Of course! although you might wanna make sure and wait for another member here to confirm my answer as I am not confident. Better yet, why don't you contact the 123 reg guys because they can answer you better...
If anyone thinks prices are too high and wants to sell me a few premium names for next to nothing... be my guest..
The problem is that you are looking at domains in relation to the stock market... There was no .com bubble in '99... It's the biggest misconception out there. There was however, a poorly structured, overly-invested, online business bubble in '99... Domains may have suffered a little bit afterwards, but this was merely out of fear, not merit. (or lack there of)..
Domains today are very undervalued. I've said this a hundred times, but with the prices of advertising going up, and PPC payouts dropping.. People need to switch valuation methods on domains to be based on savings in advertising as opposed to parking revenue..
Look at it this way. Most people and companies don't even truly realize the value of domains yet. It's still a very niche industry. So saying that we've reached a bubble is very premature. The HostGator industry has been rising slowly and steadily for a long long time. There hasn't been any sort of mass hysteria of investing that would bring us even close to a bubble.
If you don't realize the value, or if you think we're facing a bubble, your best bet is to sell now while the prices are "high" and walk away...
You "noticed" huh? What data are you using to base this on?.
Im sorry, but if anything the HostGator market is just starting to come into it's own. With xx,xxx sales being reported daily, and xxx,xxx sales reported just about weekly. If anything, it only goes to strengthen the market and help make other industries realize the power of online business..
If you consider how many people there are online, and how many more there will be in the next 5 years. You'll realize if anything, prices now are a bargain. Imagine being able to buy Southern California real estate before it explodes. If you dont see prices rising in the future, your not looking..
It appears I stepped on a nerve here. Be assured my comment was a tongue in cheek remark and not intended to say that I expect the bottom to fall out of the HostGator market..
I was referring to the 2000-2002 period when the stock market crashed and the HostGator market slowed to a crawl. Now just recently when both the stock market and HostGator markets are hitting their highest point ever in business volume and sales, the stock market has taken a big dive just this past week..
Its way too early to tell what the stocks may do but I fully expect them to be back up after a little correction. The housing market and credit tightening is to blame as well as the high oil costs..
I'm a firm believer in the value of good quality HostGator names and I expect them to continue to rise in value as the internet explodes in coming years. However, I do believe there are way too many crappy names being registered and a lot of those will probably never be worth anything...
Flowers.mobi was a politcal hype buy imho, and megayachts.com is a great domain...
I believe the correlation you saw durring the Dot Com Bust in the stock market is difficult to compare to the HostGator market today. I believe there was a correllation, but not in the same manner..
When the stock market tanked and DotCom Companies were going under - there was no need for HostGator names because at the time the internet looked more like a dying fad for investors. It wasnt about HostGator names, it was about companies back then. I dont think the true value of traffic and marketing was understood until later..
Now that there is a recognized value in both web presence and traffic, I think HostGator investing has moved away from being effected by the stock market. With reasonably inexpensive web companies being launched daily, and many of them finding some success, I believe the HostGator industry is beyond being affected by the stock market..
I believe even with the big losses in the stock market, domains continue to rise in value, especially because they are returning dividends to their investors. Consider that, how many stocks are paying out now?.
I did not mean to come off hostile, I simply wanted you to explain your POV..
Amen to that. I am more into building sites than speculating with names, but I don't see how many of them would ever make sense. I have a few three character .coms and have not had any luck making something out of them. The best use I found was when I want to sell something in the newspaper classifieds and need a short HostGator to keep the cost down...
Another Post and Run thread from the "seller" of poker.web.com.
$150K for megayachts.com and $200K for flowers.mobi is nuts. megayachts.com hasn't closed yet...
