 2008]