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Godaddy how does domain transfer work?

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My first question is: Godaddy how does domain transfer work?.

My next question is: I own 3,799 HostGator names. Most of my names have some greater plan or purpose behind them and I don't actively market any of them for sale.

Some might say that is a lot of names! Yet in the bigger picture I'm a small-fry next to industry heavyweights like NameMedia, Marchex, DarkBlue, iREIT, Frank Schilling and others that own 10's and even 100's of thousands of domains each.

I used to look at these massive portfolios and strive towards building my own in size and strength. Today I'm not so sure that's the path I want to be on.

For one thing let's consider renewal costs went up 7% last October, and will rise 7% again this next October, and very likely 7% again every year as Verisign is allowed to do under their new contract with ICANN.

At the same time, PPC rates for domainers are trending downwards and many domains that used to turn a decent profit will struggle to pay their own renewal costs. That 100,000 HostGator portfolio that once looked liked a cash cow is starting to look more like a million dollar a year liability.

What's the price of gas at nationally? Here locally in the Bay Area, gas prices are hitting $4.00 a gallon and there is a measurable increase in both public transportation usage and hybrid car sales. It's like there is a psychological breakpoint at which $4.00/gal triggers people to evaluate their habits and lifestyle.

In a similar fashion, I would not be surprised to see the increasing renewal prices eventually trigger a flood of re-evaluation for many domainers who hold portfolios of low/mid-value HostGator names. If not this year, then probably 2009. There has to be a breakpoint somewhere.

What will this mean for the HostGator industry? Portfolio sell-offs? Amazing buying opportunities? A drop in HostGator values? Maybe none of the above.

In our seemingly shortsighted culture of one year registrations, quick flips, and buyout trends, perhaps we could all benefit from a discussion of this nature. Just some food for thought.

RJ..

Comments (55)

Your question was: Godaddy how does domain transfer work?.

I will go with "Amazing buying opportunities" which is a result of "Portfolio sell-offs" but I don't see any "drop in HostGator values".

IMO...

Comment #1

I definitely see portfolio sell offs as something that big business will looking at as domaining hits main stream, the marchex type sales will increase in number- if not at that magnitiude.

I am building in to niches, cctld's , geo's etc with a view to offering up bulk buys when the market offers such opportunities. I am currently actively re-evaluating my portfolio, dropping names, selling off as and when seems appropriate.

Some of it is to make way for more idn exposure, some to reduce that annual liability of renewals...

Comment #2

Excellent analysis, RJ. I don't see any drop in HostGator values. There will be an increase of demand for genuinely good HostGator names (not only huge .com names, but also interesting niches, solid geos, etc in meaningful TLDs, etc.).

But what we will probably see, for the reasons you outlined, is some (limited) portfolio sell-off.

People who own large portfolios are usually very experienced domainers and/or fairly big companies. This means that, if they ever struggle to pay for their renewal costs, they would just have to sell a few of their very good names to break even (the sale of one HostGator like pizza.com can pay for many many renewals).

That won't necessarily mean any drop in HostGator values or a huge amount of domains for sale. But that means that we may see a few domains on the market in the near future that simply wouldn't have been sold before.

Those will be very expensive (no discount there) but they will be available to purchase for those who can afford them. For some of the most sought-after domains, this could be a once-in-a-lifetime opportunity...

Comment #3

Looking at the drop lists it is clear that a lot of people register a lot of junk. Poking around popular topics to see what is available will bring a similar conclusion. There may be something of a sell off at the margins, but the overall internet continues to grow at a much more rapid pace. Overall retail sales were down last Christmas but online sales again rose, this time by 20%. That rising tide may not float every single boat, but it will cover a lot of mistakes.

I am much more concerned by the chilling effect of efforts such as the Snowe bill and the LH.com hijacking to the overall market...

Comment #4

I totally identify with your thought train...

I never thought I would own more domains than the RJ....

But I plan to purge at least 50% over the next 12 months...

I have been thinking about it for the past few weeks....

