Domain Investors Beware!

This is a post that I was going to do a few days back but I just didn’t know how to approach it (before the Snapnames buyout). I was doing a post on how domain names are online real estate and I was going to try and explain why the big domain name backorder companies need to either sell off now or diversify within the next few years. I’m a true psychic, right. Snapnames saw the numbers here and saw an opportunity to grow. The question is what kind of deal was struck? I would really like to know more. owns which could be a good business match for if it’s done right. The problem with is that they get most of their good domains from the aged and large domain registrars like Network Solutions and So how does plan to address these issues? They say that “Snapnames will continue to operate the firm, which will remain in Portland, Oregon” but in reality they can do whatever they see fit. If they choose to close Snapnames down to the public there are going to be a lot of upset domain investors. There is just a lack of great domain names to be had at a good price. This is because there are only so many dot coms available. This is only a problem for those of us that need a good domain as the domain investors that already have a good portfolio will be happy campers.

Years ago when domain names were being bought up by all types of people, registrars were pushing ten year registration periods. Although the ten year registration periods were good for both parties, the one thing the registrars did not push was automatic renewal. Lots of people who bought up domain names then are now seeing (or not seeing) them expire because they forgot to renew their domains. A lot can happen in ten years. The companies that registered these domains went out of business and the individuals have all too often changed their email addresses from those listed in the database. This topic made mainstream news a while back and more people have picked up on the fact that their domains they bought years ago will be gone unless they do something about this.

The other problem is, the good domains are all but gone. Just in the past year I’ve noticed a difference in the quality of domain names expiring. The domain industry is so competitive and there are a lot of hungry business people out there. Mainstream businesses have started to come around to the fact that a great domain is a very valuable tool in online commerce and have started to play the game as well. Plus, in the next five or so years most if not all of the good domains will already be had by investors that have backordered and are sitting on these domains. Where does that leave the average guy? Most likely you will have to pay a good deal for a great domain name because the high prices will not go away any time soon. With a domain investment company like at the wheel of the largest domain backorder company in the world should you be worried?

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