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07|19|2007 10:47 am EDT

Why Domainers Sell… and what do they do with all that cash?

by Richard Lau in Categories: Domain Sales, Editorial

Auction Hammer by Marcelo GerpeIn light of the recent record-setting domain Auction held by Moniker in NYC at the TRAFFIC Conference, a question that comes to mind is “If domains are all they are talked up to be, why are domainers selling?”

The answer it seems is no more unique than the reasons for selling other investment assets. But for many, the primary reason is that the value of their domain holdings have appreciated to the point that their portfolio of personal net worth is too heavily weighted in domain names. The age of the domain owner certainly plays a part, as discussions with young domainers (up to 30 years old) indicates that a heavy holding (up to 100%) in terms of their Assets is held in domains. Any Financial Advisor will tell you that you need to be diversified. Cash, Bonds, Stocks, Mutual Funds, Real Estate and 401k/RRSP are the typical holdings.

Pile of Money by stephen hyunSo, as domain owners wish to diversify, after having seen their domain investment grow, they sell to take the cash off the table and usually invest it into non-domain holdings. Of course, many domainers take a look at the “real world” and find that there are just too many opportunities to be had in the domain marketplace, and return some or all of their recent cash back into domains.

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3 Comments

Tom Twitty

July 23, 2007 @ 4:34 pm EDT

I agree that assets in domain names have reached the point where many owners will start selling prime names rather than develop sites. I myself have a bevy of prime .com domains that we are considering selling off so we can head for the hills. The Internet Developing areana has become to complicated for us old retired aged guys to handle.

domainerscity

September 1, 2007 @ 3:05 pm EDT

Great article. I find it very helpful. Oh, just in case you want to give your site more coverage and exposure, I will suggest you give DomainersCity.com a try. It is the first social networking site for domainers and website owners.

The site provides the following features:

* Promote your domains and sites and build lasting network relationship
* Create custom profile and web page for your sites and domains
* Blog about your sites and domains
* Share ideas and contacts with other members
* Communicate and interact with other domainers from around the world
* Stay in touch with changing domains rules and regulations.
* Advertise and publish your your services in the marketplace section for free
* Join networking groups and create your own private Group
* The site is 100% free.

Frank Michlick

September 1, 2007 @ 7:33 pm EDT

We’ll let it pass this time, but even after removing 3 of the links to your site from your comment it still looks like spam. It would have been more appropriate contacting us and hoping for us to cover your site. I doubt that we are the ones needing more “exposure and coverage” at this point.

/Frank

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