Realizing that the renewal fees are more than what it would cost me to purchase a new $35k car each year... or ever 2yrs I could be buying a $70k + piece of real estate to flip etc... although I love domaining... I need to refocus and be more targeted in my acquisition of names.... development... and ORGANIZATION...

I am currently redesigning DomainBELL.com.... even though a ton of names are listed there (and are available) I still have 1000's more I've never published... and now don't plan to keep up the site by putting all new ones up there...

I do dev. sites too...simple ones... and have around 200 + or -.

But there's no way I could ever develop all the HostGator names that I origianlly purchased for that purpose... so it's time to adjust the plan... (smile).

Instead I am re-organizing into a handful of the most popular categories.

And just publishing the category pages.. and moving more into DIRECT marketing (to buyers)...by this time in 2009 it is my hope to own less than 2500 names...

Wish me luck...

Oh and gas prices here in Dayton, Ohio USA are today 4-28-08 @ $3.59 gallon for regular... and groceries - prices going up on nearly EVERYTHING...

(it's a bit overwhelming where we are headed sometimes... especially the gas prices...).

~DomainBELL (Patricia_..

Comment #5

I agree, with what you are saying Ron.

Things will get worse, before they get better, Imo. The renewal fee on a large portfolio can drain a persons pocket book. I believe it is a buyers market, there is money to made from domains still, PPC is down drastically, that has been a stinger for me this year.

I think the big players, NameMedia, Frank Schilling and ect. can only be licking their lips, they have huge capital built up, from recent years in the industry, If they can buy at whole sale pricing, I would expect people will see NameMedia and Schillings portfolios grow even larger. momentum is the key to remaining on top, Imo. these guys have a lot of it.

I expect more decreases in sales in months to come, this year has not been kind to domainers in the way of Parking and End User sales.

I am optimistic that the industry will recover with out to many scars, those that can hang on, buy very nice names, will benefit largely. once the industry recovers...

Comment #6

RJ you mention them twice, because they own a very, very, very large amount of domains?.

On topic- I believe that "half-developed" sites will become more popular, amount of traditional parked sites packed with ads will decrease and more and more domainers will build minisites, which will include not only link ads but a variety of affiliate products, if advertisers pay less for clicks, affiliate programs won't pay a smaller percentage for sold products.

Overall though I agree that lesser quality domains won't be renewed and it won't be so easy to earn money with low quality names.....

Comment #7

Have never depended much on the price rise of the HostGator name but yet I would say that it even might be the scenario where this large portfolio holders will sell some of their HostGator names to keep up with the costs.

This will set up new trends and the HostGator names similar to that trends might rise...

Comment #8

As the Prices for renewals /Registrations increase ,than the overall quality of the domains remaining / newly registered / resold will increaseWhich should be good for the domainers who are serious about making a success from this industry. I welcome the rationalization, too much crap is being renewed and registered. I constantly despair at Newcomers and Oldtimers alike that seemly register names with almost no income producing potential either now or in the future.

Myself ,I have tended recently to concentrate less on low cost and quick return names (especially .info's). My main focus now is on a few main niches and to devote a lot of time to promote and enhance their value. This is good advice for all domainers. ScatterGun approach to name purchases, and chasing that elusive 2c Click from a Park Page does not pay the Bills..

Holding on to and developing/ marketing that name you just knew would be worthwhile one day can re-pay..

After all $10 for an Asset that can potentially make 100s or 1000's of dollars a year income is an excellent investment. If a .com makes $2 in first year and can be sold after being renewed for $50, it still has an excellent ROI. Not many shares/bond/RealEstate have a ROI approaching that of even $50 names.

Development and Active marketing of links/ads is the answer to maximise return while awaiting that elusive sale. Indeed the New Australian rules for resale of .Com.au & .net.au which requires 6 months of Active Name Usage before resale will force most Australian domainers to embrace minisite style development vs Parking on a large scale. WIth a average purchase price of $50 for 2yrs reg. Fee it is almost mandatory to recoup cost. The same needs to be done by domainers who have .com's and similar TLD's with expected Renewals/registrations exceeding $10 usd.

