Domainers And Domain Name Resellers

Domain Name ResellerDomain name industry is still young and immature. There are many chatoic events and gamble like events happening all the time. This is to be expected from an industry which didnt exist two decades before. Some would argue to say the domain name is not industry at all – no end product and the ware is virtual. Well in that case there is no music industry and no movie industry either. However we know this is not true.

As in all start up businesses, in industry branch startup there are lucrative and very profitable times at the very beginning. This is where people get interested in the business ideas and make their investment. After this initial boom there is a stagnation period, because once overfilled the industry has too many bidders versus small amount of takers. This stagnation period can last longer than initial boom period. Once it is nearing its end and takers overwhelm bidders there is another boom period. And the next cycle is a bit shorter. This repeats for years and once mature industry have short boom-stagnation circles with steady almost secure margin for profit. This is an automobile industry for reference.

In the domain name industry we are nearing the end of a stagnation period. It has lasted for few years now, ever since dot-com bubble burst. That said we can expect another industry boom soon enough. This situation is clear on the market because you can see many domainers acting as resellers. They are re-selling everyhing under the Sun because takers started to appear. It is not lucrative as it was 10 years ago but you can still make a nice profit doing domain name reselling.

On the other hand there are domainers just buying domains. They seldom sell any domain unless they got an offer they cannot refuse. What is their business plan is unclear. What is clear is that domain names without content are just empty shells having no real value in their name (pun intended). On the other hand domain name having a good value have a good contextual intestins. No matter if the name is worth zero to domain name reseller, it can for the right price be a real gem to a person willing to develop it.

So what is the difference between domainer and domain name reseller. Basically none, since domainers holding onto their domain names and actually developing them for profit are in minor. Suffice it to say if you meet a domainer you would most probably meet a reseller. Nothing bad there, resellers are everywhere, from grocerie stores up to stock market. Resellers are keeping their bread crumbs profits on domain entities and their success is measured by the quantity. They often do not care about domain name itself, if they can find an end user willing to buy for a nice profit margin the name itself is unimportant.

We have discussed why domainers are not domain name squatters and now we know that they are actually domain name resellers in their majority. Once the industry matures in a decade or two, resellers will stay with us but their profit margins would be much lower and upstart resellers would need large funds to start a business. This is of course not the issue now when you can buy a domain name for 10 bucks and easily resell it for 100 or more.