Domain Names can make for solid investments.
Ever thought about diversifying your portfolio? Some clients prefer real estate, or the stock market as sound long term investments. Others’ prefer the typical CD or mutual fund low-risk investments as a way to diversify.
There are more and more investors breaking into ‘domain name(s)’ as an alternative long term investment, together with an influx of available inventory. As of today there are 1194 new GTLD’s strings on the market, currently available for all types of speculators and investors to jump on the hysteria bandwagon, and scoop them up.
Likewise, there are the other types of investors specifically invested in some of the older TLD’s . Namely, .com, .org and .net. These types of domain names present better opportunities to extract value in the long-term as an investment opportunity.
As an example, the .com tld string has plenty of solid domain name investment opportunities. The influx of additional GTLDs has greatly increased the supply of domain names into the marketplace. As such, we have seen the overall investment in .com continue, but at a lower rate of return. There are still solid investments and here’s what to look for in the name.
- How many syllables? Always remember that nine times out of ten, shorter is better.
- Keep it simple. Generic domains are very important for long term potential.
- Brands are strong-but typically harder to sell than generics
- Long term-think of things that will be around for a while. A name such as bride.com is far more superior and lasting than Fax.com.
- reduce your risk-short, single word, generic. coms that can add value by owning a category or niche
Talk to a reputable domain broker or expert to understand the value so you can determine if the domain name, or portfolio of domain names can retain and increase in value.
Domain investments can present solid opportunities if you do your research before acquiring a new domain name. Look into the history of the asset to understand its long-term capability.
We would be happy to discuss the acquisition strategy and help determine the value of a suitable domain investment. Shoot us a message to further discuss domain names as an alternative investment.