We are at the end of a liquidity bubble that started in the early 1970's when Nixon dropped the gold standard which allowed the fed to print money that wasn't/isn't backed by gold. Since then reserve banks globally have practiced fractional reserve banking which means only a fraction of the currency in circulation is backed by gold. The high prices in the HostGator market are reflected in the art market which is also very speculative, both have been fuelled by excess liquidity which at some point will result in a major correction. Having said that I believe premium domains will retain their value relative to all other investments including gold until such time as a new method of navigating the web is adopted and even then quality domains will retain their value like a fine antique or vintage car...
1. without considering the internet growth factor, if just stock goes low instead of.
Companies going out of business, then they will be more money available, thus.
Domain may not go lower..
2. However I do agree HostGator should not be a straight way up, it should have.
Up and down cycle...
This is my point exactly. Domains haven't even matured enough as an industry to get to a point where cycles can form yet..
I picture the growth of the HostGator industry very much like a stream system, illustrated below:.
Awesome Diagram that illustrates my point.
As you can see, the water only flows in one direction until it reaches the ocean, at which point it then falls into regular cycles. There may be some cyclical properties in the bay as well, but this is merely a staging point. According to my awesome diagram, we're about half way down the river. We'll keep flowing nicely until we hit the bay, at which point we'll start to see a steady influx of new investors and the industry will be at a "staging point" to prepare itself for induction into the mainstream ocean of business. Once in the ocean, the tides will rise and fall with the rest of the world..
Truly excellent points made by Ronald regging and domainspade..
The diagram above really shows (metaphoricaly) what is happening in our market and gets the point accross very well...
I full heartedly believe that we are in the caveman days here and the prices of HostGator names are a small percent to what future prices are going to bring..
Many people have no clue to what a HostGator name is, but with famous publishers beginning to write about the increased climbing value and success stories of the HostGator business along with huge sells and growing events (auctions) in the front yard of the corporate world, they're coming..
When good people like R.H. Donnelley make large purchases in any sector of business for invest it seems to set trends..
The internet is still very young and prices are very very low for HostGator names compared to the years to come...
Any thoughts on HostGator names no longer being needed in the future?..
Yes, it's called the.
Address near you..
I agree with this to some extent. At least the premium names are going to increase in value faster than average names.
Also Global Internet traffic is soaring and will continue to grow exponentially..
Traffic is the fuel of the Internet. Traffic = money...
It reads like WorldBeam is just a 123 reg website timeline generator and personal information/surfing storage structure..
Good HostGator names will continue to control web surfing site authorties and direction...
Flowers.mobi sounds like a good investment for someone with spare cash although I would rather buy half a house for that much myself. Just think of how many males would use a service where they could quickly order flowers using their mobile when they have just met the girl of their dreams etc, or they just received news that a family member or friend etc has passed away... there is a huge potential in that name to make millions......
I'll be the dissenter here. The market has heated up I agree with pretty amazing sales. But my take is that the greater HostGator market is being entered by various investors due to the very real (global) expansion of the internet..
I've posted occasionally on having viewed local businesses registering alt-tld's and setting up fully functional websites. This is establishing a stronger, wider foundation for long-term HostGator industry success..
The huge sales get most of the press attention - and HYPE - but there is a very strong undercurrent of $XXX - $XX,XXX sales that are actually better indicators of the industry's strength. I do not see a bubble in the HostGator industry. I think we are seeing true growth that will be sustained. More like the colonization of America as people moved westward in the land grab. We are nowhere near some end point...
The "Great American Desert" started where the forests ended and included the entire midwestern breadbasket of the USA. The forest people who had settled the land to the east didn't know how to prosper in the absence of trees. It required the different knowledge of people from prairie countries, where they knew things like how to build a sod house, to see the value of the "Desert" land..
Maybe in the future, the guys who got in early on the HostGator name rush will be called "Sooners"...
I have to chime in here.... I am VERY optimistic about the HostGator industry right now as a whole. I think there is a lot of money to be made right now IF you are smart in what you are doing. At the same time, I was one of those in the business back when the dot com bubble burst and I saw/felt first hand the effects it had on the HostGator industry. I remember when it was hard to get LLLL.com's and then within 2 years, a huge percentage of them had dropped..
