The post was guest blogged by Andrew Knibbe from Flippa.com.
Interesting read especially from someone from Flippa.
Taken from the article :
It’s not difficult to see the parallels between this and the current state of the domain investment industry – where owners are discovering their portfolios can’t generate real cashflow and have little prospect of delivering capital growth.
Domain industry advocates will no doubt disagree with all this by citing a handful of premium domain sales.
A few events over the last few months, however, provide solid evidence that the domain investment party is officially over.
Firstly, Sedo – arguably the largest domain marketplace – acknowledged in their 2011 9-Month report that both their Domain Trading and Domain Parking businesses are in decline. We saw further evidence of this earlier this year with the exodus of key sales staff from their domain business. And, despite all the fuss and publicity, they’re still trying to find a buyer for teaparty.com.
Secondly, we’ve seen some of the industry’s most prolific commentators abandon the cause – or at least shift directions. Examples include Rick Latona doing this a few months ago citing that the domain bubble had burst as far back as late 2008, and Rick Schwartz just last week announcing that he was leaving the domaining pond to “jump into Rivers and Oceans”.
Thirdly, any remaining revenue being generated by a domain’s parked page is under constant threat from updates to Google’s algorithm. Even last week’s search update specifically called out that detected parked pages will no longer appear in search results (see point three at Google’s InsideSearch blog).
Read the whole article here