Which extension(s) best for investing? [May vote for more than one]

[DomeBase]

POLL:

"Which extension(s) are the best for investing in domain names -- considering differences in current prices and your expectations of possible increases or decreases in future value?"

MULTIPLE ANSWERS ALLOWED:

You can vote for more than one extension by checking more than one box before clicking on the vote button. Unfortunately, the poll function only allows us to list 10 choices so if you wish to highlight other extensions that are not listed, please post them in the thread below. Please check the box for ".## = country extension for my own country" if you think it is worthwhile for you to invest in domains with your own country code extension. Please -- check the box for ".US (although I do not live in the United States)" if you do not live in the United States, but think that it is worthwhile for you to invest in .US domains -- check the ".DE (although I do not live in Germany)" box if you do not live in Germany, but think that it is worthwhile for you to invest in .DE domains -- etc. I regret not having space to list all major country code domains, so I listed the largest. Feel free to highlight others in the thread below.

EXAMPLES:

If you think that ".COM rules" and no other extensions will ever have much value, then vote for .COM only. If you think that .COMs are over-priced relative to their likely future value, .NETs are under-priced relative to their likely future value, and no other extensions will amount to much, then vote for .NET only. If you like a portfolio of .COMS, .NETs and .BIZs, then vote for all three -- .COMs, .NETs, and .BIZs.

BACKGROUND:

A similar poll was conducted at DNForum back in November, 2002. We will analyze and report changes in responses between these years as well as the current pattern of responses. Thank you for participating in this poll.

 

[FineE]

I voted for my country code, .ca.

 

[DomeBase]

I personally think that .IN (country code for India) has potential, but did not have room to include it in the poll due to the 10 line size constraint. Reasons for my view? (1) wide use of English; (2) growing economy and large proportion of tech savvy; (3) clear rules on access to registration and selling by folks outside the country; and (4) nice, short, pronounceable extension. Of course, like most new things, it is a gamble. If you want a sure investment, then buy stock in a company with an unchallengeable monopoly like the film-maker, Kodak, or IBM, the monopolist on personal computers, or .COM, the monopolist on...

 

[stuff]

Looks like my favorite (.com) is leading.

 

[DomeBase]

Looks like my favorite (.com) is leading.

Probably everyone would agree that .COM has the most (resale) value, holding everything else (including purchase price) constant...

...and probably almost everyone would agree that .COM has the most secure and well-documented (resale) value, even considering differences in purchase price.

It gets more interesting and one gets more differences of opinion on the extent of that lead over non-.COM extensions, which non-.COM extensions offer a good return given the risk, and what the trends are in these matters.

I remember in 2001 whenever the subject of .INFO came up, that the vast majority of domainers said "Yeah, worthless, just like .CC. There are no documented .INFO sales of any value." Today, I *rarely*, if ever, hear that any more.

I personally do not believe that any alternative domain will dethrone .COM from the top spot in terms of value, but I do think that the game is afoot with respect to non-.COM extensions being legitimate components of a portfolio of domains (some low-risk low-return, and others higher-risk, higher potential return).

I will be interested to see how this poll evolves and to compare it to the results tallied on this very forum over two years ago.

 

[A D]

I personally think that .IN (country code for India) has potential, but did not have room to include it in the poll due to the 10 line size constraint. Reasons for my view? (1) wide use of English; (2) growing economy and large proportion of tech savvy; (3) clear rules on access to registration and selling by folks outside the country; and (4) nice, short, pronounceable extension. Of course, like most new things, it is a gamble. If you want a sure investment, then buy stock in a company with an unchallengeable monopoly like the film-maker, Kodak, or IBM, the monopolist on personal computers, or .COM, the monopolist on...

I believe .in will be big but will take 5 years.

-=DCG=-

 

[Auction]

A big .com only vote if it was between (com, org, biz, net, info). As for country code extensions I really don't know.

 

[DomeBase]

I believe .in will be big but will take 5 years.

-=DCG=-

I hope so. I mistakenly turned up my nose and did not participate in the rush when .US came out, but I did act to get some .IN names. I do not expect to sell any time soon, but rather plan to develop some geographic portals.

 

[alex_d]

I dont think anything will beat .com, but it would be nice to see an expansion of the other domain extensions, as trying to find a good .com domain is very difficult

 

[StockDoctor]

“Which extension(s) are the best for investing in domain names -- considering differences in current prices and your expectations of possible increases or decreases in future value?”

Such a tough question and so funny to see that the members automatically reach for that .com button without a clue.

"Best for investing" What models are we talking about here?

