Domainers, before, were domain name investors that registered tons of domain names for reselling. The common practice before was to park their domain names in domain name parking services while they wait for someone to come and buy it off from them. However, today…
… Domainers are forced to develop their domain names to either mini websites / minisites (1 – few page websites), and Medium to larger scale website projects. These are some reasons why I believe it’s happening:
Parking just isn’t working
– Why Park if you only earn $0.02 per click? –
Domainers have hundreds, if not thousands, of domain names in their portfolio and they usually park their domain names to wait for the buyers to come. However, with buyers tightening their belts, domainers would have to rely on parking income. But Domain Name Parking only yields around $0.02 per click and is only a one-time-visit type of website. Some domain names might not even be enough to pay for its own domain name renewal fees and therefore domainers would have to find a way to increase their earnings thru developing their own domain names.
Economic Recession
– Noticed how people are getting affected by the Economic Recession? –
With economic recession, it affects both domainers and the buyers of their domain names. It affects the domainers by not getting enough sales to their domain names. They are then forced either to undersell their domain name portfolios or to develop. As for the individuals and businesses (buyers of domain names), they have their budgets tightened and probably would hesitate more on investing on domain names.
The Rise of ccTLDs
– ccTLDs are the future –
Country Code Top Level Domain Names (ccTLD) are getting more popular, as a matter of fact, it is in the top selling domain names from domain name auctions. Also, Search Engines give priority to ccTLDs in local searches (e.g. Google.com.ph) which makes it easily Search Engine Optimized over TLDs (e.g. .COM) and therefore makes it more popular in the local market. Domainers, especially investors in TLDs, would then need to develop their domain names to compete with ccTLDs. And ccTLD investors would also need to compete with TLDs and other ccTLDs to be able to sell their domain names at a higher price.
Release of new gTLDs
– Internet Users going to be confused with more Domain name extensions released? –
With ICANN (Internet Corporation for Assigned Names and Numbers) releasing new GTLDs (Global Top Level Domain Names), such as .TRAVEL, .INFO, etc., it gives buyers many other options to own the domain name that they really want (instead of getting the .COM counterpart). Just like how Argentinian tourism have the domain name ‘Argentina.TRAVEL’ instead of Argentina.COM. As more and more GTLDs springs up, other domain name values will go down (Increasing Supply). I just hope the release of GTLDs will be controlled.
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