The number of registered and deleted domain names is larger than the number of registered domain names. At times, it can be like looking at a database of broken dreams where people all thought that they were going to make millions from their registrations.
Many potentially valuable domain names went through Domain Tasting between 2005 and 2008. The ones that made money from PPC were kept and the ones that did not were dropped. Over a billion (1,000,000,000) .COM domain names were tasted. The stats are in the free chapters of the Domnomics book on the "Look Inside" link and they are quite staggering. With .COM, the expectation of being able to register 50K potentially high value domain names is akin to expecting to be able to still buy Manhattan for about $24 of trinkets. Some valuable domain names can still be hand registered but it is often a case of waiting for the market to develop. That means renewal fees. That's 50K reg fees + x year's renewal fees. Most of those registrations will not sell in the first year or even the second. That risks a situation where the renewals are being funded by sales. The profit from a great 4 or 5 digit sale will be burned on renewal fees for the domain names that did not sell. This is the side of portfolio domaining that is rarely discussed. And with 50K registrations, it is domaining at the level where it makes sense to have an ICANN accredited registrar instead of operating via retail registrars. If the 50K list is any good, it might be possible to monetise it with PPC.
Apart from high value keywords and short domain names, there is no guarantee that any other domain names on this hypothetical list will sell. The major unknown is the effect of .WEB, if it ever launches, as it more, than any of the new gTLDs, will impact .COM resale prices.
The problem with five year projections is that even the .COM is beginning to experience instabilities due to Asian market discounting. These registrations do not renew well. At the moment, one year renewal rates in .COM are around 57%. The blended renewal rate (all years) is around 72%. The problem for .COM, apart from discounting, is that growth in many country level markets outside the US is plateaued and the volume of growth has shifted to the local ccTLDs. Rather than focusing on a hypothetical list it would be better to understand the dynamics of the market before investing and the decide on then prospects for the list.
Regards...jmcc
Great answer with a lot of market insight. No surprise, more experienced / informed domainers are likely to be pessimistic about such an endeavor, and with valuable arguments brought forward.
This is, however, still a hypothetical thread / idea and number, and interesting for discussion.
I personally like to explore places where everybody says it's all taken. That's how I built my businesses over the years - being completely out of the box, dissonant, against the mainstream, sometimes even annoying to the firm beliefs of others. But that's where I always found gold. This doesn't mean though I'm getting in this tomorrow, but merely exploring the thought for now.
The math does you right. However, I believe the same math does my idea right as well. Out of a billion domains that are not there anymore, or ever registered,
there has to be something left. Statistically at least. But that's a mammoth task for a very powerful system. The 50K number is also a hypothesis; maybe the right number is 50 or 500. I can't tell and know no one who can tell right now.
Anyway - you brought up something very important, something I forgot to mention.
The AI will follow current trends and emerging markets. That's where the money is, and greatest likelihood to get something nice. I haven't mentioned this because I thought it's kind of obvious. So rather than scouring and regging, you have this theoretical system that can
- woosh - reg out the niche.
I'm theorizing, of course, but all interesting new things have started by exploring and certain ideas, sometimes even not new ideas. But of course, for each positive outcome there must be 10,000 dead ends out there.