Are domain names still viable investments?

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Are domain names still viable investments?

Are domain names still viable?

Common question; What is going with the domain industry? Why are things so quiet?

These are questions  domainers ask on a regular basis. Specifically, the past six months have quieted considerably in the domain investor marketplace.

Take for example these factors:

  • Limited quality TLD domain supply. (there just aren’t enough decent domain names remaining to invest wisely and succeed with an exponential ROI).
  • Alternative investments are eating away at the pie share. (Blockchain this, Crypto that. Stock market is strong and traditional real estate sales are robust as interest rates remain low).
  • Most of the top .com domain names inventory are controlled by only a handful of successful domainers. (75% of all beach front real estate is owned by a few dozen savvy domain investors.
  • The .com domain names deal of the past seem to be non-existent. (Investors have trouble finding a solid investment opportunity)
  • Investors from China have dried up. (Chinese domain names have dropped considerably in value over the past year and the investor market has been virtually non-existent.

What has changed?

As a result, domain investors are struggling to find good solid opportunities. Additionally, we can look at the effect of the stock market on today’s domain investments.

In most instances, we see a direct correlation between the performance of premium domains for investors vs. the stock market.

Alternatively, when domain investments are strong, we see a weaker stock market.

Furthermore, domains as an investment vehicle tend to have a longer sales cycle for positive ROI.

 

What’s the future of domain investing:

From a very high-level, domain investors will continue to look for alternative investment opportunities. Case-in-point, check out DomainInvesting.com’s recent blog post asking the question: Are you spending more time on crypto-currency, and related alternative investments?

In conclusion, as domain strategies change, domain investors need to adapt accordingly and focus on the longer-term investment as true, beach-front real estate. Domain opportunities continue to dominate the market.

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