On The Day Data.com Sells For Millions Latona Declares “Domains As Not Worth Much”: Let’s Call This A Market Bottom
Well RickLatona.com wrote on his site the other day that he was switching gears once again and moving into a new direction saying:
“We feel that domains just aren’t worth that much anymore”
“The domain bubble burst in late 2008.”
“Various sites and reports will show you that sales are still strong on the low end of the market, $x,xxx and $xx,xxx sized deals. Occasionally, we’ll even see some 6 and 7 digit deals hit the news.”
“However, those are rare and far between. ”
“There certainly aren’t enough of them for a broker to make a decent business out of them.”
Now I rarely call people out for business moves, as we all make a ton of mistakes and god knows I have still make plenty of them myself, but I don’t rip the business I’m in because I screw up.
The statement: “We feel that domains just aren’t worth that much anymore”
It’s just bullshit.
An excuse for failure.
And worse, untrue.
Domains are if anything worth more than they ever were.
Personally I’m heading for a record year in domain sales.
Domain Brokers are making money.
While Rick is throwing in the towel others that didn’t even exist a couple of years ago like MediaOptions.com and DomainAdvisors.com are making sales and making a name for themselves.
If you want to get out of a business that’s fine.
If you decide a particular industry isn’t for you then you should do something else.
But if you can’t sell cars then sell something else but don’t blame the car industry.
On the day Data.com sells for something closer to the high end of its reserve price of $5M then its low range of $1M, Rick says “domains are not worth much anymore”
Lets face it, Rick’s timing hasn’t been the best.
He got into the mini-site business and then pulled out said there wasn’t money in it.
Epic seems to be doing fine and DomainHoldings.com seems to be rocking with a similar, yet well advanced concept.
Rick got into the domain conference business probably at the top of the market only to exit with cancelling a show.
Yet TRAFFIC South Beach was successful and well attended last October and DomainFest in Feburary had a ton of people.
Now Rick declared “Domain names not to be worth much anymore”.
So I’ll say that as clear indication of a ‘market bottom” in domains as you’ll find anywhere.
If Rick wants to leave the domain name business, I wish him all the luck in the world, but don’t blame the business on your way out.
Back in the real world, business is good.
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Cutting to the chase… this article says is that a well-known domainer is selling off his generic names. This is news?
PPC takes a dive++, large portfolio domainers without traffic can’t afford their reg fees and we have a surplus of generic names for sale. Some manage to sell for high premiums but the _majority_ do not (hence only some sellers are optimistic).
Who is buying at the high premiums? Short-term, it doesn’t matter who they are. A sale is a sale. There will always be inspiring success stories to be told. Keep them coming.
But _long-term_, regarding the market for domain names in general, it does matter who is buying. Are they financially sound buyers or the next wave of web failures? If it’s the later, then we can expect another fallout when “the bubble bursts”, like the one that spawned drop catch domaining almost 10 years ago, but doubtfully of the same magnitude. Consequently, domain names will be harder to sell, and easier to buy. But fear not, they’ll likely be yet another bubble, so long as we stick to using DNS and the monopoly it creates: ICANN will just keep creating more names to sell to keep the game going.
++PPC: This is really the topic that needs to be examined more closely. If enough major brands and major content providers decide Google is a worthy partner, then will Google still feed ads to small websites? Why bother? Considering how well Apple and Facebook are getting along with major brands, it seems the pressure on Google to partner and work better with major brands in order to compete is there. It’s conceivable that a few major deals could completely alter Google’s revenue structure, making ad feeds to parking companies almost irrelevant to their bottom line.
If PPC dies, can domaining survive? No self-made domainer like the well-known ones mentioned can collect 10,50,100,500 thousand domain names and just sit on them, waiting to sell. PPC is what allowed them to do what they did. If PPC is dying then we can expect to see various strategies by major portfolio owners to address the reg fee problem. They have to become salesmen, selling off generic names or offering domain name related services, or both.
