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Why Domaining is important?

icon1 Posted by SEO'd in Thoughts on 01 30th, 2008 | no responses

I am sure you have heard stories of individuals who struck millions by selling well known domains such as iPhone.com or creditcards.com. In fact, Business 2.0 had an article on these guys a few months back, and how cellphones.com fetched over $4 millions in cash. Of course, acquiring such domains is so difficult that you may ask yourself, why bother with buying useless domains?

Simple! Domain buying is like buying real estate. Think of it as long term investment. If you are lucky and hit the jackpot you may end up making millions in the process, but even if you are not lucky there are good reasons to buy and keep buying domains. One simple reason is that as your domains age they become more valuable. Think of them as a wine that ages and becomes better. Not actually but close. Older domains get more trust from search engines than brand new ones, and by planning for the future you can save yourself a lot of hassle.

Also, domains are like houses. We only have a limited number of really good domains but demand is very high for them. Apply the supply – demand rule to it and bam! we have an arbitrage opportunity. Many have made millions using this simple concept as I am sure many will in the future.

I personally wish I was smart enough to register iPhone.com 5 years ago. I just couldn’t see it coming then, and I just can’t see what’s coming in the next couple of years. But those who can have real advantages over us mortals. I guess iPhone was a lucky shot, but those who registered smallbusiness.com or creditcards.com understood the supply-demand early one, and that’s why they are probably sitting on a beach right now enjoying their lives. Very good domains are too expensive, but there are other domains that you can buy for cheap and utilize in the future (either in form of starting your own business or selling it to those who need it). You may not fetch millions, but still the arbitrage opportunity is there. Just ask BuyDomains.com.

Have a good domain name? Share it with us and you may find someone who’s willing to pay $$$ for it.



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