Thousands of’s Will Drop This Month – Domain Magnate

Thousands of’s Will Drop This Month


About a year ago things were quite different and domainers were encouraged to invest by ever rising prices on both short domains and generics and recent buyouts (such as and premium letter’s) which proven to be quite worthwhile. Minimum prices for’s reached $65 during peak times and there was a healthy supply of buyers. So back in those times it made sense to buy lots of’s as well and hold them because prices would rise eventually. Which is what many domainers did buying up to 1k of them each. I had 875 of them at a total cost of around $6k – several other investors purchased more than 1000 of them and now realize the mistake and decide not to renew most.

Now, when the renewals came I decided to drop almost all of them, only leaving a few.  I expect thousands of them to be available for registrations within the next month. The ones that represent a zip code, or have certain meaning would still be valuable, but the rest are going to wait for the next buyout phase.

Now for those who saw my posts a year ago know that I was investing in those digit domains heavily and even encouraged others, predicting that prices would rise. And I did believe that at that time, now of course I see this was wrong and it’s time to cut the losses.

Some people reading this would probably think “ha, what a dumbass, lost $6k on useless domains and he still calls himself Domain Magnate”, but I’ve long since adopted a different business approach, one that has always proven most valuable in the long term.

Failures and losses are a part of life, business especially. Only one who does nothing can never fail. Moreover, while success has its challenges too, failure is more important to growth since all failures occur to teach us valuable lessons and if we take the time to analyze them and ponder on the causes and consequences the empirical growth will be well worth  the material loss.

And so a word of advice to all those who took a loss on their domain investments over the past months – use this as an opportunity to reassess your strategies and plans and make sure not to repeat the same mistakes twice. Now when prices are down again and many top quality domain names are available for purchase it’s a buyers market and a great time to invest. But as the financial crisis continues this situation is likely to continue for a while, so no rush – review hundreds of domains and buy a few.

This and other similar experiences, like the falling prices for’s which I’ve also invested in significantly, caused me to reevaluate my business plans and concentrate more on increasing the revenue from sites and other online properties to increase the cash flow. Most investments and projects I’ve been involved in over the past year and a half have been quite profitable and easily covered the other losses, but it is the failures that help correct the course and aim bigger.

Developing sites for affiliate and adsense revenues used to be my main business, though substituted by domaining for a while. It also showed the importance of more conservative investment strategies and long term planning. And to finish this a famous quote:

“Only those who dare to fail greatly can ever achieve greatly.”

— Robert F. Kennedy

4 Replies to “Thousands of’s Will Drop This Month”

  1. Interesting post. As you say, not every investment can be a winner, it’s a matter of winning more hands than losing. I think a lot of people are feeling the pinch at this moment in time.

  2. Yes, the buyout did not go as many of us had hoped. You can sort of see the trajectory of prices fall along with the larger economy. There was an initial spike after the buyout, then prices steadily trended downward until late 2008 when the bottom had fallen out. Part of it was $$ dried up in the domain market in general, part of it was the fallout in the market, and part of it was that’s representing zip codes that had previously gone for $x,xxx were going for $xx after the fallout in the US housing market, which I think hurt all’s. I am holding some for the long term, but got rid of most of mine. Long-term I think prospects are still good for all numeric domains, including’s, but short term it is obviously not looking good.

  3. Had not been following domains for a while, just sitting on the numerics I still had. And recently I went to scan the available NNNNN’s just for old times sake, and guess what? They are nearly all gone once again. I think there’s left than 1,000 left out of 100,000. I haven’t finished my scan, but I am showing basically everything without a “4” in it is gone. And this is a few years after the buyout, so people must have re-registered their domains several times or maybe this is new registrations. I think what happened is the buyout looks like it was ahead of its time. Chinese internet usage and domain buying has continued to grow, and my guess is this led to the continued evaporation of available numerics. Plus sales have been on fire recently. I think when we started looking at the buyout there were over 10,000 left. Anyways, definitely not trying to stir up another buyout, just noticed that it seems to have happened while I was sleeping. Except for non-US zip codes with a “4” in them, the’s are gone once again… Crazy world.

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