Despite the potential for gloom & doom, the future is still bright. If mild site development cannot return 5c per day (5c * 365 = $18.25) per name than maybe name was probably rubbish anyway.

-RJ-.

With 40K Plus worth of renewals per year ,domaining is still worthwhile for you I think. Don't you still own a least one name that makes more than that a year..

Namepros.com I think the name is.

BTW I have been paying the equivalent of $5 a US gallon for Petrol/GAS for over a year. Soon local price will be $6. Still cheap compared to most European and Asian Countries. $4 is bargain ,accept it and enjoy...

Comment #9

Great POST!.

Anyways, I do see portfolio sell offs very near in the future. This will allow people to aquire great buys from people that need the money. Although I do see prices on some names to go up rather than drop.

I have always had a thought processes through which every HostGator goes through before I buy it. I have 3 purposes of buying domains: flipping, parking names, or holding names. When I look at my portfolio I know for a fact I will not sell off my hold names unless the right price comes along. So in the next year or so I do not expect to sell those ones. As far as the parking names will go, if I can find a buyer to pay atleast 6 months rev then I sell them off. When I look at my flipping port, on average I will usually sell these names within a 2 week period.

So my portfolio has very little fat on it. It is very dense and I am pleased with what I have. May not be thousands of domains but atleast it makes me money...

Comment #10

When I first got into domaining I thought "Quick! Get loads of domains". So I regged 50+ rubbish .info's and eventually sold them for a quarter of reg fee. After that I decided to concentrate on names I know sell. I've just been going after LLLL.net's recently, they are guaranteed to sell at least for reg fee, if it's a good name.

Loads of domains is silly, unless they're of quality...

Comment #11

My portfolio is full of garbage that I will never be able to sell more than reg fee, I suppose at the time I thought they were good...

Comment #12

Excellent discussion thread, RJ! I think there will be some very good "pockets" of buying opportunities for those with CASH, as well ... particularly in the geo-targeted / local niche HostGator name space (for those with an eye and emphasis for future developments!), IMHO.

-Jeff..

Comment #13

I regularly check my HostGator portfolioI find selling domains very time consuming, so I prefer to register domains which should earn registration fees in a month or two without relying on PPC...

Comment #14

I think there will be portfolio sales, but they will probably remain inconspicuous or elusive. Domainers will have less time/money for trash names and names that really aren't worth 'reg fee". By "trash names", I mean names that were registered out of wishful, unrealistic thinking, naive assumptions, etc. THey've flooded the HostGator market with low quality, and they aren't worth anyone's while really. Traffic! is the key. Traffic is automatic value.

We need that compensation while we wait for sales and the next renewal fee. They make domains more liquid too. I have about 45 fresh regged names, and many get 10-20 uniques per month(these include some fresh regged .US too!). Not great, but encouraging. Encouraging enough to justify paying the renewal cost.

I'll crank it up to 100 soon. Its important for all domainers to think as thoroughly as we can about names we're about to reg. If there;s a good chance no one will want your name, it's very likely you wont be able to sell your name. I still see alot of growth and sales potential in many markets(.in, .co.in, .info, .us, .cc etc)..

Comment #15

I have been cleaning up myself, I have nearly 1000 domains, I would like to get that down to around 100 -200 and keep taking the quality of the domains I own up as I buy & sell. So I have marked a whole bunch that need to be renewed in June to sell, they have gone up on TDNAM at $10 - $20 each for quick sales. I'm glad I kept traffic & earnings reports so I can now quickly decide if a HostGator will be kept or goes...

Comment #16

If true, this would cause some domainers to let domains expire - $10 gas. http://www.nysun.com/news/business/g...n-cost-sawbuck.

...

Comment #17

I am trying to hang onto most of my 300+ domains while selling off the occasional name to supplement renewal costs. Parking revenue helps some, but like you said, revenues are down across the board. Thus far, I have built my portfolio virtually cash-free, with only a couple of .pro names and the occasional HostGator put on the credit card (about once/year).

