New year, new promises: How the #domain market will fare in 2021

Happy New Year! It’s 2021 finally and everyone hopes that the legacy of 2020 will miraculously disappear.

The domain investor community is looking ahead with a positive outlook, anticipating bigger and better domain sales in 2021.

With global travel pretty much stunted for the better part of the new year, it’s important to remember that Zoom calls will dominate the activity ledger.

NamesCon Online 2021 takes place from January 27 – 29 and promises a replay of its successful launch in 2020. The truth is that nothing compares to the in-person conference and there will be considerable fatigue from sitting in a box exchanging virtual handshakes.

In our opinion, until the world reaches herd immunity through global immunization against the Covid-19 virus, there will be very little to celebrate. The lackluster pace of administering vaccines in the US is a reminder of the sad numbers in human loss so far: 346,000 as of today.

The performance of the domain name economy cannot be based on a roster of fewer than 60 sales reaching or surpassing six figures in 2020. It’s dependent on the hundreds or thousands of sales that are achieved by average domainers; these sales are typically to end-users that invest in domains to increase their revenue of product or service sales. When the global economy is down, such money isn’t spent on domain names.

Where we’re heading with domain names in 2021 is a transitional period that will test the patience and financial resources of many. Past the euphoria of the first week of the new year lie 12 months of “same old” restrictions, tight budgets, and a market slowed down by the destructiveness of the outgoing administration in the US.

We are hopeful that everyone in the domain community will continue to be inventive with their financial resources and achieve sales that will sustain their business. In all honesty, 2021 will be a tough year to become a full time domain investor. Those with excess cash in hand should save 75% to 80% of their cash for the summer months, as opposed to spending it on domains that they won’t be able to flip in the next 18 months.

Should domain investors be scared, intimidated, or afraid of 2021?

2021 is here – Photo by Diego Jimenez on Unsplash

Of course not. The biggest challenge will be to maintain one’s portfolio intact, instead of liquidating it at prices below value. At the same time, seeking increased revenue solely from domains will be a failing strategy.

Content development will receive a big boost in 2021 and we are talking about launching real brands and products – not simply monetizing basic content with ads.

Being pragmatic and realistic early on this year, unlike last year, will save lives and finances.

Our best wishes to everyone in the domain industry; stay healthy, stay productive, remain optimistic but be aware of the challenges that will carry on in 2021.

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