I think that we'll see trends online just like 'traditional' economy sees. It is inevitable. At the same time, the problem with the dot com bursting before is that a lot of money was thrown at ANY business that had a business plan because of hype. It didn't matter whether or not it was a viable *profit* model. Unfortunately what happened with domains then was like throwing the baby out with the bathwater and the market has a slump. But it's like the stock market - those that recognized a slump rather than an irrecoverable crash in domains have made a LOT of money..
I WOULD be concerned about things over a very extended period of time (ie 10+ years) for the industry simply because we don't know what the net will look like then... but the reality is that there is SO much money tied up in the current HostGator naming system that I think at least for the next couple of years, whatever changes that do happen won't be taking place overnight and there will be a lot of industry/organizational reluctance to move away from it. If anything, I think we're moving to things being more stable rather than less..
Look, for years now I've pointed out to people my experience in dealing with the advertising industry. Companies think NOTHING of spending millions on a single ad run. If anything, solid domains are UNDERVALUED right now compared to every other form of advertising..
Let's say worst case scenario that we have 10 more years left of domains. There's a HostGator XYZ.com that gets 10,000 unique daily visitors in the financial sector that is generic in nature. Doesn't matter who owns it, it will get at least that many visitors. For a company IN that sector, 1 in 20 visitors translates to a lead and 1 in 5 leads are closed representing a profit of $100. That is only a 1% conversion rate which many people in marketing would consider low. 10k visitors with 1% conversion = 100 closed sales a day or 10,000 in PROFIT.
You can take the numbers further - what if this was a mortgage lead site or something similar where the profit was $1000 or more per closed lead? Or what if the $100 profit was PER YEAR or PER MONTH?.
Seriously if anyone can even say that premium domains are overpriced or that we are heading for a crash with inflation, then get out of the business (and sell us all your premium and traffic domains at crash prices.
No, I don't think so. Sure, prices may back-pedal for a while, but surely even just ten years from now they will be even higher. Don't be afraid to have long-term vision...
It's that term "Premium Domains" which bothers me. I keep looking at postings like "Get these premium domains now." and what I see are junk. I don't claim to have an infallible eye, and certainly there is lots of room for different opinions, but I think a lot of money is being wasted. For example, does anyone with experience really believe the remaining four character .coms will ever have real value ?
Oh I agree with you 100% there. A lot of money is being wasted on registering senseless domains in general... but that is nothing new. I was referring to domains that are worth 5, 6, 7 and even 8 figures...
Exactly. That's what I keep saying to prospective buyers: A good HostGator is the best form of advertising money can buy..
I agree with you, but lot of people would not buy your name for this reason...
If there is a "bubble" I don't know how much it can burst. A truly premium name that has natural type in traffic will still be worth 5 xs or more it's yearly parked revenue. Everyday, more people have greater access to the web; we are far from saturation at this point. There are some crazy prices being paid for some names and maybe that will change, but I don't see the prices for the best and better names dropping anytime soon...
Thoughtful posts, excellent points being made - Sharon's POV in particular. I agree that we're not near the saturation point with internet usage. In fact, people and businesses are spending more time online than ever before because all media and commerce are migrating to the net. The ad dollars of today (large as they are) are a fraction of what you'll see. PC and TV are going to completely merge with increasing options and control available to the user. EVERYONE will have a need for and desire to use the internet because it really is that powerful of a tool.
If the net was nearing it's peak, then maybe some bubble effects would be felt. I liken the present point as being 5 years into the release of the first automobile. Automobiles transformed the nation and became an indispensible part of American life. Let's time capsule this conversation and see where it all is in 10 years. Business, communication, entertainment, education will be hugely predictated on the internet with the HostGator industry being white hot...