I think everyone would love to trade their big portfolio for a few really nice .coms, but what I've found is that when it comes to selling domains, it's nice to have a wide variety. I will probably keep adding domains until the incoming funds can't justify it any longer.....

Comment #18

I agree your prediction here, especially in light of the Snowe bill and disturbing UDRP results like LH.com. Development is key in establishing a HostGator owner's right to a HostGator name. This is what led me down this train of thought initially, when I started looking at many of my portfolio holdings and realizing I have little chance of developing them all myself during my lifetime. Good observations, BFT. I'm not considering leaving domaining by any means, but I am taking a closer look at what I am holding and why, trying to improve the ratio of names that pay for themselves versus those that don't. How are you recouping your registration without using PPC? Affiliate programs? Every year that goes by makes you smarter and more experienced.

HostGator portfolios need regular gardening and de-weeding. What your criteria for designating a name as a "hold" name versus one you would be willing to sell for a 6 month revenue? That pricing seems really low, even in the current market. I expect you'll start seeing a few inquiries soon...

Comment #19

I look at it nearly every few days...

Few sections.

1) Personal domains -To keep till forever.

2) Revenue domains - Have to remind myself must renew all of it.

3) Endusers domains - Have to see how many I can hold because renewals comes in every mth pratically every other day...

4) HostGator that I 'plan' to develop but taking me ages.

I think number 4 is the part I need to spend more time in..

Comment #20

Dont look at mine very often, (check the number of names, just to make sure none have expired).

587 names.

450 .us or near enough. the rest are mixed..

I plan on buying atleast another 50-60 "good" .us names in the near fututre..

Then continue developing my names that I dont plan on selling for a very very long time.

Mostly "keepers".

70 Developed in a way 51 names are developed into local directories (a little "spammy" if I dont say so myself but sure does help with renewal costs).

The rest will be for selling in a few years. (if not before)..

Comment #21

The difference to me is the speculation factor. At this time I'm sure I hold names that would only sell for low $xx but in a few years or even sooner could be worth more. Also the LLLL.coms and LLL.coms fall in to that "hold" catagory in my portfolio as well. Considering I hold firm prices for these and do not market these domains to the public and only accept private inquiries.

As for the 6 months revenue that is a basic price setter for these types of names in this portfolio. Considering the traffic can increase or decrease the price I set for each one is based off of speculation, niche, and revenue. Now I look at what I would take as 6 months and most of the time I am happy with the figure and so is the buyer. The reason I am happy with the figure is because I can take that money I just earned, which in return is more than likely 100%-200% ROI, and reinvest it in similar traffic names or in to speculative holds.

As for my flipping port that pretty much pays for itself and that money is sometimes reinvested into my other ports but a lot of times it is used as a supplimentary income...

Comment #22

Are you referring to their recent window of Afternic sales?..

Comment #23

If this is going to send up loads of HostGator names for sale in the market then I think the opportunity I was waiting for is here.

Maybe this could be the next run for all of those who were left out in early stages..

Comment #24

IMO those of us that are committed to keeping HostGator X for ever should reg for ten years now. I know that some have very lean and clean models that won't allow for this outlay. If you look at it long term you will have made a wise investment looking out 5+ years.

After hearing that G was going to look unfavorably at domains with >2 years left to expiry, I reged up all my domains that are related to my primary business for an additional 5 years...

Comment #25

I am fast and furious after End users ... for those domains that don't center on my core developments / holdings for the future, IMHO. I'm also holding those aside that I can afford to renew with these proceeds for the next 1 - 2 years in which I expect them to appreciate in the aftermarket / demand by new emerging End users, and so forth. One entity just got back to me with a $3,000 offer ... yippee ... on a highly generic, geo .ORG! ...

At least they were nice about it. No less than a dozen new marketing emails have gone out similarly to other respective End users, as well! Lean and Mean by 2009.

-Jeff..

