Domain Industry Faces a Bigger Recession: Part III
After some interesting comments on the last article, I’m back again to take another look into this whole Domain Industry Recession from a whole different perspective. I hope all you readers out there enjoy Part III of this article and come back for my articles. Even if they aren’t about politics.
Economically, the United States of America is in a recession. The 700$ billion bailout plan was rejected and the stockmarket is like a great rollercoaster, with many ups and downs. Except, when usually the rollercoaster is for kids, in these last few months it’s been like the Raging Bull, (or some other really popular rollercoaster you all have heard of.)
While all of our legislature’s pick up the pieces of this shattered bill and put them back together like a jigsaw puzzle, everyone else is left to fend for themselves. Money is getting more scarce and people are becoming more frugal. Finally, my point is revealed here: People are becoming more frugal with their spending.
Simply, domaining to most is a hobby, a fun way to make money, and possibly lose some, while making many friends. Yet, there is a price to all hobbies whether it be buying that new engine for your radio-controlled model airplane, or finding the best registrar for that cool domain you just registered.
Small time domainers may be seeing this recession and keeping domain registering to a minimum, buying less possibly, or selling more. According to the law of supply and demand, if their are more sellers than buyers, that brings more supply, and prices may lower. This is the reasoning behind domain prices lowering. However, both you and I know domaining can’t be compared to on a day-to-day basis. It is more monthly or even yearly.
Of course, in this ever changing loophole filled article, I must say that domain prices may or may not follow this trend. I cannot personally see a big difference in prices between this month and the latter, however according to our capitalistic economy, prices should be dropping. But… (I promise this is my last one,) domainers may not even want to follow because some things just don’t effect us. Like kryptonite. Ok, maybe not kryptonite, but you get my point.
To summarize, people are becoming more frugal in their spending which may or may not effect us domainers. If it does, by the laws of supply and demand, prices should drop. Yet, the prices cease to change enough to make an impact. We shall see in following weeks what will become of this whole mess.