As many of you know I love numbers and what you can or cannot interpret from them. After a bit of a hiatus I recently did a “dumpster dive” into masses of data to see how the domain world is progressing now that we are in the middle of a GFC. As an aside, I think that things are really serious when the media spawns yet another acronym for us to remember in the form of GFC for “Global Financial Crisis”.

Many of us are very concerned with Earnings Per Click (EPC) rates and the fact that they’ve taken a massive decline over the last 12 months in particular. There is nothing like a decline in revenue to get your attention in a hurry!

With a little bit of inspiration I graphed the EPC rates paid since August 2007 for a large portfolio of domains (ie. statistically significant) and the Google and Yahoo share price. What it showed was there was a strong correlation between the three data series.  In fact, I believe that the correlation is strong enough to suggest that as the Google/Yahoo share prices increase then the EPC won’t be that much further behind.

Here’s an interesting thought, “Does the EPC follow the share price or does the share price follow the EPC?” I’m not exactly sure at this stage but it does present a possible interesting predictor of either share price or EPC performance which may potentially provide a lucrative opportunity in either the domain space or the share market!

Some good news for domain owners is that all three graphs appear to be rising for the last few months. This rise will have two affects, firstly more money in domain owner’s pockets and secondly greater funds in the industry which will lead to more investment into domains by domain owners.

This means that for those of you who are cashed up and are snapping up bargains in the existing depressed market I think that this time will end in the not too distant future. Greater disposable revenue leads to greater investment which in turn leads to great competition for reduced numbers of domains. In other words, “make hay while the sun shines!”

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