Domain Name Investing
Many people now-a-days are looking towards domain names as an investment . 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 average LLL.com (L=”letter”) such as CAH.com has gone from $2000 in 2005 all the way to $8000 in 2009 . This represents an amazing return, even compared to gold in most cases . Even the country code top level domains are increasing at extremely fast paces. .cn, .fr, .es, .de, and .in are leading the way . Even if this is the case, the .com domains will always, in my opinion, be the granddaddy of them all . When anyone in the world thinks of a website they immediately think of .com . 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 turn more valuable . If a domain suchas MoneyMakerGroup.in starts getting traffic, it is only natural that a large portion of people looking for Moneymakergroup.in will type in http://www.Moneymakergroup.com instead. Why? Simply because, the vast majority of internet users associate “.com” with websites since the largest sites such as Google, Yahoo, MSN, etc all use this extension
What are the implications of these facts on the future of the Domain Investing industry ?
Well, in my opinion, .com’s even with multiple keywords such as “refinancemyhousenow”.com will continue to warrant huge prices . There are 6 billion people in the world, and only a limited number of possibile .com domains out there. Because of the possibilities to use 2 and 3 letter .coms as initials for large companies, they will continue to amass attention in the marketplace . The four letter .coms will also slowly pick up pace since short is often better . 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 hundreds, or even thousands of these left to be purchased . Everyone quickly went after the LLLL.coms while avoiding the NLLL.com’s.
Overall opinion of the domain market :
Of course we won’t see 50-80% gains each and every year forever since the market would become a bubble, nevertheless, I do foretell substantial gains in the years to come, especially with the .coms . 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 remote 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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