I’ve currently just registered my 100th Domain name in my portfolio, I’ve spent thousands of dollars acquiring domain names that I believe will have significant value in the future. I believe in domain names, just like how our parents (or grandparents) believed in real estate in the past, there’s lots of money to be made today and especially in the future. I believe domain names will bring fortune to a lot in the future and as to why, I’ve listed some advantages that I believe domain names bring:
Smaller startup capital needed
— Only $7.49 for a .COM —
One great thing about investing in domain names is that it is very inexpensive to start with (unless your plan is to acquire a lot of premium domain names or register hundreds or thousands of domain names). It costs around $7.49 for a .COM in GoDaddy and could go lower when registered in bulk. It’s all about getting traffic to your website to prove its worth (if not premium), SEO’s do play a big role in increasing its value.
Performs better than physical assets
— Better investment performance —
Unlike the physical assets, such as stock market or real estate, domain names usually performs better in an investment point of view. The reason is that it is generally more stable and is *less* affected by crisis or other factors that affect the decline of prices of other assets. With recession comes people saving money, so they stay at home more. Staying at home means more time to spend online and as they have more online time, the higher value our domain names become.
Optimistic views on growth on online advertising (traditional vs modern advertising)
— Positive Outlook in the future —
With the popularity of online media on the rise, sooner or later more and more advertisers are going to go online and just like offline, they would need to advertise. Thereâ€™s a lot of talks today which says that the death of newspapers are coming as more and more are moving online. In the U.S., Online advertising is finally overcoming the traditional advertising and is continuing to widen the gap between them. Domain Names are the best promotional tool as it gives natural SEO and picks up pageranks quite easily (in relation to relevant contents). (I’ve written here before) Online advertising is also generally lower in cost than traditional advertising, and does give a higher rate of Return on Investment (ROI) to the advertiser. So the more people switch to online media, the higher awareness and demand for domain names thus increasing the value of domain names.
— Window of Opportunity —
Thereâ€™s lots of opportunities to make money with domain names, everyday lots of TLD (e.g. .job, .info etc) that gets approved by ICANN. There are also ccTLDs that are coming up pretty fast with lots of premium domain names up for grabs at a normal register cost. You just have to be updated and know more about the domain name suffix that you’re investing.