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

facebooktwittergoogle_plusredditpinterestlinkedinmail
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *