Best alternative investments: Domain Names

It is often a case in history that, something that was often reserved for the elite, in a few years or so was also enjoyed by masses. For example, a breakfast or a supper often fit for a king in the early days can now be had by almost anybody. He just needs the money and he can step into any restaurant and eat like Louis XVI once did.

The same is the case with Alternative Investments. Once meant for only the rich due to its complexity, lack of liquidity and regulations, can or rather is accessible by the common man.

We at RFA are showcasing some Niche Alternative Investment themes and how to gain access to them.

Domain Names Investing: Well, to be honest, Domain name buying and parking has been going on since the 90’s. People buy Domain Names with expectations that someone will end up paying more than USD 10 they paid to buy the domain. Most of the investors in this space made a killing in 2015.

Chinese Buying Domain names: In 2015 the real story was not of a single domain sale that fetched millions. The massive demand of rare domain names by Chinese investors as an alternative investment has even surprised the stalwarts of the industry. Chinese preferred Domain names which can often be a combination of numbers or patterns often resembling short forms or abbreviations for Chinese cities or states are being sold like a commodity. According to industry reports, some of the interesting sales this year are highlighted below 899.com, 989.com went for over USD 800K while 588.com went for a whopping million dollars. It is might be interesting to note that, the repeating sequences like aabc.com command a higher value compared to the ones having vowels.

For any reader looking to jump  into the bandwagon, we got to tell you, all dictionary word domains are taken, all 4 letter combination domains are also taken ….the chances are before the end of 2016 all of 5 digit letter combination domains will also be taken. Don’t get us started on the number based domains. (We would probably need another post for discussing the same)

Google entering domain business: In 2015 for the first time, we saw the real intentions of google in the domain Arena. Although not widely reported, google domains are available for everyone in the US. Hence, you can buy, sell, host domain names as you need them.The competition is becoming extremely strong, recently Godaddy bought over 70000 domain names from Worldwide media group. The list of domain names included bikerentals.com, faculty.com, and ibill.com among others. These names are now sold to Godaddy customers at a premium cost.

Market makers: The real test in any asset class is the ability for investors to buy or sell when required. In 90’s you never had such marketplaces, but now the scene is different.We have websites like Flippa, Sedo, and even Godaddy that offer such marketplaces.

How to gain access to the alternative investments: Domain Names themes

Investment amount exceeding USD 10 and not exceeding USD 1000, Look to build a domain name portfolio, do your research on which patterns are on demand, try to look for expiring domain names from expired domains. (Buying expired domain names is by far the best bet if you are truly searching for value)

If you are looking to invest more then consider buying these Stocks, Godaddy (largest domain name registrar),web.com and Verisign (best bet).

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