Well obviously they are a little like real estate, but who thinks that domains WILL go up in general in 5-10 years? Its pretty safe to say that most property increases in value over long periods of time (with periods such as the current housing crisis providing bumps along the way)... are domains the same? Do you see domains as a good investment?
Yes, and I expect they will go up by a greater percentage than real estate (in almost all parts of the world).
No I don't agree with that. They are not going to go up. But if you purchase certain keyword domains which people might want in the future, then you have cashed in on something. But their value going up, mabye in the next 300 - 400 years? Nah, then we will probably have another thing whcih is hotter. Not to mention, we will be dead!
I guess i dont mean all domains, but decent and half decent ones will surely become more sought after
Yes, you are right on this. I also expect virtual estate ( i mean websites) which have good address ( i mean domain names) and which are popular would have a lot more value in near future.
Domains will continue to rise in value & that is why there is such an active community trading in domains. This is why they are like real estate and this is because of demand over supply.
It all comes down to supply and demand. Let me try and put it simply, without being too long winded. Every year a new generation of youngsters leaves school, college, university and you can bet your bottom dollar that a hell of a lot of them will end up working some sort of business, either partially, or fully dependent on the internet in one way or another. On top of that, with english still currently being the number one business language in the world, and the huge numbers arriving on the net from countries such as China and India, it doesn't take a rocket scientist to realise that a huge number of them will be looking for their perfect domain name, that instantly tells people, exactly what their business is about. Too, there are many emerging markets globally which will require new words, new names etc. Ok, so there are only so many true generic domains available that make absolute perfect sense in each industry sector. If the demand for that limited number of business names exceeds supply, then of course the prices will climb, as more people fight to own for themselves, the best names possible that suit them the most and can turn the best profit return for their online business activities. Now, there are name searchers and there are name searchers. I'd say about 90% of people searching for domains, havn't got the foggiest clue what they are doing and they register the most awful names imaginable, using hyphens, numbers, typos, or just plain daft sounding names, which they think sound wicked or cool. The other professional 10% name searchers are bypassing all the crap that's out there and they concentrate only on finding names that truely make perfect sense. Equate the parties mentioned at the outset with this 10% of much higher quality domain names and it's not difficult to see why the prices will continue to rise as demand for higher quality exceeds supply. Certainly, if you buy riff raff names, you can expect hopeless returns on your initial investment. If you invest in quality, it not only will last longer, but serve you a lot better in the medium to long term. Buying crap names is like building a house on a foundation of sand, investing wisely, buying the best names you can, and whilst you can, is similar to investing and/or buying a house built on a rock solid foundation. If the number of people registering bloody awful domains, just slowed up for a minute and thought to themselves, about the real market conditions, they'd quickly realise that it's better to hold onto their money, save it, for buying more expensive, much higher quality domain names that yes, will improve highly in value, given the passage of time, in this case, as you said, 5-10 years. I could trunter on, but have so much information in my head it would fill a book and today, I havn't the time to waffle on incessantly, my apologies. Anyway, I hope that lil tidbit of information helps not just you, but a few others too. All the very best in your domaining efforts. Mark Magawr
care to emphasize more? How would one become an aggressive domainer? Where do you pinpoint the value from the junk?
Sometimes I think it is more like the speculative Beanie Baby craze than Real Estate. Domain value for 'good' domains will trend up but if you buy at $8 and hold for two years you are betting that it will be worth more than double the value (8*2=$16). If you hold for 5 years you are betting you can sell for much more than $40 ($8*5). This is one reason to be cautious when 'investing' in more expensive country TLDS. My feeling is that good keyword domains will increase but nonsense 4 letter or crappy names will not.
Yes, I think it is very much like real estate: 1) There are certain properties that are very well located that will continue to appreciate in value. 2) To add value to the property, you need to build good sites (structures) on top of them that are attractive to visitors and help maintain the value of the real estate (land). 3) Most of the real estate is junk and will never have much value. I remember in the 1970s when a bunch of my friends invested in some swamp land in Florida. The land is still without any value. 4) There is very tough competition for good property, and there are professionals and networks of professionals who have studied this area and know what there are doing. Experience counts. 5) There are booms and busts - and lots of people lose lots of money during the busts. Rich
We are heading into a recession. During the 2000 - 2002 Internet bust, domain values went down considerable. The forthcoming recession will probably be worse, given that it will affect more people and will be worldwide. The domain market will probably be hit just like every other segment of the economy. Good domains should be able to retain value and do better after the recession is over. That could be months or years. No one can ever tell. Rich
Masterofdomains.... wrote: care to emphasize more? How would one become an aggressive domainer? Where do you pinpoint the value from the junk? ***** Whatever point you are trying to convey, just flew straight off over the top of my head. What, where does aggression come into the equation? Do I have time to reiterate the points already communicated when I'm not sure even to that which you are driving at? The short answer is no, not right now, I'm far too busy. If you would like to make yourself clearer, perhaps I can assist you when I have more time on my hands. Mark Magawr