November 05, 13
Many smart, financially-savvy people are not informed about domain names as assets. So, if your banker or financial advisor still does not get domains, here are the main points, in language that finance-types understand.
Simply described, Domain names are the raw land of the Internet. And while the offline economy is shrinking, the Internet economy is not. And in these uncertain times, there is even more compelling economic case for why one would want to own domain names:
- Domains can be priced and traded in any currency.
- Domains can be operated from anywhere.
- Domains can be owned by anyone, and even via anonymous proxy.
- Domains have essentially no counter-party risk.
- Domains produce recurring, passive income, particularly when developed.
- There is a rapidly maturing secondary market for domain names.
- Unlike Physical Precious Metals (PMs), domains are weightless.
- And unlike PMs, if a domain name “disappears”, you can find it!
A balanced investment portfolio could easily justify having 10% of holdings in income-producing domain names. A portfolio of names including Tshirts.com sold for $1.25 million in New York on Wednesday. Slots.com sold for $5.5 million earlier this year. Yet, every day, about 80,000 domains are abandoned by their prior owners.
Opportunities abound for speculative gain and capital preservation. Educate yourself: http://www.youtube.com/watch?v=Z2HwPgmcvEMTweet