*Purchase (or drop catching) for resale
*Url bar type-in traffic revenue
*Search bar type-in traffic revenue
*Development revenue or resale

Also, shouldn't we be looking at some common denominator when making these comparisons, like an Internal Rate of Return calculation? Shouldn't we also then take into account variables such as risk as mentioned in one of Domey's posts above? Even more, how do we compare "market entry" when a majority of the domainer secondary market may be increasingly locked out of participating in the high end .com price levels, begging the question "best domain investment for who".

For example: At what point does it make more sense to spread the risk of a $1k investment over 1000 .info domains (for resale or search bar type-in revenue) versus 1 .com with url bar type-in revenue? Which choice offers the best chance for appreciation on resale? When does the decreasing costs and time required in development occuring now impact the investment decision?

 

[Domagon]

There are still numerous decent .COM domains on the resale market (and many still unregistered) that are relatively inexpensive - even with only $1K one can easily buy dozens of .COMs, if one focus on some niches they feel have growth potential ... be it in specific subject areas, type of domain / length - ie. 2 word, acronyms, 4-letter, 5-letter, etc.

Some of the well known domain sale listing services have areas dedicated to super low priced domains, including numerous .COMs; many of which, despite their highly discounted prices, in my view, have decent investment growth potential.

One can easily say the same for many other TLDs - the big risk from an investment aspect with them though is confusion ... for example, many domainers have felt that .INFO is the hot new (as in allowing open registration) "alternate" TLD to be in ... but then, haven't we seen that before with .TO, .CC, .WS, etc.

Point is that all the other TLDs are likely to continue to switch places with each other in regards to usage/popularity (folks with some foresight and luck in figuring out the next "hot" TLD of the year, such as perhaps .IN, will make $$$) and thus .COM will tend to remain the TLD people, and consequently companies, etc as well, gravitate to when in doubt - it's the safe choice ... and is why in large part I personally feel .COM is the best TLD overall to invest in.

Ron Bennett

 

[Auction]

There are still numerous decent .COM domains on the resale market (and many still unregistered) that are relatively inexpensive - even with only $1K one can easily buy dozens of .COMs, if one focus on some niches they feel have growth potential ... be it in specific subject areas, type of domain / length - ie. 2 word, acronyms, 4-letter, 5-letter, etc.

Some of the well known domain sale listing services have areas dedicated to super low priced domains, including numerous .COMs; many of which, despite their highly discounted prices, in my view, have decent investment growth potential.

One can easily say the same for many other TLDs - the big risk from an investment aspect with them though is confusion ... for example, many domainers have felt that .INFO is the hot new (as in allowing open registration) "alternate" TLD to be in ... but then, haven't we seen that before with .TO, .CC, .WS, etc.

Point is that all the other TLDs are likely to continue to switch places with each other in regards to usage/popularity (folks with some foresight and luck in figuring out the next "hot" TLD of the year, such as perhaps .IN, will make $$$) and thus .COM will tend to remain the TLD people, and consequently companies, etc as well, gravitate to when in doubt - it's the safe choice ... and is why in large part I personally feel .COM is the best TLD overall to invest in.

Ron Bennett

Exactly, I think the more clouded the marketplace becomes with new TLD's the better off the .COM extension will be. That is not to say there is not plenty of money to be made with new TLD's. I just think in the long run .COM is your best bet.

 

[zouzas]

interesting that combing all country codes in this poll out ranks all other extensions except .com,,targeting local markets can only come from country code extensions, more and more companies are figuring that out.

 

[DomeBase]

Such a tough question and so funny to see that the members automatically reach for that .com button without a clue.

"Best for investing" What models are we talking about here?

*Purchase (or drop catching) for resale
*Url bar type-in traffic revenue
*Search bar type-in traffic revenue
*Development revenue or resale

Your points are well taken, Doc. Domains can have value because of type in traffic, search engine traffic, keyword development potential, new technology gamble, new TLD gamble, etc etc. All of these factors might play into how one perceives financial return as correlated with TLD. In the extreme, if one values domains pretty much entirely based on their current traffic (e.g. PPC model), which seems to be a strong movement at the moment, rather than development potential -- then in some respects the actual domain (including TLD) does not matter! I think that all these valuation methods are in use and in flux at this time. I also think that there are analogies between stock portfolio theory and domain portfolio theory. A mix of domains with value from current type-ins, search engine traffic, keyword potential, .COM and new TLDs may provide the investor with a more diversified and lower risk portfolio than only one type of value investing.

interesting that combing all country codes in this poll out ranks all other extensions except .com,,targeting local markets can only come from country code extensions, more and more companies are figuring that out.

I do think that the relative importance of country codes to generics is an interesting trend to watch. It is also interesting to see which of the country code TLDs become speculated upon globally. It looks like there may be more global investing in .US than some other country codes. I wish that I had more lines in the poll to include .CN, .CA, and .IN -- among others.

