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 uncertainty everywhere? . In fact domain investments have gone under the radar for most people the last 10 years, even though over the last five years the domain name market averages an 80% annual increase in value .Without a doubt these are great investments.
In the last 2 years alone the average LLL.com (L=”letter”) such as TFJ.com has gone from $1500 in 2004 all the way to $8000 in 2009 . Thats an awesome 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 . Even if this is the case, the .com domains will always, in my opinion, be the granddaddy of them all . 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 turn more valuable . If a domain suchas MoneyMakerGroup.in starts receiving traffic, it is only instinctive that a large set of people looking for Moneymakergroup.in will type in http://www.Moneymakergroup.com instead. Why? Because .com is automatically 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 ?
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 garner attention in the marketplace . 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 hundreds, or even thousands of these left to be purchased . Everyone quickly went after the LLLL.coms while avoiding the NLLL.com’s.
My Analysis of the Domain Market in General :
Although we can’t continue to have 80% per annum gains in a limited market, forever, I do feel that 50-60% gains for the next 5-7 years is a good bet . Only about 1 billion people are online worldwide, representing only 16% of the population. In addition to this, out of the 1 billion people online, only about 1-2% have their own website and or domain name . One day, it is not crazy to think, that at least 80% of the world will have some sort of internet connection, while a majority will want their own website. This represents an amazing growth forecast in the domain arena. .
