Back in 2011 JohnChow.com, which happens to be one of my all-time favorite blogs (so I hope he doesn’t hate me for writing this post!), had a guest post on his site that declared that Domain Investing is dead. Fast-forward to 2015 and I think it’s incredibly safe to say that Andrew (the person who wrote the post) is eating his own words, or at least the way that he phrased it. What Andrew was saying in his article is that Domain Parking was dead, not Domain Investing. In that regard Andrew’s crystal ball wasn’t half bad, it’s no secret that Domain Parking has taken a huge hit (however I still know quite a few people making a small fortune parking), but Domain Investing is now a bigger market with more monster sales happening than ever before.
Just take a look at a few of the domain sales that have happened so far this year:
Porno.com – $8.8M
345.com – $800,000
NL.com – $575,000
QUA.com – $459,000
Rangers.com – $375,000
HomeCare.com – $350,000
Heika.com – $300,000
(Source – DNJournal.com)
This is just a small sample of the domain sales from this year but suffice it to say, millions of dollars in domain deals are happening every single month and it’s not slowing down, and prices aren’t dropping either. Domain Holdings, a top domain brokerage company is seeing a 40% y/y increase in sales and an average sale price of domains going up by 35% with average sales prices increasing from $36,757 to $49,522.
Domain Investors are also still buying domains for under $1,500 and flipping them for tens of thousands of dollars. Michael Berkens, the author of popular domain blog The Domains shared this on Twitter this past weekend:
What I haven’t even included in this discussion is the huge amount of revenue being generated by gTLD owners like Donuts who raised $200M from investors that see massive growth ahead for the domain industry years after Andrew wrote his post. Soon there will be more domain names on the market than ever before and what many think will be the next big domain gold rush.
So is Domain Investing dead? Did it die in 2011? Nope, Domain Investing is on fire, what is definitely dying is parking but this post seems to have confused these two activities as one in the same.