There are certainly still opportunities (that’s an understatement), but selling domain names or related services are obvious ones and will be subject to increased competition and falling demand going forward, whether anyone calls that a bursting bubble or not.
Former domainer now selling domain related services. This has become a recurring theme.
See I like BigCheese attitude…just have fun and you can make money.
If you are serious abt it, it adds more stress and pressure and you are doom to fail.
I just hand reg PoopApp.com and created a site for it.
An app to identify animal poops.
Will be huge- again..this is just a fun project.
Data.com was a steal for any amount under $5 million.
Why are you guys saying Rick is a failure? You guys are such idiots!
I have done several six figure deals with him and he turned around and sold that same name he bought from me for much much more within couple months for huge gains!
Rick has made good money in everything that he has done in domains. Just because he stops doing something doesn’t make him a failure. Why continue something that isnt working anymore?
Rick made tons and tons of money buying and selling domains and also brokering domains…then when he felt like this business is done…he stopped…moved on to the next biz.
He also made great money lending money for domains…now its slowed down…so he is moving on.
He made a nice profit on AEIOU mini-sites…i bought few from him…and i have seen several domainers bought from him also…he took in alot of money…and when biz started slowing down…he closed it and moved on.
Rick is a fast mover…he makes tons of money…then when that business slows down…he gets out and moves on…This makes him a winner in my book…you go where the money is…you take it and run…and move on to the next thing.
His next move is selling money making websites…watch and learn…he will make tons of money in this…and when it dies down..he will close it down and move on.
He is a great success…a true winner!
Anunt
No one said he didn’t make good money in business, and he has every right to change course and do something else, but don’t blame the business and industry he made the money in and on the back of.
Instead just say I think there is better opportunities elsewhere or I don’t want to do this anymore.
No Problem
But don’t say the business that feed you is dead and gone.
I believe domain names will pick up again this year now that .co is in the mix.
In my opinion , you have to buy both .com and .co to get the full ecommerce
experience.
it’s Epik with a K
Steve
Somebody actually is reinventing the language of the Internet
What was previously known as “dot com” will now be known as “dot brand”
The biggest problem with domains I have ever faced is explaining to idiots there value. EVERY single person I seem to meet sees no reason for them and acts as if having them means nothing (keywords, specifics,geos…). I own over 1000 super solid domains and I get maybe 5 inquiries a year with maybe 1 or 2 1,xxx sales. I must say no matter the value to a smart domainer…. DOMAINS ARE FLAT DEAD ON THE STREET!!!! IN ANY EXTENSION!!!!
I have also bought names from him, a few years ago and he is a good negotiator…
It’s just harder to sell names atm but still possible to sell names at a good price, you just need a good sales pitch.
I still have some nice offers on brandable names in $x xxx
The market will pick up again and the prices will allways go up in the long term…
If you can’t wait that long then maybe the market is not for you.
Most of the time it takes longer now to find an end user. You also need a good strategy how to make money
Rick, prophet of truth, and others with the same mindset seem to declare this business is dead based more or less from their own personal success/failure rates more so than the success/failure rates of the general domain investment community. Only empirical statics relating to market growth, and inflation values would shed light on this industries current (and future) outlook.
I saw it more of a promotion for his new business. It’s a linkbait and some bloggers and ate the bait.
This story is as big as “The domain industry became 1 individual less” i.e: I don’t care specially that this individual believes in untrue facts about the industry,
. GO DOMAINING GO!!!
Thanks for this. Very, very much!
Typical Rick the loser Latona!! Sticks his little small petite gay foot in his big crappy mouth!! Anyone ho thinks domains are great investments has to get their head of their nasty A$$! What a total FOOOL Latona is to put it lightly! Domains are selling REGULARLY and continually! Perhaps this derelict Latona will go in this new direction and move to Syria and see what life is all about living in a cave where this FOOOOL belongs!!! besides HELL that is! What a WHIMP!
