Why Domain Names make a great investment

A question many people are asking themselves after all the recent economic turmoil is: Which asset class is safe? Safe for income, safe against inflation and most importantly offers Capital preservation. There are many things to look for when choosing an investment vehicle and I believe Domain Names satisfy almost all of these criteria.

Of course all domain speculators are looking for a great return on investment as everyone has heard of the six and seven figure sales that seem to occur quite regularly. But there are reasons other than capital appreciation that make domain names a great investment:

They are virtual – you don’t have to store or pay for upkeep (yearly renewal fee of $7)

They pay interest/income – You can park the name with a company that specialises in monetizing domain names, and split the advertising revenue generated. Or you can create a simple site and place adverts (adsense /affiliate) and keep all the revenue for yourself. This is incredibly easy and you need no web design experience.

You can develop them and turn them into a successful web business. (premium names are a business in a box.)

Local and regional economic fluctuations will have a diluted impact on your business as your site/asset is viewed by the whole world.

A site works for you 24 hours a day It never rests, sleeps, gets sick or moans you’re paying it too little – it just keeps working.

Asset security - Property and possessions can be taken from you as they are usually fixed in one location. A domain name is accessible in any country – it doesn’t matter where you are on the planet you can access your investment.

Investment Privacy - You can also hide the contact details, so people prying into your personal business will never know you own it.

As you can see these are just a few of the benefits of domain investing and the fact that they seem to have held up better than most asset classes during these troubling times is all the more reason they dererve a place in your diversified investment portfolio.

Domain names have been in the media for some time now. Sadly a lot of the press has focused on the negative aspects of our business such as Cybersquatting and Trademark infringement.

But there are also positive stories of incredible domain sales and how the business of buying domains has transformed the lives and finances of many people involved in the space.

Here are a few examples from this year so far:

Skiresorts.com $850,000 – 2008

Fund.com - $10 million - 2008

Datarecovery.com - $1,659,000 – 2008  

Cruises.co.uk - $1.1million - 2008

iReport.com - $750,000 – 2008

770.com - $330,000 – 2008

Fishing.net $52,500 - 2008

Filmschool.net - $49,500 – 2008

As you can see there have been some incredible sales this year and don’t expect it to stop. More record breaking sales will occur throughout the coming months even as everything else crumbles around us.

I’d be interested to hear of any other benefits you feel domain names offer investors.

James

Featured Domains:

L90.com - $3,000

Pily.com - $2,500

Walked.com - $9,000

Safari-Trips.com - $600

If interested in any of the above please send mail to James@floatingmix.com with sold by the name. Buyer to pay Escrow.

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