March 30, 2020

Domain Names and Covid-19

written by

Joe Uddeme

Joe Uddeme

Domain Names and Covid-19

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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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How to Choose a Domain Name

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Find the perfect domain name for your organization. 3. Avoid Hyphens and Numbers While it may be tempting to add hyphens or numbers to secure a domain, these can confuse users and reduce memorability. Stick to simple, clear names. The second level domain is critical for customer recall. 4. Check Availability Before settling on a domain name and TLD, check its availability. Many popular domain names may already be taken, so be prepared to explore variations. If you need help negotiating a name that appears to be off-market, it’s a good idea to partner up with an experienced domain broker. The Impact of TLDs on SEO User Perception Research indicates that users are more likely to trust and click on websites with a familiar top-level domain. A well-known second-level domain can enhance perceived credibility, leading to increased traffic for your company’s success in their respective country. Local SEO Advantages For businesses focused on local markets, ccTLDs can improve local search rankings. The root domain, represented by a dot (.), is at the top of the DNS hierarchy and contains all the top-level domains (TLDs), organizing domain names into different levels. Search engines often prioritize local relevance, making ccTLDs a valuable asset for local businesses. Content Alignment While TLDs themselves don’t directly impact SEO rankings, aligning your TLD with your content can improve user experience. A TLD that reflects your content’s focus can lead to better engagement. Common Misconceptions About TLDs Misconception 1: TLDs Are the Primary Factor for SEO Success While TLDs play a role in user trust and engagement, they are not the main determinant of SEO success. High-quality content, backlinks, and technical SEO are far more critical. Misconception 2: All TLDs Have Equal Value Not all TLDs are created equal. The second-level domain, which sits immediately to the left of the top-level domain, plays a critical role in defining the domain’s identity and is significant for branding and SEO purposes. An experienced domain name appraisal expert can help you find the true value of a name you’re interested in. Misconception 3: New gTLD’s are cheaper alternatives Familiar TLDs like .com and .org often carry more weight in terms of trust and user recognition than obscure or new gTLDs. While new gTLD’s are typically cheaper, they do tend to hold a larger renewal cost and lack credibility and equity that .com domain names add to any brand. How to Register a Domain Name with Your Chosen TLD Step 1: Choose a Domain Name Brainstorm a potential web address that align with your brand and audience. Ideally, it should match your brand name – which should be strong brand name that is representative of your business.  The second level-domain and dns hierarchy are good examples of properly choosing a domain name. A well-chosen web address can significantly impact user perception and SEO, making it crucial to select one that is effective and resonates with your target audience. Make sure to keep it short, memorable, and relevant, especially the second-level domain. Step 2: Select Your TLD Decide on the most appropriate TLD based on your target audience and business goals. Second-level domains are critical to top-of-mind awareness for your customer when finding the perfect domain. A third-level domain, also known as a sub-domain, can be used to organize different topics or language versions within your website while keeping the core domain name intact. Historically, third-level domains were significant for structuring website content, though they are less common in modern usage. Consider whether a gTLD or ccTLD best serves your needs. Fourth level domain levels involve rerouting the sub domains with a more specific field. Example: create.sub.agent.com. Step 3: Check Availability Use a domain registrar to check the availability of your chosen domain name with the desired TLD. Many registrars offer search tools to assist with this. Internet corporation for assigned names and numbers also offers a search tool to check Whois information. Second-level domains also become synonymous with your brand image and perception. Step 4: Register Your Domain Once you’ve found an available domain name, proceed with registration through a reputable domain registrar. Be prepared to provide necessary contact information and payment details. Step 5: Set Up Domain Privacy Consider enabling domain privacy protection to safeguard your personal information from public databases. Top Registrars for Domain Names and TLDs Choosing a reliable domain registrar is crucial for managing your domain name effectively. Here are some top registrars to consider: GoDaddy: One of the largest and most popular registrars, offering a wide variety of TLDs and excellent customer service. Namecheap: Known for its affordability and user-friendly interface, making it an excellent choice for new domain owners. Bluehost: Offers free domain registration with hosting plans, ideal for beginners. Google Domains: A straightforward option that integrates seamlessly with Google services. Conclusion Understanding top-level domains (TLDs) and their significance in domain names is vital for establishing a strong online presence. By selecting the right TLD that aligns with your brand and audience, you can enhance your credibility, improve SEO, and attract more visitors to your site. Whether you choose a traditional TLD, a country code TLD, or a new tlds, ensure it reflects your business’s identity and goals. By following the guidelines outlined in this comprehensive guide, you’ll be well-equipped to make informed decisions about your domain names and TLDs, setting the stage for online success in search results.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

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