Tuesday, May 06, 2008

Domain Names and the Recession

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Domain Names? Are they recession proof?
There are several answers to this question.

Lets look at the housing, the credit markets, and the Cost of living
Housing Status
As we all know right now in California, where Logic lives in Palm Springs the total number of homes that sold in April 45 percent of sales were repossession and these prepossessions are no bargain they have become the norm in housing sales.
Housing prices looking forward for 2008 based on price reductions for the 4 months of this year this far, tell us that houses are going to be 45% less to buy by the beginning of 2009 then they were in January 2008.

Credit Card Status
Credit equity loans are being cancelled or reduced to reflect the lower value of a current homes price.
There is also a credit crunch for credit card users which Logic admits to using these as well. The credit card companies are reducing the credit limits on cards raising the interest rates on the remaining balances to cover the very large default levels.

Groceries and Gas
We all know that these two pieces of our worlds are in bad shape and we know that the grocery prices are rising by and overall 30 to 40% estimate and that gasoline is at 4.00 dollars and more then likely headed to 5.00 dollars by the first quarter of 2009 estimated.

Economic Recovery our prediction
The world economy has its ups and downs, these are normal healthy adjustment to our well being. This economic recession we predict will last through and just into 2010 where the bottom will be indicator recognized as coming out of these times of economic adjustment.

What roll will this economic down-turn play on Domain Name Investing
We Viper Logic at ViperNames.com stopped buying domain names accept for the ones we need for particular projects in December 2007.
See we build our names one at a time into useful web sites for our financial gain. Yes you can buy names today and lightly you truly should they are cost effective, they are going to be here for ever at this point, and they when developed can bring you great financial gains like Logic and business partner Catnip are enjoying.

Why we stopped our daily buying from those club drops (places where domian names can be bought from people who have let them go or forgot to pay for them. This way of buying though makes each name cost between 29.00 and 69.00) was because as we are going to explain below in detail is to save our money for some top shelf domain names that should be coming on the market this coming year of 2009. If you create a name or you buy a name that someone has let go and no one bought it at a dropped name membership club then you can buy it for 9.95 USD here at ViperGate.com Domain Name sellers

Domain Names will be sacrificed and let go of for several reasons
There are a lot of owners, and some very large holders of domain names that own them for the sole reason to use these names as parked pages. Parked Pages are those names you might run across when you type in a name in the address bar of your Internet browser.

Parked Domain Name Ownership
When you arrive on these pages you will see non useful information with keywords those keywords for example: Email Marketing Services that are paid links to a sponsor or a Google or Yahoo style advertisement and when you click on these links the domain name owner gets a payment for that click like the PPC (Pay Per Click) advertisements on the major search engines.
However you rarely will find these parked pages while doing a search on Yahoo, Google, Live, or Ask because the search engines block Parked Pages from there search results.

Diminishing Traffic for Parked Domain Names
Also since these mid size to large domain name parked page monetizers will be as we are seeing today getting less traffic then the old days years ago when the parking pages formula worked and they even used to come up in search results. This was before to many people got into the buying domain names and building parked pages monetization game.

Next and we do not know about you but we would say that most of us when we need a product or service and it is not one in our favorites list then we just go to our favorite search engine and type into the search bar what ever we are looking for.
This is not how it always was, a lot of people including us and maybe you? used to go to our address bar and type in whatever we wanted for example ManagedWesiteHosting.com because you were looking for what you wanted and that would take you to that actual web site. Today that searching by anything in the address bar and adding the .com extension on the ending has ended for the most part.

Annual costs of maintaining a lot of Domain Names
Logic can attest to this one as our annual domain name renewals bill is large and we are discounted as a domain name seller so when we recently did the math for a best case scenario for a large Parked Domain Name owner we realized that just to break even on there expenses there renewals alone not including there parked pages web site hosting staff and other operating expenses put their cost at over 23.5 million USD.

When to grab a Great Domain Name and Why
This information is the crown jewel of getting in the Domain Name Investment Business for those that have the money to invest when the market is just perfect for two reasons.

Reason=1 Some of these Parked Page monetizers are going to have to let some inventory go to save their otherr names that mean the most to their portfolio. We do not park our domain names but here is our inventory of Domain Names here Domain Name Portfolio
They (parked page businesses) will have to let some inventory go for reasons of a lack of paid advertisers, lack of typed in .com traffic, and the search engine blocking parked pages issue.

Reason=2 If you can buy domain names now great this a will get you into the domain name investment business and get you on the road to learning and understanding what is a good domain name you can learn the how to buy a great domain name at our 11 steps to buying a domain name assistance web site here Domain Name Help
Once you buy these domain names you can develop them into a content rich and focused web site or a blog that will be search engine friendly and will bring to you great traffic. You can sell advertising space or sign up with a leading search engine to carry their relevant ad placements with ease.

Logic’s Logical Thought
Ok when and economy goes into a tail spin the whole world goes into the doom and gloom mode, we think this is just a natural occurrence in our DNA to survive in the urban jungle, we know it as living life, but like weathering a good storm if you plan, save and pay a little more attention then the next person then there are a lot of online real estate bargains to be had and they are coming our way in the coming 18 to 24 months as we head towards the bottom of this economic correction.
It is also very true that in a bad economy there are great opportunities for the savi investor, and we want to educat you to be one of these great bottom fishing investors that come out of recessions living large through a diversity of investments into the domain name world Logic lives in today. We know the domain name world very well and we are sharing this post with you our valued investors and friends about how we do what we do? Make Money.

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