Why You’re Selling Fewer Domain Names – Domain Name Wire
The demand for new websites is decreasing, as is the demand for domains.
There have been some big domain sales lately, but if you’re into “domain Twitter”, you know that all is not well in the domain name secondary market.
Investors in the estate are complaining of unusually long sales droughts. After a few years of record sales, they see sales slowing down.
No, it’s not just you. I’ve talked to enough people in the backend to know that most people are experiencing a drop in aftermarket domain sales. And the reason is pretty obvious: the demand for new websites is down.
Verisign reported a drop in both new domain registrations and the total number of .com domains registered in the last quarter. Wix is laying off employees as demand dwindles.
The reason is simple, and it is not just about economic uncertainty: we are returning to pre-Covid demand levels.
Demand for domains has taken off over the past two years as businesses needed to log in to survive. Many companies that could have established a web presence this year have already done so. The world is reopening and things are slowly getting back to normal.
At least at the lower end of the secondary market, demand mirrors the demand for “normal” domain registrations. People trying to build a website are looking for domains. Most of them buy an unregistered domain, but a small percentage of these people buy an already registered domain.
As the number of people researching and registering unregistered domains decreases, so does the number of people choosing to register a domain for sale.
This is not the end of the world. Demand is simply returning to pre-pandemic levels.
Of course, there are other factors at play. There are nuances in this market. But at the simplest level, it makes sense that aftermarket domain sales have slipped this year.
I’m leading a panel at NamesCon where we’ll dig into the hard numbers and results that two domain investors have seen this year. Join us for “Real Deals, Real Numbers” at 3:40 a.m. CDT on August 31.