Updated: 10/13/2008 02:00
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Many people nowadays are looking towards domain names as an investment I started my online domain investing after reading the

Many people now-a-days are looking towards domain names as an investment. I started my online domain investng after reading the much acclaimed ebook "Revenue Domains Exposed". With the stock market bouncing around, and the US dollar weak, domain name investing can be a very lucrative idea. In fact domain investments have gone under the radar for most people the last 10 years, even though over the last five years the domain name market averages an 80% annual increase in value.

In the last 3 years alone the average (L="letter") such as TFJ has gone from $1500 in 2004 all the way to $8500 in 2007. Thats an amazing increase in value. Even the country code top level domains are increasing at extremely fast paces. .cn, .fr, .es, .de, and .in are leading the way. Having said this, .com's will always be the charm of any domain investment portfolio. When anyone in the world thinks of a website they immediately think of .com. The growth of other domain extensions like, .net, .us, .biz, .org, and country codes will only increase the value of the .com version. If a domain such as xyz."in" starts getting traffic, it is only natural that a large portion of people looking for xyz."in" will type in xyz".com" instead. Why? Because .com is automatically associate with the internet. All the largest companies use .com as their extension. An Example....

What does this mean for the future of the .com domain industry?
Well, in my opinion, .com's even with multiple keywords such as "refinancemyhousenow".com will continue to warrant huge prices. There are 6 billion people in the world, and only a limited number of possible .com domains out there. The 3 character .coms will continue to increase in value as they are excellent for company initials. 4 character .coms will also increase at a faster pace then the rest of the market. I personally like the "Number followed by a 3 letter word or abbreviation" .coms. An example would be These are easy to remember, yet there are literally thousands of these left to be registered. Everyone quickly went after the LLLL.coms while avoiding the's.

Overall opinion of the domain market:
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. Only about 1 billion people are online worldwide, representing only 16% of the population. In addition to this, out of the 1 billion people online, only about 1-2% have their own website and or domain name. Look forward 10 years, when the internet is accessible in even the most remote areas of the world by people who can not afford it today. Nearly every person on the globe will have a website of their own to share photos, information, selling products, or just communicate with the other 6 billion people online. When this time comes the domain name marketplace will exploded with transactions.

Buy a domain, maybe just your name, or a child's name, ie,, because if you don't someone else will, and you may have to pay an arm and a leg for it 5 years down the road.

About the author

Nicole Berger has over seven years experience writing and editing for online and print media. She has held various editor and associate editor positions in some of forefront independent media publications. A consistently dependable team player, I thrive in a high-pressure environment, enjoy the challenges of meeting deadlines and managing a team, and am comfortable researching, writing and editing on a wide range of topics.
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