Investment Inn

Many people now-a-days are looking towards domain names as an investment .  With the stock market bouncing around, and the US dollar weak, domain name investing can be a very remunerative idea .  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 3 years alone the typical 3 L .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 .  Domains with country code extensions such as .us, .de, .in, .me, and .tv are even showing huge gains in prices .  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 such as Money Maker Group.in starts getting traffic, it is only instinctive that a large portion of people looking for Money maker group.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 ? It is my opinion, that .com domains will always warrent a premium over nearly every other extension, even the multiple keyword domain like Home Mortgage Bank, etc .The 3 character will continue to increase in value as they are excellent for company initials .  4 character 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 purchased .  Everyone rapidly went after the LLLL.coms while avoiding the NLLL.com’s.

Of course we won’t see 50-80% gains each and every year forever since the market would become a bubble, nonetheless, I do foretell heavy gains in the years to come, especially with the .coms .  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 .  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 .