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Domain Name Investing
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June 22nd, 2010UncategorizedWith markets all over the place, the general public are progressively becoming interested in domain name investments . I mean why wouldn’t them consider domain investing, with the stock market jumping all over the place, and doubt everywhere? . Despite an increase in domain values of near 50% per annum over the last five years, the marketplace for these web address’s have gone relatively unnoticed .Without a doubt these are great investments .
In the last 4 years alone the typical 3 L .com (L=”letter”) such as CAH.com has gone from $2000 in 2005 all the way to $7000 in 2010 . Thats an astonishing increase in value . Even the country code top level domains are increasing at extremely fast paces. .cn, .fr, .es, .de, and .in are leading the way . Having said this, .com’s will always be the charm of any domain investment portfolio . When you tell your neighbor of a website, immediately “.com” comes to mind as the suffix . This is why I believe that as the other domain extentions grow, such as .tv, .me, .net, .org, .co.uk, etc, the .com’s will even become more valuable . If a domain suchas MoneyMakerGroup.in starts getting traffic, it is only instinctive that a large portion of people looking for Moneymakergroup.in will type in http://www.Moneymakergroup.com instead. Why? Because .com is mechanically associated with the internet. All the top companies use .com as their extension.
What are the implications of these facts on the future of the Domain Investing industry ?
It is my opinion, that .com domains will always warrent a premium over nearly every other extension, even the multiple keyword domaisn like HomeMortgageBank, etc . The 3 character .coms will continue to increase in value as they are excellent for company initials . 4 character .coms will also increase at a faster pace then the rest of the market . I personally like the “Number followed by a 3 letter word or abreviation” .com domain names . An example would be 4her.com. These are easy to remember, yet there are literally thousands of these left to be registered . Everyone rapidly went after the LLLL.coms and forgot about the NLLL.com’s.
My analytic thinking of the Domain Market in General :
Although we can’t continue to have 80% yearly gains in a limited market, eternally, I do feel that 50-60% gains for the next 5-7 years is a good bet . There are only 1 billion people online as of today. This is out of over 6 billion people worldwide. Only a small fraction of these peopel own domain names. . Look forward 10 years, when the internet is accessible in even the most removed areas of the world by people who can not afford it today. Nearly every person on the globe will have a website of their own to share photos, selective information, selling products, or just communicate with the other 6 billion people online. When this time comes the domain name marketplace will exploded with transactions .
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