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February 18, 2007

Comments

Stephen Douglas

Hang on to domains because asset price inflation, and what then says "time to sell"? Right price? Or some other economic indicator that specifically reflects on domain values? If some warning is sounded that domains are no longer viable assets, will domainers be like investors in 1929, jumping out of windows as their domain values plummet? eeps!

Frank

Stephen, excellent question. I worried alot about this stuff early on in the domain biz. There wasn't any glamour in domains at the time.. so if you bought domains back then you did it because you believed in the intrinsic value (and loved the biz). Domainers by their nature have alot of extra time on their hands. So I started reading about the crash of 1929. After considerable study, I learned that advertising on the (then new) "radio" medium was one of the bright spots during that dark time. Advertising prices actually increased in effective terms during the depression. The "soap operas" of today get their name from that difficult period when colgate and palmolive advertised on (sponsored) radio shows. It was great, cheap entertainment for the masses during the depression.. and a status symbol/luxury for consumers of the time to show they could afford to be clean and smell fresh during a time when people had trouble eating. I have always said that history does not repeat, rather "it rhymes". If history is any guide at all, companies will ultimately pay more (cut their margins) to drive sales if times get ugly again. Would you rather own a newspaper with people and trucks that need oil and newsprint to run, or would you rather own names? :)

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