The Future Of Domain Names is very bright, as domain names are hot commodity in the present web-centric world. They present a huge opportunity to investors to earn a decent profit on their investment. The beauty of domain name investing is, even small investors can invest in domain names from the comfort of their homes. Domain names are selling starting from hundreds of dollars to hundreds of thousands of dollars everyday, not to speak of very good brandable domains are selling for millions of dollars. Recently in July 2016, Remediating.com sold for $67.7 million in eBay auction to an anonymous bidder setting a world record for domain name price, previous record being $35.6 million for Insurance.com in 2010. The general consensus among domain name industry fraternity is, internet has grown enough to present a unique opportunity for investors to invest in domain names that can be sold for a decent profit in the future.
Domain Names – A Commodity With Huge Potential
Domain names are just like a valuable piece of land in a prime location. Domain names is a first of its kind commodity with huge potential for future profits. A lot of internet veterans are treating them as a “Cyber Real Estate or Virtual Real Estate. The world has never been presented with such an opportunity for investors. When the internet was in its infancy in the 90’s, very few visionaries, who believed in the future of internet, saw the potential of domain names and made mega-fortunes.
As the internet is expanding exponentially with addition of millions of users every year from around the world, there is opportunity for every investor to have a piece of the cake. Consider the following data to make a fair assessment of possible growth potential of internet and domain names industry. According to United Nations population statistics, the world population, as of beginning of 2016, is 7.4 billion with expected addition of 80 million people every year. This huge population growth along with exponential growth in laptops, smart phones, tablets, and other hand-held devices, will enable millions of people to discover potential of internet and access it, adding millions of new users of internet every year. Thus, this is the most exciting phase of the domain name industry to realize its full potential.
Present State Of Domain Names Industry
Presently good domain names that are short, catchy, and easy to remember are in demand and are attracting very high prices. Two-letter dot coms, which were sold for an average of $100,000 in 2006 are selling on an average for million dollars. So, it is not surprising that all the three-letter and four-letter .com domains are already gone, and five-letter ones are going fast and will be gone soon. Right now, one-word domains are diamond, two-word ones are gold, three-word domains are silver. Investors holding above mentioned domain names can expect a bonanza in the future.
The domain names industry has reached near-maturity point. There are good number of registrars, hosting companies, several online market places to buy and sell domains, dozens of brokers help buy and sell domain names. Most investors are making money; some are flipping for quick profit, some are selling for good prices in the medium term, some early investors are reaping good profits and reinvesting for future, and some investors are buying and building portfolio for future profits. Overall most investors are happy and looking forward to more happier times.
Future Trends Of Domain Names Industry
With technological advances in cyber security, secure payment methods, and fast delivery systems , more people are buying a variety of goods and services online. As online businesses and E-commerce companies like Amazon.com are flourishing, many businesses will feel the need for an online presence and a web address to locate their business on. All these businesses will compete to buy a suitable domain name. This presents a huge opportunity to investors who invest today to reap a huge profit in the future.
If the present trend continues, which is certainly most likely, an investment today on a good four-letter domain or a short and catchy domain will appreciate 20-30x in 10 years, as short domain names become a rarity by that time.
Domain names is a rare never before seen commodity with huge potential. Bright future and huge profits awaits domain names investors, small and big. Domain names industry has reached a near maturity stage and is poised to grow exponentially, presenting huge opportunity to investors to reap bumper profits.