Up until 25 years ago, at the dawn of the commercial internet, domain names cost nothing to register.
A quick history lesson: On September 14, 1995 all free domain registrations ended. From that date forward, Network Solutions, under contract with the National Science Foundation, began charging $50 dollars per year for the registration of domain names, with a two year minimum.
Fast forward to 2020 where many things have since changed. A quarter of a century later, there are almost 360 million domain names across all TLDs, gTLDs and ccTLDs. Most importantly, domain registrations now only take a few seconds, and even domain sales can take as little as a few minutes to complete.
Buying and selling domain names is a viable business that can be very profitable. Thousands of domains are being sold every year here at Sedo, and we strive to make the process a seamless and pleasant experience for domain buyers and sellers.
Growth within domain investing is influenced by both technological and sociological factors and developments. There are plenty of things that have changed in domain investing, and here’s our rundown of ten sentences domain sellers cannot hear anymore!
This domain will never sell
Being given advice on a domain name’s potential by someone unwilling to pay fair market price for it, is a self-serving statement. Domains do sell, even though some can take years, but as long as the seller persists there will always be someone willing to acquire the domain.
This domain is too expensive
Quite often, the previous sentence is followed by a reference to the asking price. It’s not uncommon for offers to be in the sub-$100 range, made by parties that possess little knowledge about the domain aftermarket. A seller can always educate them with facts about domain sales, and at Sedo we report sales weekly.
It’s a can-have, not a must-have
Many start-ups make the mistake to launch their brand on a low quality domain keyword, or on an obscure TLD. The fact remains: dot .COM is king, and although any domain can serve as a brand platform, customers are familiar with .COM above anything else.
It’s available in many other extensions
There are hundreds of gTLDs and ccTLDs, which is great for start-ups and businesses on a bootstrap budget. Eventually, when they scale up, the necessity of the .COM is often paramount. Domain sellers have the advantage of researching the market and pricing their domains competitively, and at Sedo we offer tools that do that for you.
Domain investing is squatting
While domain squatting is unlawful profiteering from other people’s trademarks, investing in generic domain names, acronyms, and other classes of domains is a legitimate business. Calling a domain seller a “cybersquatter” is the worst possible way to begin a domain acquisition conversation. You can learn more about available options and search the Sedo inventory.
I want this domain for my school project
Often referred to as the “poor student” approach, the argument that a student with no budget can acquire a domain name below its fair market value doesn’t work any more. Domain sellers are educated and willing to price their domains fairly - they aren’t going to donate domains to strangers, however.
This domain has no traffic, so it has no value
Traffic is good to have, but the value of a domain is more complex than that. Great brands began as crafted keywords, or as two word compounds. While generic, dictionary domains get type-in traffic, once a brand is launched on a premium, well-thought domain, it gets plenty of traffic from organic searches. Get the best SEO potential by choosing the right domain, and take a look at Sedo’s inventory of domain names.
It’s my first name/wife’s name/dog’s name
Such claims of “ownership” due to naming oneself or a loved one are usually unverifiable. Anyone can claim such interest in a domain and attempt to tug at the goodwill of domain investors. But even if the claim is true, a domain asset is just like any other asset. Would you sell your car at a discount to a stranger who attempted such emotional manipulation on you?
Domains will be obsolete in the near future
The truth is that with hundreds of new TLDs there are millions of new domains every month. The number is increasing, not decreasing! Owning quality domain names is an advantage that savvy domain investors are challenged to utilize every day. This type of “sky is falling” nonsense is not the best way to negotiate with the domain seller.
Contact me when you drop the price considerably
Domain names are being sold at greater numbers and higher prices than ever. Domain investors should remind their buyers that price trends are on the increase, and the best possible time to acquire a domain in the aftermarket is now - prices will go up.
Just list your domain at Sedo.com and let us handle the sale!