Got a little into the last post a little too much seeing I wanted to slam little gay boy Latona! Typo is corrected as follows: Anyone who thinks domains aren’t a great investment has to get their head out of their nasty A$$! This is you derelict Latona! Now go to hell where you belong!
The biggest problem with domains I have ever faced is explaining to idiots there value. EVERY single person I seem to meet sees no reason for them and acts as if having them means nothing (keywords, specifics,geos…). I own over 1000 super solid domains and I get maybe 5 inquiries a year with maybe 1 or 2 1,xxx sales. I must say no matter the value to a smart domainer…. DOMAINS ARE FLAT DEAD ON THE STREET!!!! IN ANY EXTENSION!!!
//////////////////
If you own over 1000 domains ie $8000 in reg fees, and get one or two $1000 sales a year (with no other revenue) the portfolio is worthless, that is a fact. There is no point blaming buyers who “don’t understand” these unsellable domains.
come on, who cares what the guys says, he sells used watches
LOL
he was never a ‘player’
a wanna be
the real players don’t sell
the accumulate
some then do development deals
a decent name with a business model is 100M for ‘angel investors’ and 500M for cash rich public companies to acquire if not more and BILLIONS in potential IPO’s
selling the foundations of future empires for 200K or 2m or even 20M is a joke if you understand the future of commerce
it’s all digital
no one leaves the home soon
> if you understand the future of commerce, it’s all digital
yeah, just might not be .com.
MHB: ditto for me.
My experience with him was that he was very arrogant towards me when I reached out to him in the past when trying to learn the ropes years ago.
I do wish him the best in whatever he ties next and there is money to be made for all of us.
I have seen the market slow down some but I do not see the values going down. It is actually up to the sellers to get what they want from a name whether it be a quick flip or holding it for years.
UPDATE
RickLatona.com has now published a post explaining his post:
http://www.ricklatona.com/2011/06/11/are-domains-worthless/
Huh??
That post didn’t really make sense either by him.
Seems Harvard man needs to ask business 101 questions to himself
What’s your costs? How much is enough? He is not a frank schilling and dosent have that kind of bank
Luxury rentals, big houses , etc
Wake up and smell the coffee.
What a bs post imo.
seems like he’s admitting his portfolio just doesn’t generate enough passive income.
the original mould of the “cybersquatter” was a hustler and a salesman, to use someone else’s words. this person would register a domain name in hopes to sell it to someone, e.g. a major corporation, who would be willing to pay a premium for it. his leverage was the public’s growing use of the web. in those days, the names often if not always mirrored a trademark.
laws were passed to curb that activity. but it still lives on with generic names.
so many people still dreaming of gouging some deep pocket technology-phobic company for an otherwise inexpensive and easily acquired domain name.
but there’s whole ‘nother side of domaining apart from the “cybersquatter” mentality. it’s not focused on sales. the top tier domainers are not the pure salesmen. they’re not the hustlers. for the most part, they’re not selling.
of course, that’s an opinion. some see the salesmen as the “top domainers”. but i think there’s a lot they don’t know and are unlikely to learn anytime soon.
“cybersquatting” (making domain sales) will always have its appeal. but that’s not the true value of “domaining”. again, that’s an opinion. those who do see the true value generally are not posting about it. they are modest and keep a low profile.
the domain salesmen and hustlers are a highly visible group. but one opinion is that they are only the tip of the “domaining” iceberg. the portion below the surface is enormous by comparison.
in sum, another opinion is that this story is much ado about nothing.
I have never been a big fan of Rick. But I do understand what he’s saying. A lot of you guys see these one word domains being sold for millions and you want to believe that’s going to make you rich some how. In comparison to the amount of domains out there and the ones sold the domain business is not a gold rush anymore. Look at what the prices on Namejet use to go for and what they go for now. We all got caught up in the hype and still do. Hanging on to this one big sale that you heard about wanting to believe this business is huge but it’s not. Not to mention all the BS’ers “The Big Guys” still stringing you along like a drug dealer so you’ll keep buying into the idea that keep them rich. Why? because there isn’t enough end users buying domains and that want to pay the price we want for them. More money is being made by selling to investors and that’s not enough to keep “the dream” going. And the more fear doom and gloom we talk about it has stopped them from buying too. We’re like little kids that want to believe there is a Santa Claus. The trip to Disneyland isn’t over. But kids it is. The more extensions that are being released are going to make it worse. What are you going to do buy up every extension on earth to protect your name?
