2022 started off on a very strong note. I closed some great deals, and things were looking positive, despite some dire economic predictions. The Summer has been quite slow, and I am sure it is not isolated to my business.
As a result of this roller coaster year so far, I have been maintaining the status quo. I am opportunistically buying good domain names, but my priority is to preserve cash for a longer downturn. On the sale side, I am still saying “no” quite a bit, as I am not motivated to move good names for prices I believe are too low. I would say I am more willing to move replaceable inventory for more reasonable prices though.
Typically, domain name sales improve in the Fall. People return from vacations and start thinking about business again. Companies have marketing spend to burn before the end of the year. This usually leads to an uptick in domain name inquiries and sales for my business.
This year, I am not so sure we will see much improvement. Inflation is still high, and interest rates have been increasing. There is less cheap money available to finance things like domain name acquisitions. Making this a bit worse, I think businesses are hunkering down in anticipation of a recession. Perhaps they won’t think now is a good time for spending money on domain name acquisitions, particularly if the company is also considering or going through layoffs.
I think we are in for a protracted recession, and I am operating accordingly. In short, I am staying liquid, buying good assets opportunistically, holding strong on my better domain names, and considering reasonable offers on my inventory.
You are a great domainer and very honest, and I am so glad you didn’t say no to Ron Jeremy when he came with us to party after Domain Fest in 2008. Congrats on all your success Elliott
The only time I remember hanging out with Ron Jeremy was after the DomainFest Playboy Mansion party. I was hanging out with another domain investor named Tony, who I knew from New York. There was also a guy who was starring in a MTV show at the time and one of his friends who had been at the Playboy Mansion. There was also a girl who knew Ron that came, and she had a unique nickname. We ended up hanging out with them because the MTV star knew one of Tony’s friends from home. We ended up going to a nightclub in Hollywood. Tony and I were the only domain investors. I don’t think I know anyone named Niles, but I may be mistaken.
I agree. Strangely, auction prices at DropCatch, NameJet and GDA seem as crazy as ever.
I had a slow summer and then a strong pickup in August which I wasn’t expecting. I am more of a volume investor with a portfolio that averages around 7-10k domains. For whatever reason this business does tend to cruise right on through recessions. I remember first dabbling around in it during the 08 financial crisis and domaining was profitable during that whole ordeal.