The Covid-19 pandemic created unprecedented uncertainty in the domain name market, causing companies to postpone planned acquisitions and domain investors to question portfolio strategies. Joe Uddeme’s real-time analysis from March 2020 advised domain owners to hold their assets rather than panic-sell in a depressed market. His recommendation proved prescient — premium .com domains retained and eventually exceeded their pre-pandemic values as digital transformation accelerated worldwide. This article captures the market dynamics during the pandemic and the strategic principles that apply to domain investing during any period of economic volatility.
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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Frequently Asked Questions
The pandemic initially caused a significant slowdown in domain acquisitions as businesses froze budgets and focused on survival. Domain "starts" (new acquisition opportunities) declined sharply within weeks. However, premium .com domains proved resilient -- like prime real estate, they retained their value while speculative and lower-quality domains declined. The subsequent digital transformation acceleration actually increased long-term domain demand as more businesses moved online.
Generally, no. Economic downturns create poor selling conditions because buyers are cautious and budgets are restricted. Unless you need immediate liquidity, holding premium domain names through periods of uncertainty typically yields better long-term returns. Domain names have minimal holding costs ($10-$15/year renewal), making them inexpensive to maintain during downturns. Use periods of uncertainty to audit your portfolio, eliminate truly underperforming assets, and position your best names for the eventual recovery.
Premium domain names are relatively resilient during recessions, though not entirely recession-proof. Short, keyword-rich .com domains tend to hold their value because they represent finite digital real estate with permanent utility. However, speculative domains, new TLDs without established demand, and overpriced niche names can lose value during economic downturns. The key distinction is quality: premium domains with genuine commercial potential weather economic storms far better than speculative inventory.
