Buying Domain Names | Domain Prices and the Economy

Take a look at this great article first published in 2010.  We than updated it paying particular attention to the prices of domain names.  This during the downturn economy with a brand new update!

Affect of the US Economy on Buying Domain Names

Update: Be sure to check the bottom of this post for an interesting update to this article we posted a while back.

Everywhere you look lately everyone is investing in gold, or at least that’s what they want you to think.  For the last few centuries people have been investing in precious objects.  Whether it be art, diamonds and yes gold, during times of strife, war and economic downturns.  Well now there are new investment opportunities.

We post a wide range of articles, most by our team here but some by other professionals, is rooted in our core values.  We succeed when our clients succeed.  Ultimately, we want to make money when our clients make money.  There is an old proverb “rising tides, raise all ships,” and we want to be part of that rising tide.

Below is an article by a guest author.  He discuses the relatively new idea of investing in buying domain names during the downturn.  Not only are many people NOT investing in domains but, the domain industry is seeing its first downturn ever.

Even with this current downturn in the industry, people are still seeing huge increases on investments from a few years ago.  We all would have loved to have been part of the investment opportunities of the mid 1990’s.  I probably would be sitting here right now if I knew to buy hope-com.  That or anyone of the other great names that sold in the millions.

Of particular interest is the discussion about 3 letter domains names and 4 letter domains.  In addition to how popular they’ve become in the emerging markets of India and China.  These two countries with half of the world’s population, who are now only beginning to go online.  At Brandings we have many available 3 letter domain names and 4 letter domain names as well.

One word of caution about this article though, we highly discourage purchasing a misspellings.  The author talks about buying “recession” with one “s.”  And while it may be getting traffic due to people’s incorrect spelling, people wont stay on the site.

Enjoy the article, post comments about any questions you may have and don’t forget to follow us on Facebook.

The US Economy and It’s Affect on Domain Names

As you are all likely aware the US economy is in a major slowdown, if not a recession officially? Bank failures, Government bailouts, and talk of another Great Depression has caused stocks to plummet, interest rates to fall, and spending to dry up.

Being a domainer myself, I have found that this is the perfect time to pick up those valuable domain names at deep discounts. Whether you are looking to shop for 3 letter dot-com domains, or generic word domains, the next several months promise to be prime time for buyers.

It is a buyers market for the first time in the domain industry since I have been investing. If you have the cash available, you might as well invest it wisely in what seems to be the future of business, domain names.

Rather then allowing your money to sit in the bank making 1-3% annually in interest, while inflation is over 4%, or investing your money in what is currently the most volatile stock market since the mid 1980’s, put your money to work for you by purchasing traffic domains which will earn you daily interest via parking revenue, while also appreciating in value greatly, especially after we come out of this current economic disaster we are in. Here are 2 things to look for while investing in the current domain name market.

#1 Untrademarked typo’s with traffic

Look for domains which are getting type in typo traffic. For example, buy domain names with the word recession spelled recession (with 1 “s”).  You may also want to go with anything that’s getting traffic currently. These domains can be picked up dirt cheap compared to the yearly earnings you may be making in a Bank CD.

#2 Three and Four Letter dot com domains

Without a doubt these short domain names are the future. There are only about 17,000 3-letter dot-coms in existence.  And over 50% of these are developed websites. The great thing about short dot com domains is that as people register the dot orgs, dot nets, and dot whatever other extensions their are of those letters, you will benefit from their traffic.

Also note that even 3 and 4 letter dot-coms with bad letters such as “z”, “x”, “q” can be goldmines 5 years down the road. China and India will have huge markets for these 3 and 4 letter domains.

In conclusion I would recommend that if you have extra cash sitting around, then jump into the domain marketplace.

  • Brian Krassenstein Manages the Talkgold forum at:  Article Source: http://EzineArticles.com/ Brian Krassenstein

Creative Names for Your Business:

  • fycor - core name to a cool company

Update: There’s good news and bad news update to this story.  We always like to start with the bad news so here it is:  the economy is still in the junker.  We looked at the date of the publication of this blog and not much has changed in the economy, sorry, that’s the bad news.

Here’s the good news: dot-com domain names have held or even raised in price.  With all the new domain name extensions and all the bad news in the marked dot-com’s have held their own.  It seams the slow recovery has not affected the domains.  This possibly due to the increase in users with China and India going online.  It’s very exciting!  We hope you bought your .com domain when this post first went out in March of ’10!

2 thoughts on “Buying Domain Names | Domain Prices and the Economy”

    • Thanks for the great comment. You know since we’ve written that blog a few years ago, the economy is a bit better and 4 and 5 letter domain name have just continued to rise. We saw recently saw that MyCV.net sold for 11K and that was a net. Kboing.com sold for 150K and many more.

      The one thing we have to say, after reading the article we were quoting. The author of the article says that you can make some good money in buying common misspellings and wait for the owner of the true spelling buy you out; we think that is a horrible idea. We’re sure that there are a lot of people that do that, and if it works for them fine but we would never suggest it. we think that if you are going to invest in a domain name that you invest in the real thing and that you build something on it.

      We would never suggest domain name scalping. You don’t want to run a business like that. Other then that that author is correct and that buying strategic domain names, especially five or six letter domain name was a great idea and is a great idea for the future!

Leave a Comment

Item added to cart.
0 items - $0

Free Newsletter!

Get naming tips, creative insights, special offers, “insider” guidance and other cool naming strategies from our naming experts.