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Originally Posted by DrinkingHARDER
What are your guys thoughts on this matter? Are domains that are purchased now going to appreciate greatly and be worth a lot more later on or is it all just "sizzle" and no "steak"? Is this a big pump and dump?
DH
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Yes I believe some domains will appreciate. But it depends what you're buying & why. I buy domains to develop, but if I have too much on the backburner or someone is interested in the domain, I'll consider any serious offer. I'm still buying and selling, but I'm not moving in the same direction as the PPC/Traffic part of the industry. I focus on brandable domains with or without traffic. Companies/Startups are still buying brandable domains from me and traffic hasn't been a factor/dealbreaker. Even though I have negotiated with some of the large PPC buyers who only care about traffic and are offering 3x-8x+ revenues, I've been able to sell a few domains this year for substantial cash up front (5 & 6 figure deals) + % of revenue (ad &/or sales) AND received equity stakes in the newly formed companies (10%-49%). FYI, I had to fight for these type of deals, the negotiations were drawn out, but it made sense to all parties involved in the end.
But right now there are probably new domain speculators buying countless domains who are mortgaging their houses and taking huge gambles on a market they haven't taken the proper time to study... so a crash will surely come... and of course the strong will survive as always.
But the bottom line for me, if a domain's value doesn't appreciate, no big deal, I bought it to develop into a site and build value into the name/brand that way. I'd rather flip domains than flip burgers, but I'd rather flip companies then flip domains. (and imo, it's much more fun)
either way, good luck.
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