What gives value to a domain name?

If you observe the marketing emails of domaineering related service providers, you get an idea of the rates at which domain names are being bought and sold. It is a good indication of the value of domain names.

However, for an investor with limited resources, any purchase of domain name is a speculative investment which may turn out to be a dud investment if it cannot command premium in the market.

The world is big and there are varied interests. Hence there can be business potential in a variety of businesses and hence any good domain name which can be used for a prosperous business on the internet can command a premium. However investors must remember that the ultimate value for a domain name is determined only by a genuine user of the domain name and not the intermediary buyers who speculate.

Hence the “Intrinsic” worth of a domain name is what an investor needs to look at when he wants to invest in domain names unless he can speculate without minding losses.

Naavi

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The Essence of Domaineering

Domaineering is a concept where a person would try to register/buy and sell domain names for a profit.

Domain Names can be acquired by direct registration which is like buying a share in the first IPO. The prices are fixed though it may vary from TLD to TLD. They can also be bought from earlier buyers at a negotiated price like buying a share in the stock market. Domineering is an art to acquire potentially valuable domain names at a good price and sell it at a higher value.

Domain names are registered on first cum first served basis if available. Hence it is not always easy to register a good and marketable domain name since most common good looking names are already registered. Only when new TLDs are opened up, good opportunities arise for acquiring good domain names.

But if such domain names are having a potential for value appreciation, they can be bought in the secondary market. This however requires a keen sense of domain name valuation which needs to be acquired over a time and after research.

Investors in domain names must also remember that if any domain name is in conflict with a well known mark or a registered trade mark, there could be a notice from a claimant which may have to be given up in certain cases. It is therefore necessary for investors to avoid such names as may result in disputes and where the rights of an alternate prior holder of a trademark or domain name appear strong.

Hence, before buying any domain name, the investor should not only conduct a valuation research but also an evaluation of the conflict potential. This requires a good knowledge of the domain name disputes.

Let us explore this area further in other articles.

Naavi

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Welcome to this new website on domaineering for Indian audience

Welcome to this new website created by naavi, the well known cyber law educationist in India and founder of www.naavi.org, www.cyberlawcollege.com and other associate sites.

The object  of this site is to educate the Indian audience who may be interested in entering the field of domaineering to find a Cyber Law Compliant way to investing in domain names.

Watch out for more information in due course.

Naavi

18/8/2015

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