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Since the new year, four lettered .com domains have been really gaining. Domains which not long ago could have been hand registered were now being sold at after market for upwards of $65-75 dollars. Markets often correct and within the past few weeks it has been evident that these domain names are dropping back down to real prices.

What gives? Lots of things actually. This year lots of new domain investors came into the market. They smelled what look liked a boom and tried to cash in. Resellers all over the industry took notice and started buying up everything in sight. Prices sky rocketed and gained nearly every day. With the U.S. economy hitting a slow down, and less new money coming into the industry, it was only a matter of time before the shining beacon took a hit.

What does this mean for resellers? Holding time.  Many of you overpaid for some of these domain names and quite frankly, your going to have to sit on them until they’ve made their gains or are sellable at the acquisition price. Does that mean they were bad investments? Hardly. There are still gains and growth in the most premium and there will continue to be. The issue here is timing. Where you could make huge gains in days or weeks, now you must be patient and wait for the market to grow at a more moderate pace.

Those of us who invested across the board, in different kinds of domains, or even cashed out at or near the height did well. You managed to cash in on a market boom and are diversified enough not to take any major hit from its correction. This is the lesson to be learned. Diversify your portfolio of holdings, and trim down the fat.

Justin