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The Opportunity in Investing in High Quality Generic Domain Names

Updated on February 2, 2010

Most people outside the domain investment industry believe that during these difficult economic times, the industry is dead. However, the facts continue to disprove such sentiments. The domain industry is still very much alive and kicking. Despite the world tumbling into a financial crisis in late 2008, domain marketplaces continue to report impressive domain name trading. To pick just a few examples of some high quality generic domains that sold for big bucks; sold for $1.5 million in February 2009, for $5.1 million in March 2009, for $3 million in June 2009 and for $1 million in June 2009 as well. These are just a few examples of high quality generic domain names that have sold for millions. The fact remains that investing in quality domain names has and continues to enrich many people in a relatively short period of time.

Detractors of domain investing point to volatility and the roller coaster effect. Many in the media have unkind words for “domainers” and, the practice of buy low sell high seems to be shunned. This leads one to wonder at investments that are more “acceptable”, case in point, the stock market. What can possibly be more volatile than Wall Street or real estate given what has happened all over the world as a result of the global financial crisis. In fact, solid domain portfolios have hardly lost any value; the same cannot be said of stocks or real estate.

In fact, currently, few other investments can beat a portfolio of high quality generic domain names in terms of appreciation. Luckily, too, the domain industry today is no longer characterized by sheer speculation rampant in the late 90s and early this decade. The market now is better organized with sellers, buyers, marketplaces, valuation services and so forth. Domain name values are now based on factual data such as traffic, age, market niche, supply and demand.

Any savvy investor knows that at the moment, high quality generic domain names are a lucrative opportunity with the potential to net handsome profits. The demand for domains continues to grow as more and more people realize this.

In summary, high quality generic domain names are a profitable long term strategy for a few simple reasons. To begin with, high quality names are limited. Thus, there is an obvious supply and demand concern in the major industries. Secondly, new opportunities are arising in new areas. Many people all over the world, including the remotest villages in Africa, are going online at a frenetic rate. Non-English speaking countries are joining the bandwagon as well; the opportunities are massive. Finally, the domain name secondary market is huge. The average price of a high quality generic domain in the domain after sales market is $2,500. This should tell you just how lucrative an opportunity this is if you can do it correctly.


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