Domain Names Investing, especially in after market domains is not unlike investing in lots of other things but I like to compare it to real estate and that's been said before but the more I personally thiink of it that way, the more I am grounded in terms of making investment decisions. There's lots of blue sky that I can create in my mind, and that is really what is so cool and also so confusing about this game. The sky is the limit but my bank account isn't so I need to be grounded in a comparison with something else I'm more familiar with. Domain Names are like plots of land. I remember 20 something years ago, when I first moved to Arizona, it wasn't near as built out of course. Arizona has just exploded in terms of residential and commercial development due to the increase in population here of course. The Internet works the same way in my opinion. More people are online, therefore there is more demand for online real estate or web site destinations. Then just like anything else, you can attract the wrong element (poor content), and the land value can dip. Ok, so if domain names is like a strip of land, then the site that is attached to the domain, is like the building on top of the land. If the building is built poorly or the site, then the infrastructure will not hold up. You get the idea.
Having said all of that, my next post will focus on which domain names I like to invest in and how to build up online real estate using what technology and generally what someone needs to be successful. Digg this post and come back by September 16th and I should have a nice plan for someone looking at Domaining as a business. I'm also going to share some tips for people who are already in the business looking for opportunities. Here's another domain blog I contribute to that you might like.