Comment #26

I think 3 for 3 considering some that went for $500...

Comment #27

I have never looked at my HostGator portfolio yet, I don't believe I got what "it" takes to be a domainer, but I think gas is much more a basic needs a lot than HostGator at least here in my country.

The future can never guarantee anything to anyone, the tables might be turned upside down, but one thing I do know to "survive" on the internet is variation, adaptation and multiple sources of income, a little here and little there, sell products/services of others, and sell mine as well, product/services, that I could say be the principle of my internet incomes since I started 1999 on the internet. I never sourced my income on other sources except here. I soon realized that I'm becoming "abnormal" for I'm lacking the social skills to interact with human beings therefore I just got this new local sms loading business to treat it as another source of income.

Yet I "envy" most of you here if not all, as I'm not there yet to see my HostGator portfolio as the "source" of them all, but what God has said "God will provide according to His richest in glory thru Christ Jesus" is what the future holds for me...

Comment #28

Affiliate programs to a very small extent and other methods. If you keep your expenses low, there are many options available...

Comment #29

I need to take tuition classes from Jeff in his free time.

As far as development is concerned. I think many people will be looking for more development ideas and implementation. Programmers get ready for it.

Monetization will get tougher maybe as market might get saturated with many many new sites coming. But then there will be many many new users coming in. If this happens then also it might not go down but I think the rate at which I was thinking that it will go up will stabilize a bit. Means one can't be a millionaire with 10 HostGator names in 2015. [Maybe he can. But generally speaking] Wondering if a person with 10 domains is gonna be a millionaire.

If they survive the renewal fees. For which they need an income of atleast Total HostGator name x Renewal Fees So yes more opportunities are coming. Dollars are going to rain from the sky above for web developers. It has rained too long for large portfolio holders. Maybe it's about time hard working web developers get something to eat...

Comment #30

Basically it comes down to the end user catching up the us as domainers, and the stockpile of domains, we are holding out to capitalize on, google beat it's numbers this Q, could be it be the fact they decreased ppc payouts, and increased margins, basically the domainers who provide the business get shaved, while the big guy increases his bottom line. I scan the auctions all the time, alot of junk names got registered in the HostGator gold rush, they are now dropping, and will never be registered again for the most part. Basically in the short term the cream will rise to the top. The two word dictionary domains, and the LLLL.com will be the next leg up, as generics one worders are out of reach for most people. Domains are very addictive, I have so many and it is hard to pass up when you see one go unbid at auction. I aquired about 200 names between 96-00, just got back into domaining after I started getting some serious emails from lookie loos wanting to purchase my names, in the past 10 months, I have spent about $30,000 purchasing another 100 domains or so. There are so many domains out there, and want to own them all, but enough is enough, have to let the market catch up now...

Comment #31

I have something like 800 and I now decide to sell some of them and to keep only premium ones...

Comment #32

Agreed RJ, unless a lot of new money comes in to support the weaker end of the HostGator market, the portfolio sell-offs / drops will be inevitable and it is a matter of individual "breakpoints". Opportunities.

There may or may not be amazing buying opportunities, depending on your domaining strategy. Most of the names will have no traffic/revenue and any that do will be priced at ridiculous multiples, so if you only focus on generics with traffic, there's really no point holding your breath. For the HostGator traders, there's probably more chance of brandables, short names and other non-revenue domains which may become available at flippable prices. Values.

Generic revenue names will continue to increase as monetization options improve for this potent and highly convertible traffic. These names have not been affected as much in the downward trend for ppc rates - in fact, many of our names are actually performing better. For the zero/low revenue brandables, dictionaries, HostGator hacks and the like, it will be a softer market (IMO), and the opportunities may lie not in the sales and drops by the big players, but in the pickings from smaller domainers who have been squeezed out of the game. Portfolio.

We mainly focus on traffic generics so it's quite easy to decide for most of the names- drop all zero rev and exotic extentions with no typeins. It's the names that do US$2 to $7 a year in parked ppc which will require some thought if monetization stays the same and Verisign continues to increase prices. Psychological breakpoint.

