So I just got a batch of domain names which need to renewed (.co.uk names are due for renewal every 2 years) Now I looked down the list and there was 14 names which need to be renewed in july 2009. Not too bad I thought, then I looked at the names and out of the 14 names I have only developed one of them in 2 years !!!!
However I am not alone- after speaking to lots of other people in this industry, it appears that this is normal practice in this game !
It isn’t all doom and gloom, as good .co.uk domains will always rise in value as they become more rare to purchase for registration fee. Just take a look at Domain Prices and see how much some domain names sell for. Alan the owner of acorn domains (another fantastic resource for us doman name addicts to meet up) does a great job in keeping this site updated, and it is great for people who have investments in premium generic domains, as it shows proof of domain name sales to people who do not understand the value of domain names, and also how important they can be to a business.
Now don’t get me wrong, every domain name is not valuable but it makes me think twice when I see my domain renewals and worry that if I let them drop, the may become be valuable in the near future and I will have missed out on an opportunity.
Take tradeexperts.co.uk for example. A nice domain which is an excellent name for a website offering all the details of the best tradesmen over the UK. I had an offer late last year for £500 for the name, and I declined it. The name came up for renewal last month, and once again I paid the £6 registration fee to renew it for the next 2 years, as someone has already shown interest in the name. The name is still undeveloped and will never be developed by myself, so should I have taken the £500 ? But then I have telecommunicate.co.uk which was due for renewal 2 weeks ago, and I am going to let it drop, much to my dislike.
Don’t get me wrong I have made a VERY healthy profit from selling some domain names over the years, and only yesterday a friend of mine messaged me asking what he should do with a domain he bought. He bought it approx 6 months ago for £1,000 and he has now been offered £2,000 for the name and he hasn’t even done anything with it, and this is a growing trend as domains become rarer.
Domain name addiction is something which takes up quite a bit of my time, I have 100′s of good domain names sitting there undeveloped but I still look for more domain names to invest in. It isn’t a “bad” addiction as such, but you need to have an eye for the market (which luckily I feel I have got, after buying and selling domains for a few years from £xx to mid £xx,xxx level )
I would be interested to hear comments from other domain name addicts and what reasons they keep buying names and not developing them and just hoard them away.