Think of it this way, it’s like diamonds. There are huge ones that have no flaws that sell for millions. You walk into a huge casino with 2,000 machines and you only see 10 jackpot. That’s the domain business. If you think I don’t know what I’m talking about, I have worked in Nat’l and Global advertising for 30 years. I am going to take that high price name and develop into a huge business or campaign to make a large return for my client.
So to make a very long story short, we all thought we were going to sit on our ass and sell these domains so easily. Sure Media Options a new company is doing great. Look at how many one word domains they have to sell. Ask these people that claim to sell millions of dollars every month in domains to show you their actual sales records. Then ask yourself why aren’t you so rich selling your domains?
I believe (and take it for what it’s worth) the way to make big money in the virtual world is to turn your domain into a real business yourself. Find a niche build a business.
Wow! Where is all of that venom coming from? Sounds like you can’t stand on your own merits and need to attack Rick to boost your ego. Hope it worked for you because you sound like a lunatic. And if you’ve ever worked with Rick’s “Ex” you’d understand why he hit the road.
Business is GOOD here in the Bell Camp of DomainBELL
as well… But I work my butt off for that to BE…
I love what I do though – so the hard work isn’t
an issue for me in my success…
I’ve watched Rick Latona for over 10 years…
He doesn’t stay with anything very long…
I’d say he’s going through a major midlife
crisis or something similar…
I learned awhile back to not become involved
in anything he’s connected with… he’s here
today – tooting his horn – and gone tomorrow
complaining…
I’d say his 15minutes have long since past…
I hope he finds happiness in life… It’s obvious
he’s a very unhappy man…
~Patricia – DomainBELL
Rick is one of the pillars in the domain industry I look up to, and hope he sticks with this business model. The type of businesses I am building I want a venue which will appreciate it as an alternative to Flippa. You go, Rick!
Just read ricks update and he makes sense end users are hiding like cockroaches in the light hoping you will drop that great domain matt cutts has all the generic domainers holding there balls because the sky is falling parking ppc is dead thank god what latona is saying and domainlords also is the money is in developing our property,s if you have a high search and i mean search engine search not direct type in then relax hold it till you can develop it do a google stats search on a domain pick any good search term and look at the difference between the search query and the actual dot com /net/ org search volume and the discrepancy is huge, search is where it,s at not direct type in i have industry domains that get 5000 to 250,000 exact Google searches a month but might get 1 or 10 direct type in searches, any smart business could use these domains and really do well but as prophet of truth put it domains are dead on the street to most business,s because they have not got a clue of how the web really works, when i talk to regular people the kind that go to Google for there answers they tell me they look at the domain to tell if it,s a good site they do not care about seo search volume or what all the pro’s think there not even aware of this side of domaining it is all about the name, we need to think like users not domainers.
yeah patrick.
if google, or msft, had their way, all type-in would be in a search box. it’s their business. if users become indifferent enough to how the web works, we might see the address bar disappear. google has products that lack an address bar. when you power on, you’re connected to google. it is the “default browser” war taken to a new level.
but the present reality of web traffic is something different than the vision of these companies.
type-in is not dead. for many popular sites, the referral logs show it is a close second to search engines. this must apply to generic names too.
search engines have to “kill” type-in to make it go away. they have to obscure the address bar. they won’t simply overtake type-in as a means of navigation because users “prefer search engines to the address bar”.
as patrick says, many of today’s users don’t even know the difference between the two.
Maybe he wants you to think that, so he can scoop good domains up on the cheap….. hello!