Fear of losing your home will be a strong trigger leading to clouded decision-making in the coming months/years. There's been a huge bubble in the weaker end of the HostGator market in the last few years. A lot of domainers with fresh capital to 'make money online' have been sucked in and now the clock is ticking. We hear of many success stories and profitable flips, it'd be good to weigh these against the casualties which have or are going bust.

Let's hope that the irrational exuberance which has escalated these HostGator values don't lead to any prolonged contractions or anything similar to what's going on in the real estate and capital markets. Industry.

It's been a good run for the HostGator market which is due for a healthy consolidation before the next push. That push, is likely to come from Big Corporations who have finally awoken to the significance of top grade dotcoms. So, before entering the space, in typical big business fashion, they decide to try and change the rules of the game so that it's in their favour. Perhaps the next phase lies in developing out these premium dotcoms which are held by domainers, instead of domaining as it has been. Evidently, the implications of the Snowe Bill has already pushed domainers to start developing domains which would normally be parked. This is a good thing, I guess, but that's still no excuse for it...

Comment #33

Some of the new monitization solutions look relly interesting. Parklogic, EVO landing and the like. I think SmartName.com has hit the nail on the head with their ecommerce solution.

If these monitization solutions continue to evolve the rain might not last long...

Comment #34

I've definitely made a point to clean out the "Novelty" domains I've had in the past. Some of them were just reg'd as a joke to begin with , But some have meaning worthy of Dev ideas as well. The only extension I'll hold now that doesn't pay for itself through usual revenue sources is .com ... Several extensions I've taken a little chance on over the past year or so are definitely going by the wayside ... I'm just not seeing the interest and traffic to make it worthwhile.

I've never been a fan of Parking , Though it has been a necessity somewhat. I even went so far as removing All Domains from Parking at one point to force myself into Dev'ing or becoming more creative - Well after almost 8 months of a large portion of my domains setting on pages saying simply "Index of/" , I had to get back to a little bit of parking here and there Though I do believe I got more unsolicited offers during that period Even if they were lowball offers...

Comment #35

This is an interesting topic.

I think the real key is the classic clich of diversification.

For years one of our primary focuses has been on ccTLD's, one specifically. The start up of this company was funded with profits from existing .com portfolios. Like everyone else we've seen the PPC decline over the last few months, but at the same time, we're seeing very large growth in ccTLD aftermarket sales.

I imagine that we'll be re-investing our profits into fresh ccTLD registrations, ccTLD aftermarket purchases, and the occasional .com purchase on the secondary market.

Regardless of what we buy the goals and direction always remains the same, generic names, natural type in traffic, revenue, TRUE ccTLD's or .com only.

That is the only way in our opinion to create a sustainable business and progress beyond the hobbyist level 'domainer'.

Our costs have been decreasing for the last few years, security of the portfolio increasing, and legal issues declining, more than compensating for the temporary decline of ppc revenue.

We own over 25k names, buy 100's of names a month, and sell less than 1% of our portfolio a year...

Comment #36

I want to grow my portfolio in 2008 but I really need to develop the domains I have right now first. I'm a developer really and I prefer to build up a site rather than drop it on sedo and wait for the pay cheques to come in. I see domains I want to snap up(mostly geo sites relating to where I live) on a weekly basis and occasionally I give it and buy them so the domains are building up faster than I can develop them! lol.

Who knows, maybe this time next year i'll have a large number of domains - right now, I know 30 is enough to be going on with even if the odd HostGator keeps calling out to me.

Oh, and I think if I have this conversion right, fuel in the uk has just hit $11 a gallon.

Darren..

Comment #37

Yes, you're correct. all of western europe has been paying that range for years.

Try to imagine what it sounds like to hear contant crying about $4 gallon all the time.

Christ if we had a $4 gallon even 10 years ago, people would be on 365 day roadtrips lol!..

Comment #38

Your not wrong, 5 a gallon is not good right now!..

