Domain Name Investors

An alert class of business people are investing in domain names as a means of income and appreciation.

These are not speculators, but rather people who do the serious work of calculating the return on investment of their capital.

A Diversified Investment from Real Estate and the Stock Market

Domain names offer an alternative to real estate and stock market investing, and an opportunity to diversify one's holdings.

Like traditional forms of investing, domain names can produce revenue as well as capital appreciation.

Revenue Producing Domain Names

Some domain names produce revenue by parking, with no work on the investor's part. The investor points the domain name to a page that serves up related ads. People click on the ads and the investor gets paid a portion of the revenue. This generates the least revenue for a domain name, but requires no work or further investment.

Other domain names produce revenue through developed websites. Some investors lease their domain names to people with websites. Others partner with developers or go it alone, to develop websites around their domain name.

There are countless ad programs and affiliate marketing programs that help website developers generate revenue from their websites, if the owners do not have their own products to sell.

Domain Name Capital Appreciation

Speculators and investors alike are betting on domain names growing in value and so far they have been right.

Domain names, both with and without websites, have dramatically increased in value in three ways.

1. First Tier Dot Com Domain Names - the best domain names in the .com TLD have continued to increase in price, if they are even still for sale. Many have been acquired by people and companies which have no intention of ever selling them.
   
   
2. First Tier Domain Names In Other TLDs - the best domain names in other TLDs, have gone up in price proportionately as much as the .com domain names. Six-figure domain name sales include Poker.de, Nav.no, Hotels.eu, RealEstate.net, Connected.co.uk, Date.org, Travel.info and Fun.mobi.
   
   
3. Second and Third Tier Dot Com and Other TLD Domain Names - mediocre domain names in .com and good domain names in other TLDs have been showing strong sales at four and five-figure prices. The norm for good quality domain names seems to be in the $1,000 to $10,000 range.
   
   

By Andrew Weitzen on August 2, 2007

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