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High Quality Generic Domain Names - Real Estate of the Future?

Updated on February 12, 2010

For the vast majority of people, the most well known way to make money is to invest in property. This is because property has traditionally made people very wealthy in the past. Unfortunately, without wads of cash to invest or access to favorable loans, property investments may not be within your reach. Investing in domain names is fast becoming an alternative investment. As demand in high quality domain names continues to grow, domain names are set to become the real estate of the future. Real estate shall be virtual and the people with the most prestigious zip code, read high quality generic domains, shall be the wealthiest.

Note that the emphasis here is on high quality generic domain names not just any domain. You need to acquire the right kind of domain names and know how to sell them when the time is right. A quick sampling of 2009 domain sales from a leading domain marketplace reporting website reveals that out of the top 50 premium domain names that sold for over $100, 000, about 85% were dot com generic domain names. The others that sold well were generic dot net, dot org and country code top-level generic domains for European countries. Thus, it is clear where to invest if you intend to make a windfall. The prices continue to appreciate every year. A domain name selling for $100, 000 this year was probably selling for half that amount two years ago. It therefore makes sense to acquire high quality generic domain names and hold onto them for a few years. A domain name going for $500, 000 today will probably be worth 2 or 3 million in three years time. It is an excellent long-term strategy and you cannot go wrong.

However, if you are not interested in a long-term strategy, you can still make lots of money with this virtual real estate. Just like stock speculators do, you can buy numerous high quality domains and then sell them each at a small markup. This way you would make your money on volume rather than waiting to cash in your chips after a few years. Many people are now doing this with fantastic results. Take for instance if you had a capital of $100, 000 you do not need immediately. If you buy 40 high quality generic domain names at $2,500 each and then sell them the same month at a small markup of 5% (sell at $2,625), you would make a total profit of $5, 000 at the end of the month. If you did not take this money out of your investment fund and ploughed it back, at the end of 12 months your investment fund would have grown to a tidy sum of $179, 586 – a 79.5% return on your money. This, in 12 months. I am yet to find an investment with the potential for such returns.


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