Increase the value of the domain name investment

[Bacon Farmer]

Ha ha Gerry got the biggest social media web 2.0 smack down ever. That'll teach him to have a shitty web strategy and get in the way of consumer anger over Aus v net pricing.

Yeah limits suck but so does hoarding. There's no perfect solution here. I'm happy if we have a few more years before joe public catches on. Even in the last year prices have gone off.

 

[Lucas]

A few weeks ago I had a company from Europe offer me $2000 for a domain which I would be struggling to sell for $200 locally. I agreed and when I asked them for an ABN and explained the Aussie domain name regulations I never heard from them again

So on the one hand there is no doubt that opening up .au to international users would greatly increase the value of most of our portfolios.

On the other hand opening up .au internationally would also make it much harder to get good domains at a reasonable price. Whether or not it would decrease the 'quality' of .au domain content is debatable I think. Alot of good au domains that are now parked might get reasonable offers from overseas businesses and get developed with good websites. However if some of the big US / European domain companies started buying every Aussie domain they could get their hands on, small fry (like me) would just about be forced out of the game..

Also it is worth noting that overseas companies can already register Aussie domain names if they are "a foreign company licensed to trade in Australia" (which I am guessing is not cheap to do).

 

[lmb]

Limits on the number of domain names that can be owned is unworkable. It would just result in multiple holding entities and achieve nothing.

If domain portfolio owners want to increase the value of their portfolio, there is only one generic reliable way to do that - grow the market. So what does that mean?

There are two parts to growing a market - growing supply and growing demand. to ensure portfolio values increase, you have to grow both parts in some sort of balance. Supply is growing systematically - IOW, every day, more and more .au names expire, get registered and are available for trading. So how do we grow demand?

Growing demand means more buyers paying higher prices. And this is the real issue, because for many domainers buying expired and aftermarket names, more buyers is more competition and more cost in growing a portfolio. but that mindset needs to change, because that is exactly what will enhance the value of every portfolio. it is in every domainer or portfolio owners interest to spread the word as widely as possible, to get as many people interested in the domain trading as possible, because that will push prices up towards their inherent value quicker and thereby increase your portfolio value quickest. it seems counter-intuitive, because we all want to buy low and sell high, but when you think about it, to sell high you need high prices, and we're all in this particular market early, so like all early stage markets we carry the higher risk, but can expect the higher reward.

So if you want your domain portfolio to increase rapidly in value, tell everyone you can to get involved in domain trading.

 

[djuqa]

Best way to increase the value of your aussie names. STOP talking down their value.

Aussie Names can be valued as high or even higher than their .com equivalent.

Stop bickering over the need for limits and controls.

A free Market will allow the names to achieve their rightful place as some of the most desirable and sought after ccTLDs.

 

[cherrytron]

There are two parts to growing a market - growing supply and growing demand. to ensure portfolio values increase, you have to grow both parts in some sort of balance.

And here I was thinking that as supply decreases, demand (prices) goes up.

For instance, I assume that if the top level .au namespace was released, then prices would go down for while - maybe not in the absolute premium market, but an average punter who wants a second tier, 2 or 3 word name isn't going to pay several hundred bucks for the .com.au when he can just register the equivalent direct.au at retail price.

Are you suggesting that "growing supply" also means the top level namespace or only the secondary/drop market as rules are relaxed to encourage trade (like the 6 month thing) etc?

 

[lmb]

And here I was thinking that as supply decreases, demand (prices) goes up.

For instance, I assume that if the top level .au namespace was released, then prices would go down for while - maybe not in the absolute premium market, but an average punter who wants a second tier, 2 or 3 word name isn't going to pay several hundred bucks for the .com.au when he can just register the equivalent direct.au at retail price.

Are you suggesting that "growing supply" also means the top level namespace or only the secondary/drop market as rules are relaxed to encourage trade (like the 6 month thing) etc?

There's a difference between growing a market and growing price. Sure, if you restrict supply, price can go up, but this is an immature market and domains don't clear at their inherent value. I know that because the spreads between proxy bids (the price a buyer is willing to pay) and winning bids is huge. IOW, buyers are paying far less than they are willing to pay, because there is little competition. The market is immature, there are insufficient buyers.

The supply side is fine - there are plenty of names available for sale and expiring on a daily basis. There is insufficient demand - too few buyers. To ensure the market clears at close to the implied market price (the proxy bid prices) there needs to be more competition.

Now few people actually like competition despite the fact that we all know competition is good for markets. My point is that if you want to get the best price for a domain you will try to sell in the future, your best bet is to get as many buyers into the market NOW - they will drive prices up across the board, increasing the value of all your names and be there to pay a big price when you're ready to sell.

Its a classic early market strategy: get in early, buy all the good stuff you can, get as many people as possible to enter the market and then sell high.

The British aristocracy used to do this very effectively in the art market. You would "discover" an artist (basically pick a struggling artist randomly), buy his work, introduce him to all you art buying buddies, trade amongst yourselves for a period at ever increasing prices, publicize these increasing prices and then when some mug outside your circle steps in, sell at an inflated rate. What actually happens is that you establish value and then let true market forces take over. That sort of activity was eventually regulated against - it became illegal in the way they effectively conned outsiders, but the principles apply - its better to increase the pool of buyers if you want to increase the value of the stock. And the best way to increase the pool of buyers is to tell everyone you know how much money you're making trading the stock.

 

[DomainNames]

Best way to increase the value of your aussie names. STOP talking down their value.

Aussie Names can be valued as high or even higher than their .com equivalent.

Stop bickering over the need for limits and controls.

A free Market will allow the names to achieve their rightful place as some of the most desirable and sought after ccTLDs.

You are 100% right! The fact is some people talk down the market

1. to buy more themselves
2. They are jealous and missed the domain gold rush and dont think there is any gold left to mine .. so they bad mouth it and try to feel better for their stupidity in not getting involved sooner


There is thousands of domains for sale at netfleet.com.au so no excuses people..Buy what you want now from curent owners and stop whinging some of you who complain there is a need for new extensions etc.. There will not be any new extension ( for commercial purposes) in Australia so stop dreaming foolishly some of you please or you will totally miss the boat

Also people there is HUGE money to be made in buying domains and building real websites and businesses around them! Dont just think or parking, monetising and selling the domain names only...thats just the start of how good this online industry can be for you if you do it right

 

[Ash]

There is thousands of domains for sale at netfleet.com.au so no excuses people..

Silly question... whereabouts?

I'm not familiar with netfleet having only seriously considered domaining in the last few weeks. I've been concentrating on hand reg's but would like to look at the aftermarket.

Should I be looking at the spotlight domain names, the domain auctions or is there a full list of names hidden on netfleet or drop somewhere that I can browse in depth?

Thanks.

Ash.

 

[davids]

Silly question... whereabouts?

Just have to hit the "Buy Domains" link on the Netfleet site: http://www.netfleet.com.au/buy-domains

Then it brings up a page with search and browse by category on it.

 

[lmb]

Silly question... whereabouts?


Ash.

you may also want to take a look at the daily expiring domain name auction (AKA the daily drop list)

http://www.netfleet.com.au/index.php?a=expiring

 

[Ash]

Thanks davids and lmb, i'll check it out.