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4 Ways to Be a Good Domain Name Investor
by Brian Krassenstein
When investing into domain names, one should
always follow some key guidelines in determining it's long term value. It is
often hard to put a value on a domain since there are so many different
variables playing into the valuation equation. Below I have listed a few
variables which will help you evaluate the long term prospects of a domain name
investment.
#1 The Domain Extension
Currently there are dozens of different extensions for domains. From com, to net
to org, to just about one for every country on the globe, it can get quite
confusing. So which domain extensions are the most valuable? Without a doubt .com's
have the highest values. This is for several reasons. First and foremost, almost
all large corporations use the .com version of a domain. This has caused this
extension to be programmed into the minds of millions, if not billions of
internet users as the defacto domain ending. This means that if you get a .net
.org, or any other extension your repeat visitors will likely go to the .com
version of your page because of the inherited authority of this extension. Note
that some country code extensions like .co.uk in the United Kingdom, and .de in
Germany are hot geo domain extensions for those particular regions, often hotter
the even .com.
#2 Natural Traffic a Domain Name Receives
When evaluating a domains worth, any natural type in traffic a name receives
will increase the value of that domain. For instance if you have a generic word
in the .com extension, it is possible that you may get traffic from people
looking for information on that generic word. You can then park this page while
holding it and earn a per click income on a daily basis. Generic termed domains
with traffic can fetch 10 times it's yearly parked income in addition to its
core value.
#3 Ease to Remember
Often you see domain names which are long, boring, and have "-'s" within them.
If you are looking for an investment grade domain, you do not want something
that is not memorable. A "-" within a domain name will often be looked over and
instead of "My-website," the visitor will likely type in "MyWebsite" without the
"-". With tens of millions of domain names registered, those that are simple and
easy to remember by their target audiences, will be the ones to hold, and gain
value.
#4 Possible Trademark Infringements
If you domain name uses words or a word that is a trademark, than you could be
in danger of the trademark owner filing a WIPO case against it and thus usually
taking the name from you. Be careful, and search Google for trademarks before
investing in a domain name. I have seen $100,000 domain names be taken from the
owners without compensation because of vague trademark disputes.
In conclusion, you should always use these above guidelines as well as comparing
potential investment domains to others that have sold recently. The domain
investment industry is growing, and so will the prospects of high returns.
Brian is a Domain Name Investor. You can find him posting at the
Domain Name
Forum and also at the Talkgold
Webmaster Forum.
Article Source:
http://EzineArticles.com/?expert=Brian_Krassenstein
http://ezinearticles.com/?4-Ways-to-Be-a-Good-Domain-Name-Investor&id=2085736
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