A very interesting article in the WashingtonPost.com today basically proclaimed the death of the domain investor with a big assist from Sedo.
The article cites the growing inventory of domain names from new gTLD;’s saying the parking and type in traffic will be gone and value of any one domain ” down to almost nothing“.
The article was chatting about the new gTLD’s and domain investing which they still refer to as cybersquatting saying:
“It wouldn’t have been too hard to buy up most of the available addresses, since there are only a couple dozen generic top level domains and a few hundred geographic ones.
“But, starting very soon, that’s going to become almost impossible.”
“Having thousands of potential top level domains available brings the unique value of any one domain name down to almost nothing”
We could register BestSentences.blog, BestSentences.web, BestSentences.home, BestSentences.lol…and on and on.
The coming expansion even destroys the revenue potential of “parking” domains before they’re resold, since fewer people will randomly type in .com addresses.
That means the end of cybersquatting as we know it.
The only domain industry source quoted in the story was Sedo’s Kathy Neilsen who gave less than a ringing endorsement to the resale market for new gTLD;s when she was quoted as saying:
“It’s a huge risk for a speculator,” If you’re not averse to risk, and they want to invest in property, that’s their right to do that.”
All and all its an interesting read and here is the full story.
However we have seen the Sedo which was reporting weekly transaction in the $1.5 + range have for quite a while gone to the $1.2 or so range sometime surpassed by Afternic.com, especially considering that Sedo includes domain names in its report that they just act as escrow agent.