Are domain names still viable investments?

domain names valuations

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.

Please join the conversation here

Join our Mailing list today!

Stay updated on current inventory for sale, current buyer requests, and tidbits about domain names and the acquisition process

100% Privacy. We don't spam.