With marketplaces all over the place, the general public are increasingly becoming interested in domain name investments .  I mean why wouldn’t them consider domain investing, with the stock market jumping all over the place, and doubtfulness everywhere? .  Despite an increase in domain values of virtually 50% per annum over the last five years, the marketplace for these web address’s have gone relatively unnoticed .Without a doubt these are great investments.

In the last 2 years alone the typical 3 L .com (L=”letter”) such as TFJ.com has gone from $1500 in 2004 all the way to $7000 in 2010 .  Thats an awesome increase in value .  Domains with country code extensions such as .us, .de, .in, .me, and .tv are even showing huge gains in prices .  Having said this, .com’s will always be the charm of any domain investment portfolio .  When you tell your neighbor of a website, immediately “.com” comes to mind as the suffix .  This is why I believe that as the other domain extentions grow, such as .tv, .me, .net, .org, .co.uk, etc, the .com’s will even turn more valuable  .  If a domain suchas MoneyMakerGroup.in starts getting traffic, it is only instinctive that a large portion of people looking for Moneymakergroup.in will type in http://www.Moneymakergroup.com instead.  Why?  Simply because, the vast majority of internet users associate “.com” with websites since the largest sites such as Google, Yahoo, MSN, etc all use this extension
What are the implications of these facts on the future of the Domain Investing industry ?

Well, in my opinion, .com’s even with multiple keywords such as “refinancemyhousenow”.com will continue to warrant huge prices .      Because of the possibilities to use 2 and 3 letter .coms as initials for large companies, they will continue to collect attention in the marketplace .  The four letter .coms will also slowly pick up pace since short is often better .  I personally like the “Number followed by a 3 letter word or abreviation” .com domain names.  An example would be 4her.com.  These are easy to remember, yet there are literally thousands of these left to be purchased .  Everyone quickly went after the LLLL.coms while avoiding the NLLL.com’s.

My analytic thinking of the Domain Market in General :

Although we can’t continue to have 80% yearly gains in a limited market, forever, I do feel that 50-60% gains for the next 5-7 years is a good bet .  There are only 1 billion people online as of today.  This is out of over 6 billion people worldwide.  Only a small fraction of these peopel own domain names. .  One day, it is not crazy to think, that at least 80% of the world will have some sort of internet connection, while a majority will want their own website.  This represents an amazing growth forecast in the domain arena. .

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