March 30, 2020

Domain Names and Covid-19

written by

Joe Uddeme

Joe Uddeme

Domain Names and Covid-19

Over the past few weeks, there have been many readers asking about the effects of Domai Names and Covid-19 on domain names. Should we hold our names, or sell them now? How has the impact of the global pandemic affected domain name investors and owners of valuable digital assets?  Will we be heading for a deeper depression, and how would all of that translate into the current value of your domain name portfolio.

In the short term, if you can sit on your names, you would probably be better off in the long run. The market uncertainty has thrown domain name values for a loop. Financial market volatility has a direct correlation with domain name investment values. As a result, now is not the time to sell your domain name to the end-user. Its also not the time to expect top dollar values on your domain name inventory.

The market is different and is reactive to today’s landscape. Folks are still trying to figure things out—and most importantly—stay healthy. We are faced with a new way of life now with remote workplaces, and limited exposure to the people we care most about. When the dust settles, domain name portfolios will evolve and some additional GTLD’s will continue to go by the wayside. Domain name starts will continue to suffer (a start is defined as a new potential domain name acquisition or valuation).

Brands push Pause

Just three weeks ago, domain starts were up. The market was robust and many startups, and emerging brands had major growth. 2020 was off to a great start and then boom. In a matter of weeks, things have dried up. Most acquisitions that were on the target board have been placed on hold, with buyers deciding to wait for the dust to settle from the outbreak. Things are rough and will continue to deteriorate.

Growth has turned into retraction with global markets reacting to their municipalities ability to control the spread. Simply put: things have frozen. People aren’t spending and have decided to stand pat. Hundreds of thousands of employees are losing, or have already lost their jobs around the World. Companies are scrambling for a plan to deal with the circumstances.

What should we do?

As with any alternative or digital investment, it’s wise to have a long-term plan. Domain names, are very similar to real estate and will ultimately retain value and upside. More specifically, .com digital real estate will continue to hold value. Additional TLDS will continue to fade out—at a fast clip than over the past two years.

  • Only sell if you need the capital—understand that the market is different so selling now, will probably not deliver top dollar for your asset.
  • Hold if you Can—now, more than ever, you should hold your inventory. You might be in it for a while at this point. Can you afford to wait for the proper rebound?
  • Don’t panic—there is always liquidity in domain names
  • Diversify your portfolio—now is the time to clean out the junk and trim the fat so-to-speak

We always encourage you to like our articles and share with your network. Keep a look out for additional pieces related to the current climate for domain names as an investment tool and provide your feedback if there are topics you would like for us to cover. Learn more by visiting our website. NameExperts.com

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Open the dictionary and pick a word – the .com of that word will almost certainly be gone. So, where do you begin when choosing a domain name that will help your business grow? NameExperts.com Director Joe Uddeme walks you through the whole process.   One of the most important decisions you’ll make about your business is the domain name you choose to acquire. The domain name you give your business is crucial because it becomes your identity on the web. You want it to reflect your brand and fit your business, but you also need it to be easy to find and promote. Acquiring a premium domain name is definitely the way to go, but choosing one can be difficult. What criteria should you be following to make sure you end up with the very best when you buy a domain name? This post is a little different to the others on the NameExperts blog – it’s a list of six key pointers to consider when choosing a domain name.   1. Pick a Short Name When You Choose a Domain What You Want to Avoid: When you’re just starting out playing with domain names to choose it can be tempting to combine all your ideas into one long domain name – like UsedCadillacsInTexas.com. However, while that may make it unique and descriptive, it may hurt your branding. What to Do Instead: A short name is easy to remember, easier to spell, and thus, has a better chance of becoming a household name. It also makes it easier when you want to branch out into branded items, or you want to create a logo, etc. Unfortunately, all the very easy 3-letter names were all taken as early as 1997, but there are plenty of others available that are appropriate. The shorter your domain name is, the easier it is to share through word of mouth. It’s also easier to type into your search bar, especially if you’re using a phone.   2. Pick Something Easy to Spell, Pronounce, and Remember What You Want to Avoid: A name that is difficult to spell can negatively impact your traffic because it can mean that users don’t land on your page. They might even end up with a competitor instead. You’ll also want to avoid using multiple spellings and the use of hyphens, numbers, or special characters. Your customers will often misunderstand numbers or misplace hyphens. People who hear your web address might not know whether you’re using a numeral or if it’s spelled out. What to Do Instead: This name needs to be easy to remember. Your customers need to be able to spell it correctly and pronounce it easily, so that they can easily share it with others (check out our guide to choosing a strong brand name for your business). Imagine you’re naming a child – you want something unique for your site, but you also don’t want a name that will create difficulties because of spelling or pronunciation. 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