Never has there been a commodity quite like domain names, and frankly there is nothing out there that will ever compare. The internet grows exponentially by the day as an infinite amount of new users from around the world begin to discover it’s potential. Alongside those new users are the internets veterans who continue to ponder, and explore the limitless opportunities the world wide web presents.
The web is barely a quarter of a century old. It is still in its infancy, and we have yet to see it’s real potential. Many make claims that the internet will not last, that it will be gone one day… “you’ll see”… Let’s be honest, aside from a worldwide (pun intended) catastrophe that causes a global meltdown and sends us back to the stone age, the web is not going anywhere.
As an investor and an entrepreneur, it is the most exciting time in the history of the domain industry. You could argue that the 90’s were the most exciting times, but in that period, only a handful of very savvy investors and forward thinkers truly saw the big picture. Nowadays the big picture is clearly laid out for everyone. Domain names are not going anywhere, and if you are wise enough to accumulate a portfolio with the future in mind, you too will see some incredible results.
At the moment, short liquid domains are the hot commodity, and for good reason. As the internet grows, these short domain names will become rarer, and their value will continue to skyrocket. There is absolutely no reason it wouldn’t. History has proven this time and time again.
In 2006, two letter .com’s were selling in the wholesale market for around $50,000-$150,000, and they are now easily surpassing the $1,000,000 price point. Think forward to ten years from now. If you pay $500-$2,000 to acquire a short, four letter .com today, ten years from now your total acquisition cost will have only increased by $10 per year. But their value will likely multiply by 10-20x, and perhaps even more, as they become a rarity.
Remember, the internet is growing every day, and because of that domain names become more and more rare, and valuable. A $500 investment you make today could turn into a $25,000 payday within the wholesale market itself ten years from now. Let alone the potential end-user that comes along the way and makes you a strong offer. Does that mean a $50,000 three letter .com will be worth $500,000 ten years from now? Probably, and likely even more than that. Talk about a retirement plan.
With the impressive rate of advancement we’ve seen in the still young tech era, we can only assume that there will be some mind-boggling technology emerging over the next 10+ years.
We WILL see artificial intelligence in full fruition.
We WILL experience the world in a virtual and augmented reality.
We WILL be delivered our goods by self-piloted vehicles.
We WILL live in smart homes.
The possibilities are endless. Better yet, as technology grows, more and more companies will come out of the wood-works and require a web address to locate their business on. Making those domain investors who chose to invest wisely today, very wealthy in the future.
What to Do?
If you do not have a long-term portfolio plan in mind, you are wasting your time. Everyone, including myself, loves the thrill of quick flipping and fast money. In fact, most of the money in this industry seems to trade hands quick flipping to other investors. However, you need to start putting away some gems, and essentially forgetting about them. Let them accumulate long-term value. Sit tight, and hold fast. Especially anything under four letters, those should be swept up, and put under lock and key.
If those short, four or less letter domain names can represent a future-thinking industry, even better. If you have to, go back and watch all of the future based movies. You can get a real idea of what we can expect to see 10-20 years from now. Sounds a little cheesy, but I guarantee you will have at least one lightbulb moment. Keep up with all the latest tech news to determine what is evolving and what may have a future.
While most of us came into this industry “late”, that does not mean we can’t begin investing for the future. Lock down the best domain names you can afford for long term appreciation. Be sure you stick to .com for these long term holds, no matter what anyone says, even if .Hamburger becomes the new .com, that doesn’t take any value away from the .com as it’s classic, and will always be where the world wide web truly grew its roots. Think of it this way; Chevrolet can come out with as many “new” versions of the Camaro as they want to, but there is NOTHING they can do that will ever replace the glory that is a 69′ ZL-1. And there is NOTHING that can take the place of a .com. Period.
Do your quick flipping, make your fast money. No problem. But make sure you start investing in the future too. If you don’t, I guarantee you will regret it. For every ten(or however many you choose) domains you flip, invest the profits into one amazing, short .com. Put those names in a lockbox, and be very patient as you will surely “hit the jackpot” in the long run.