Here are 10 reasons why you should be investing in domain names.
1. Internet Growth: The internet is large and growing. Worldwide retail ecommerce sales will reach almost $2 trillion in 2016 and it’s projected to grow by double-digits through 2020, where sales are expected to top $4 trillion. Now, while total retail sales in 2016 are expected to reach $22 trillion, 9% of all retail sales in 2016 growing to 18% by 2020 is a trend that we cannot ignore. And domain names are where that ecommerce is happening.
I recently picked up my son from an after-school activity and told him about a couple successful flips of domain investor Christian Calvin. He had an $81 purchase turn into $12,500 sale, and a $99 purchase turn into $9,000 sale.
My son was amazed, and then declared that he wanted to be the youngest Sherpa on a DomainSherpa profitable flip episode.
When evaluating domain names for purchase, one of my tactics involves a search of the top-level domains.
The tactic being this: if more extensions are taken for a given second-level domain, there are likely to be more opportunities for businesses to upgrade to this domain name.
There’s a Chinese proverb that reads: “The best time to plant a tree was 20 years ago. The second best time is now.”
The same holds true for anything in life, including domain name investing.
In the first 20 years of the commercial internet, the top 20 most expensive domain name sales of all time all sold for more than $5 million each. And they’re all in established industries like gambling, travel and investing.
There’s no exact retail value for a domain name. Just like there’s no exact value for a physical piece of real estate. Period.
If you wanted to sell your home and you asked three Realtors to value your home, they would go into the Multiple Listing Service and pull from the past couple of years all the sales in your neighborhood of homes similar to yours in geography and size.