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January 28, 2016

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Here's the The Lowdown from DN Journal,
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to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

Andrew Rosener Says China Wasn't the Only Big Change in 2015 - Veteran Broker Also Shares His 2016 View

The 12th annual State of The Industry Cover Story that we published yesterday was pretty comprehensive with 13 experts sharing their views on the most significant events of 2015 and what they are predicting for the year ahead. However, one thing was missing - one of our experts! 

That was entirely my fault - a mistake that will be corrected in this article. I send out requests for comments to leaders in every sector of the industry each year (and invite some new people every year to keep the mix fresh). This year as  the responses came back in I filed them in an email folder so they would be close at hand when I got back from NamesCon and could start putting the story together. However, one response came in the night before I left for NamesCon. I had already shutdown my desktop computer for the trip, so the email was downloaded to my laptop instead. The problem was I forgot to get it off the laptop when I got home so it wasn't in the story folder.  

2015-2016 image from Bigstock

As it happens was one of the responses I wanted most. With the domain boom in China being on everyone's mind, I reached out to more top tier brokers than usual to get their take on the phenomenon and whether or not they thought it would continue in 2016. So, it was especially perplexing to find out I had misplaced answers I had gotten nearly 3 weeks earlier from ace broker Andrew Rosener from MediaOptions.com. Being the nice guy that he is Andrew understood, assuring me that he was even more forgetful than I am (not likely!) and I appreciated that.

On the plus side that gives us an insightful Bonus Round to further expand the views shared in this year's story. Here is what Andrew had to say:

"Clearly, the largest trend in domain names for 2015 was the explosive Chinese market. However, beyond that I think that at a higher view, our industry evolved in a big way.  When I think back to my beginnings in the domain industry I imagined a market that would one day offer liquidity, fast and safe transactions on demand and a greater degree of transparency.   In 2015 we saw tremendous leaps forward on all of those fronts, particularly liquidity. The number of buyers in the market for strong .com domain names is unprecedented and it is not just the Chinese.  The Chinese were the fire that was needed to take this industry to the next level, but now that we are on our way I think it will become more clear in the near future how big this industry actually can be." 

"We are in an amazing place in time for the domain name industry and the internet as a whole. An incredible number of outside influences are going to direct the market in 2016, everything from fluctuating currency,  

Andrew Rosener

China’s Yuan becoming a reserve currency, Virtual Reality, 3D Printing, the potential for India to become the next China (although less optimistic about this) and the economy (at least in the USA) possibly shaking it off after nearly a decade of stagnation."

"Look for continued growth in short domains and one word .com brands in 2016. Potentially exponential growth.  But by the same token, expect tremendous amounts of volatility and uncertainty.  Have faith in the fact that a great domain name continues to be one of the greatest single asset investments you can make, ever more interesting and valuable by the day as governments increase currency controls and restrictions. There will be more money entering the domain market than we have ever before seen, but it will be highly concentrated on top tier domain assets. Long domains (3 words plus) will continue to fall out of favor for many reasons and shorter is better will continue to be the mantra. Expect a lot more consolidation of companies (service providers) as well as portfolios. The way we think about domain name sales and end user transactions may very well get turned on its head with innovative lease or lease to own options coming to market."  

Andrew Rosener speaking at the 2010 T.R.A.F.F.I.C. Vancouver Conference in Canada.

Thanks again to Andrew for sharing his insight. While I wish I had gotten it into print when I was supposed to, it wound up being a pleasant surprise in another way - kind of like taking down the Christmas tree only to find a really cool package still under there that you missed Christmas morning!   

(Posted January 28, 2016)   

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