Use your cash to develop your sites. PPC is getting diluted and the business must evolve. Purchasing more sites that slowly thin out your portfolio is not necessarily a good investment. Development of those great domains you own can be a much better return on your cash. This way you build a brick-and-mortar business on the back of your asset that can then be leveraged with the other sites you develop.

Conor

There’s a new generics and long-tailing trend, all related to what people actually type into the search box. And, as long as Internet is there, and someone doesn’t come up with a better naming scheme for web spaces, domain names are going to be a valuable investment. See this blog: domain-purchase.blogspot.com.

Generic domain names, if you are lucky to find a few, don’t cost any more than $10 a year each, to just park and forget and the herd is taking to it like crazy. Where do you get a better investment proposition? It’s not just a share or a bank note, it’s capital!

In June 2008, ICANN approved the resolution to limit domain tasting. The effect can be seen on this graph as many of the domain tasters immediately stopped mass domain tasting.

http://www.hosterstats.com/Detailed-com-Statistics-2008.php

The effect of domain tasting over the past few years really inflated .com to such an extent that millions of domains were being registered and deleted each day. It also inspired classic bubble crazes like the LLLL.com one. I think that a lot of those 4L sales were domainers selling to other domainers.

“While I agree the US economy is a total disaster and there is a global economic crisis, there are many other countries with a relatively healthy surplus.”

I agree with you.

Johnny: When you believe that happens, let me know and I’ll buy your portfolio for $1.

While I agree the US economy is a total disaster and there is a global economic crisis, there are many other countries with a relatively healthy surplus.

Not a good place. I’ll be looking there

Make sure to renew domains out as far as possible, especially the best of the best.

Times are gonna get slow for all advertising but when things bounce back more ad dollars will continue to move online thus making good domains increase in value.

What does the average domainer do then? Hide cash under the pillow? Put it in the bank? Fact remains generic domains are still among the best investments anyone can buy. The doomsday scenario you write about makes it even more important to keep investing in quality generics – not less.

If CPC completely disappears, sell the invested domains for multiple 100’s% profit. CPC going down does not devalue generics to the end user.