 

[Provider]

definetely .ca names the best for investment percentage wise. You still register pretty good names that will bring you 300% percent guaranteed during next 2 years

 

[StockDoctor]

definetely .ca names the best for investment percentage wise. You still register pretty good names that will bring you 300% percent guaranteed during next 2 years

That's what I like, "guaranteed" returns of "300%" on those .ca domains predicted 2 years into the future.

I've spent 25+ years as an Stock and Bond Analyst and still have problems predicting any returns over double digits. Can you take a look in that crystal ball of yours and tell me which stocks or bonds I should be buying this year? Would save me a lot of work.

Whilst you're at it, can you look and tell me who's gonna win next years Kentucky Derby? I'm looking to lay a bet down.

Thanks
Doc

 

[Biggie]

Hi

Thanks "DomeBase" for starting this thread!

All comments are now coming from the "horses mouths" so to speak!

StocDoctor, raises an excellent point!

investing in traffic revenue vs. "new extension's growth potential" such as ".in" speculation.

therefore, any extension, which produces revenue becomes valuable!

which tld or cc has the highest current rate of return on investment?

it's ".com"

when compared with the general reseller/investor population!

but this is only valid for investors who have ".com" in their portfolios!

those who do not, but have achieved profitable "roi" are in a different class.

they are not ".com" dependent!

the guy/gal who buys 10 selective "non .com" extensions at regg fee.....

ie:

search.in

domain.in

money.us

and sells at the right time or holds while collecting traffic revenue....

his "roi" potential is enormous!

i guess the question is......how long are we willing to wait for the "roi"?

Such a tough question and so funny to see that the members automatically reach for that .com button without a clue.

"Best for investing" What models are we talking about here?

*Purchase (or drop catching) for resale
*Url bar type-in traffic revenue
*Search bar type-in traffic revenue
*Development revenue or resale

Also, shouldn't we be looking at some common denominator when making these comparisons, like an Internal Rate of Return calculation? Shouldn't we also then take into account variables such as risk as mentioned in one of Domey's posts above? Even more, how do we compare "market entry" when a majority of the domainer secondary market may be increasingly locked out of participating in the high end .com price levels, begging the question "best domain investment for who".

For example: At what point does it make more sense to spread the risk of a $1k investment over 1000 .info domains (for resale or search bar type-in revenue) versus 1 .com with url bar type-in revenue? Which choice offers the best chance for appreciation on resale? When does the decreasing costs and time required in development occuring now impact the investment decision?

 

[Provider]

bala bla bla.

This is how people make money - they see something before other people see. If everyone can see such potential in .ca names I won't make that kind of money. So, it is even better for me that most of the people arrogant like you about posibilty of earning that much with canadian domains.

The simple math shows that if you can still register a premium (dictionary name, one word) for CND10$, and sell it without any problem for at least USD$40-50 you will make at least 300%. I usually sell names for much more.

You can continue to think that I am stupid and crazy, that doesn't change a thing. As far as stock goes, I think AMD (Advanced Micro Devices) stock
will do very good this year.

That's what I like, "guaranteed" returns of "300%" on those .ca domains predicted 2 years into the future.

I've spent 25+ years as an Stock and Bond Analyst and still have problems predicting any returns over double digits. Can you take a look in that crystal ball of yours and tell me which stocks or bonds I should be buying this year? Would save me a lot of work.

Whilst you're at it, can you look and tell me who's gonna win next years Kentucky Derby? I'm looking to lay a bet down.

Thanks
Doc

 

[stuff]

bala bla bla.

This is how people make money - they see something before other people see. If everyone can see such potential in .ca names I won't make that kind of money.

Thats not true, if more people would see it, You would also make more money.

The simple math shows that if you can still register a premium (dictionary name, one word) for CND10$, and sell it without any problem for at least USD$40-50 you will make at least 300%. I usually sell names for much more.
.

And thats really low, I still manage to get good .com-s for $60 and sell them in few weeks for $1000+

Stuff

 

[StockDoctor]

So, it is even better for me that most of the people arrogant like you about posibilty of earning that much with canadian domains.

You can continue to think that I am stupid and crazy, that doesn't change a thing.

I don't think calling me arrogant or any other insult is going to get you too far. Calling me ignorant of the .ca market might be more appropriate.

I never said that I thought you were stupid and crazy, but I do think you were overzealous in the support of your .ca extension. Sorry about the ridecule, but after so many years in the investment field, I naturally bristle at anyone claiming guaranteed returns, no matter what the extension or vehicle. Toning down "guaranteed" and "300%" to discussion about your own personal experience would be better received, and much more convincing.