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The financial climate for domain names
October 1, 2008 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.
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.
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Contributor's Note
Leonard Holmes is a clinical psychologist and domain professional who also reviews domain parking and domain monetization services.
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Comparing domain parking services
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