Whoever Declared Domain Investing Dead In 2011 Is Eating Their Words

Domain Investing Is Dead

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.

avg-domain-sale-q12015

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:

The Domains Sale

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.

{ 7 comments… add one }

  • Raymond Hackney May 19, 2015, 1:00 am

    John Chow did not say it, Andrew Knibbe who used to work for Flippa said it. It was a guest post.

    Reply
    • Morgan May 19, 2015, 7:56 am

      Good catch Ray! It fooled be since the post said it was by John Chow at the top, on my blog when a guest post is written it says by “Writer Name” so I assumed John had wrote it. Finally found the reference to the guest post at the bottom, glad you’re looking out here, just updated my post to reflect this! 🙂

      Reply
  • Taesong Chong May 19, 2015, 1:11 am

    Yes, You are right. All my domain friends are make a lot of money nowadays.

    Reply
  • Leonard Britt May 19, 2015, 7:57 am

    It would be interesting to know what percentage of individuals who invest in domain names actually manage to turn it into a profitable venture at a portfolio level (not just random sales).

    Reply
    • Morgan May 19, 2015, 10:15 pm

      Excellent point @Leonard and agreed. I know that Frank has shared this data in the past as has Mike Mann. I have always run my business with very high margins by only investing profits back into the business and I do know a number of other people who do the same. I think you’ve just inspired another post! 🙂

      Reply
  • Ben May 19, 2015, 9:01 am

    I agree with Leonard – portfolio level would be interesting, but I would be equally interested to hear what % of domains that are owned by investors generally are money losing vs. money making on domain name level and how that compared to a few years ago when parking yields were better? Trying to think about what % of portfolios may have become marginalized by parking revenue declines and have limited brandability that would make them worth holding in hopes of a sale.

    Reply
  • Bonin November 5, 2015, 6:58 am

    Domain investing is not dead, but is different business, is not like selling ice cream.

    There is still room to play even with a hand registered brandable domains, and if you looking for quick flip, you can make an average monthly salary.

    Premium .com’s are always a good investment, all you need is patience….

    Reply

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