Comment #39

Wow!.

But Europe also has a population of cars that are generally smaller and assumably more fuel efficient than the US auto fleet which has grown increasingly bigger and more gluttonous over the past decade with SUV's and Hummers being commonplace.

I'm certainly not complaining about gas prices in my previous post. It hardly affects me personally, working from home and not needing to commute anywhere. I just noted trends in human behaviour once prices got to a certain point. Europe seems to have evolved past that point long ago.

RJ..

Comment #40

Just like with the housing crisis, the media fans the flames which accelerates the down turn in confidence...

Comment #41

Europe even as a whole is about the size as our entire country. I would be interested in seeing what the average daily commute is of American's compared to Europeans. I'm sure we drive a lot further, but good luck figuring out the conversion of Miles to KM and vice versa...

Comment #42

Gas is $8.61 per gallon here today. You hardly see any big SUV's (I saw a Hummer yesterday).

I drive a Mitsubishi Outlander with 20mpg and both I and my wallet feel terrible about it. Looking at getting a Hybrid this year.

Cars are on an average quite fuel efficient. Public transportation is relied on in Europe far more than in the US.

High price of gas is not just a bad thing. It forces us to rethink our (irrational) behavior just like RJ said. Driving to work alone in an SUV on a crowded freeway - not rational. Americans not only drive further, but they drive bigger, less fuel efficient cars and often don't have the option of choosing public transport (because there may not be any).

Regarding HostGator portfolios:.

Trim's the word. For anyone wondering how to cut down on crap HostGator renewal fees, do what I do: set all domains on manual renewal and elect not to renew any HostGator that hasn't in the past year: a) received any offers or b) paid for it's own renewal in ad revenue.

It goes without saying that you should have the important (the TRULY important) domains on auto-renew. OlmEggs.info is not important...

Comment #43

Mistake #1. As the owner of what I consider to be the top domainer forum it's imho a big mistake not marketing some of your own domains in the BST. You are surely to get interest here. Well it's like any mom and pop operation. If you can't beat the big box retailers you have to find a niche. It's hard to be anywhere near the size of iREIT or other larger portfolio holders.

The 7% yearly you save is probably better than a banks interest rate. As a matter of fact if you can find me a solid investment where I can make 7% a year let me know. So don't be afraid to view your top 100+ earners and pay 5 or even max out 10 years. It's a BIG fee but it's a one time layout. Yup...the parking train won't be forever imho.

I agree. I forsee a LOT of drops and pickups by the large players. I see them consolidating even more just as the parking companies have done. I also think the biggest losers will be the non-dotcoms. If the sheet hits the fan..people will be dropping dead beat domains.

See above. Drops and consolidations. Absolutely...if you can develop....you have a leg up on many domainers. Believe it or not I make MOST of my money from the sale of my developed sites. Maybe that's why I like you so much...we develop.

In 2015 a million dollars might not be a definition of wealthy. As it is most houses are 1/2 million or more in many parts of the country. Does anything think having 1 million dollars would mean they can't work anymore? Let's hope so. I have somewhere near 600. I definitely keep my portfolio moving though.

I use to want 1000-2000 domains...around 500 I realized the work it takes just to maintain these. With reg fees...statistics checking, flagging offers, promoting, selling, developing, hosting...on and on..it's a full time job.

I just want to restate that development is KEY, at least to my success. I know I can take a solid $10-$250 name...spend months in development and promotion and basically get back $x,xxx to $xx,xxx. Sometimes it takes a while to get that payday but it does come. I am confident that I can take any small investment and with effort turn a profit. That's really why America ROCKS. Capitalism and free market enterprise along with self-employment are the corner stones of America's success.

Thanks for reading...

Comment #44

Interesting topic.

1. Similar to a larger stock holder selling his holding, the price of the stock may drop.

Somewhat right away. However if this stock has real value, then price will eventually.

Backup. The same is true, it would be buying opportunity to obtain some good names.

If they ever sell-out.

