House prices are collapsing, the stock market is tanking, the dollar is being eaten away in your pocket by inflation and poor exchange rates. Everyone is looking for a safe place for their money but they’re also looking for the next big thing.
Well your search has ended because the next Real Estate boom is not going to be in New York or some Caribbean resort, but Domain Names.
Domain names have been called ever since their beginnings, because they are the internet equivalent of an address in the real world. The better the location of the real estate, the higher it’s value. And the same is true of domain names.
online Real Estate
In 2005, the 9th US Circuit Court of Appeals directed that despite being virtual in nature, domain names are to be considered exactly the same as an actual piece of real estate. And in true real estate fashion with its cycles of boom and bust, this 2 billion dollar online estate industry is now quietly coming into a boom.
But the domain name market isn’t near to bursting – it would have to be inflated in the first place and currently this is not the case.
Unlike the boom which ended in 2000, this boom is based not merely on speculation but on a diverse growth of the internet phenomenon.
The spectacular growth in the domain name market has become possible primarily because of a spike in internet advertising which grew by almost 30% in the year 2007 and is projected to grow by another 25% in 2008.
Companies and advertisers are still only cottoning onto the fact that a good domain name can be the difference between success and failure in the cutthroat world of internet business.
With so many sites and so much choice out there your site must stand out, and a great name has the ability to do this for you.
There have been some incredible reported sales in the tens of millions (for one name) and rumours of names going for even more in private sales.
A good domain name is a threat to the search engines as why search for something and get hundreds of irrelevant topics. Which means you have to trawl through pages of irrelevant data before you find what you’re after.
15% of internet traffic is type in. This basically means you type in the address of the url you’re after directly into the browser. For example: business.com, Dinnerjackets.com, Umbrellas.com, Freegames.com – By doing this you will be taken directly to the sites you’re after, making the search engines irrelevant. Also this type of “type in” traffic has been proven to convert nearly 80% more visitors than traffic which comes from search engines.
The fact that Internet advertising has the advantage of being very targeted and is also very cost effective, with a potentially vast audience. Means that much of the business world is now advertising online.
A lot of the domain names today are monetized through these ads, and the domain owners who run these sites have turned it into a lucrative business. Also these websites with developed traffic can fetch high prices in the premium domain market.
The secondary reason for a boom in the domain market is the success of various search engines like Google, Yahoo, and MSN. These engines enable a person browsing online to easily access relevant websites, thus making search engine optimization a very helpful activity for website owners who can then monetize the traffic they draw to the domain, or actually sell articles online.
Not only that, a website that is easily searchable on the internet can generate tremendous offline business possibilities for a bricks and mortar business as well. A lot of small to medium business owners have realized this fact and are trying to grab their own domain names, a situation which has further pushed up the demand for domain names.
The domain market boom is also related to the extremely rapid spread of the internet across the world, which is now moving from the largely saturated developed countries to developing nations, particularly populous nations like India and China. This steep increase in the number of netizens translates into revenue, and consequently a domain boom.
A great boost to the value of domains is also foreseen due to the inevitable further regularization of the domain market. Registrars are beginning to step into the premium domain market, and once they do, a lot more people are sure to snatch up which are now largely difficult to acquire because of the lack of proper regulations.
The domain industry can easily sustain this growth for the next decade or so, after which it could be overcome by saturation, or the emergence of new piece of technology that might reduce the value of domain names. But such a slump is a long time in coming to the domain market, which is now going from strength to strength.
The U.S. real estate mortgage might be on the brink of disaster, but this time a crash in stocks is less likely to affect the domain market. This is because unlike the 1990’s, online real estate has now generated enough strength to stand on its own, and to go on a boom notwithstanding a general recession.
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