“This is the reality that domainers have to face: Most of the activity in the space that is considered “investing” isn’t.”
“”In the domainer space, it’s all about speculation. Not that there’s anything wrong with that. But let’s call it for what it is.””
“”I can’t bear to see the word “investing” misused any longer when used in the same sentence as “domains.”
As proof for this theory the author looks to Tucows selling its domains it acquired from its customers under YummyNames.com, the falling price of shares of Marchex, Dark Blue Sea and LiveCurrent and the Sex.com debacle, as indications that domains aren’t investments just “speculation”.
Mr. Jeftovic then goes on to call out Rick Schwartz; Used Airplanes, Inc (the buyer of flying.com) and Aron Meystedt at symbolics.com
Finally he goes on to say simply that “The smart money domainers are liquidating domains.”
“Founder and CEO of easyDNS.com, an outsourced DNS provider since 1998. Former Director to Canadian Internet Registration Authority (CIRA), 2002-2005. Guitarist & founder of The Parkdale Hookers, the open source punk rockers from hell.”
One man’s speculation is another man’s investment.
Where shares of Lehman Brothers that went from $70 a share to Zero an investment?
Are shares of Apple or Google anymore of an “investment” than a domain?
Shares of those companies pay no dividends.
You buy shares of stock from someone who is selling them believing that the shares will be worth more in 5 years, 5 months, 5 days or 5 hours from now depending on your trading strategy.
Mr. Jeftovic; Domains are traded in the same fashion, no?
You buy a domain for $1,000 because you believe it will be worth more in the future.
So if I understand Mr. Jeftovic is you buy stocks, gold, silver, art, real estate, vacant land, or anything else its an investment but when you it comes to domains its speculation?
If you want to prove domain names are a bad investment then you need to look at actual sales from a few years ago and then show me the same domains that sold for less.
Lot of them.
Then lets do it for real estate.
Then lets compare.
Lets do it for Shares of Google which are still well off their high of $740.
Lets do it for Citibank now sitting at $4 after being over $40.
Lets not forget about GM.
Yes those were fine investments.
Are the smart domainers liquidating domains?
Sure but we always have been.
But we also keep acquiring more domains than we “liquidate”.
That is how you make good investments.