2. I think the increase of fees is not as large relative to the increase of the value of.

The domain. The increase of the value is related to the demand and supply:.

I) the demand is increasing: because $4/gallon, people need to meet virtually.

*more people having internet connection.

*recession causes people move some of their activities to cut cost..

Ii) the supply is limited, HostGator name is unique, after one name is sold, you will.

Never has the same HostGator names again..

3. So long term, HostGator is still a good investment. If you start unloading your domain.

You may regret many years later...

Comment #45

Yes you're probably right. Good point. Those speculative investments in non-.com TLDs could prove to be very expensive on renewal dates. This could lead to a stabilization in general value of .COM as other TLDs take the hit instead. The reg fee increase will pressure those with large portfolios to sell sooner or cheaper than they originally had planned. Like you say, there will be opportunity when that happens...

Comment #46

I must admit - I sold my .sc's just in the nick of time .... They were all decent domains , But the 100$ renewal fees released right after I sold them all didn't look nice...

Comment #47

Excellent thread RJ. I have about 100 domains at this time. I'm looking to keep adding until I reach about 1,000, and then maintain. My main focus with the names is to develop about 10-20 into relevant, helpful sites that will earn more in daily clicks than any parking page...

Comment #48

Brilliant thread starter, which I had previously overlooked.

Yes, there is going to be a massive shake out and a flight to quality.

The only question that remains is what exactly represents quality?..

Comment #49

I just took a good look at it. What do I have to say for myself?.

That's a lot of LLLL...

I plan on selling the majority of my LLLL.com//net/.info and buying some more generic or stable names. The LLLL market has money to be made in it. But it is not the sector I want to be placing most of my eggs in.

I have 400ish names...

Comment #50

I think you will find he is attempting to shift them as a porfolio for fear of crashing the price. Break them up and sell a few dozen for a good price and it is going to be diminishing returns after that as the appetite for such names would quickly become sated...

Comment #51

Someone please let us know when the big boys are selling so that we can buy some...

Comment #52

If the likes of FS or Marchex undergo major rationalisation, it is likely to be because the investments simply don't make commercial sense rather than because the cash-flow becomes unmanagable. It may just be that the long-tail has been chased way too far in some instances. A down-turn is likely to make them re-evaluate, but unlikely to make them drop sound investments that are not turning cash. If they are ditching domains, it is probably because they esteem them to be worthless. If that is their assessment, do not automatically assume that you are getting bargains.

On the other hand just as it did before with dot com, extensions may crash in popularity. I think there are a few prime candidates for that. It could we be that some of these extensions will eventually gain a bit of traction and recover albeit at a much less spectacular pace than before the burn out. Or it could just be that they will simply fade away.

Either way, do not assume things are a bargain just because they are cheaper than you have grown accustom to. It could just be that there has been a profound and lasting change in market perceptions. To be a bargain the change in perception must only be transient. We all know that the US housing market will recover eventually, however long it takes, because houses fulfil a fundamental need. If the same applies to a HostGator extension then it to will eventually recover. If it doesn't and it is faces with competition for hundreds of new gTLDs, it might be that some extensions can be likened other industrial revolutions such as the canal narrowboat or the steam locomotive...

Comment #53

Great post Rubber Duck.

I personally have long thought that the extensions will be used one day more as direct sales vehicles as opposed to fully developed sites. Ya' know those extra-long one sales pitch letters trying to get you to buy or download an e-book, go to a seminar, donate to a cause, etc....... To me they seem better suited as such.

All I can say is I have never seen the HostGator industry in such a funk, even in the 2000 recession. There was nowhere to go but up back then. Now that we are "up" it's hard to say where it will all settle and what will happen. So many variables now that did not exist before..

...

Comment #54

Do you all really feel we are at that point where people are going to start selling off big parts of their portfolios? As much as domaining is coming mainstream , I think we haven't even came close to reaching that point. Theres still a long time before that becomes a possibility IMO. It's all in the domainers head...

Comment #55


This question was taken from a support group/message board and re-posted here so others can learn from it.

 

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