Sunday

Savvy Investors are Snapping Up Domain Names

Make Money Online - Savvy Investors are Snapping Up Domain Names - Buying Domain Names is Like Buying Madison Avenue 110 Years Ago


Domain names are in the news again. This may not be new, but in my opinion the number of stories around investing in domain names or making money from domain names is increasing.

Almost every week a story appears in a mainstream newspaper or magazine about how much money some people are making from domain names. It is interesting to note that in Paula Mooney’s list of people making money on the Internet the top two - Kevin Ham and Frank Schilling - made their money (and a lot of it - $300 million for Mr Ham)) from domain names.

According Peter Lanson senior vice-president of NameMedia Inc's domain marketplace in Boston domain names are "a global, multibillion-dollar industry…. Customers need to find your doorstep. A brick-and-mortar business needs an attractive address, and it's no different online."
Money has started flooding back into web businesses. Online advertising has grown dramatically by nearly a third every year for the past three years. Domain names are hot.

NameMedia for example has raised $US100 million and now owns 750,000 domain names plus marketplaces where people can buy or sell names. Domain name trading is a whole industry on its own and imho is set to become even bigger as countries such as China and India get online and start trading in their own names. There are still plenty of good .in names to be bought now but soon a good .in or.cn name will be as difficult to get as a good .com name.

Internet Real Estate Group has a different approach it transforms premium domains – i.e. generic names such as jeans.com, chocolate.com, or software.com - into true internet businesses with content, ads and products for sale.

Sedo.com on the other hand handles over $US3 million worth of transactions every month, seling them in auctions, although in my experience you can wait a long time for any action on Sedo, you are just one tiny speck in a universe of domain names.

DN Journal, has recorded five sales this year that topped $US1 million each - including porn.com, seniors.com and chinese.com.

As Mike Zapolin, a founder of the internet real estate group Zapolin puts it "In real estate, if you built a building and were offered three times what you paid for it in a week, you'd be thrilled. A piece of virtual real estate, on the other hand, may cost a thousand or a million, but bring in 50 times greater return. It's like buying Madison Avenue 110 years ago."

You can look for domain names for yourself at places like domainesite.com and if you find a good one buy it for around $10 see What Makes a Good Domain Name. Then if it really is good you park it and wait (it may be a long wait but it may also prove to be a profitable wait in the long run). For more info. on domain names check out the links in the left-hand column.




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