a thought why domain investing is more a digital real estate business than a traditional technology industry

[Helmuts]

a random thought...

the domain investing business revolves around one thing: domains, domains, and domains. It’s similar to real estate, where the 3 most important factors are 1) location, 2) location, and 3) location.

one of the key differences between digital businesses and real estate is how value grows over time. Real estate (on average) appreciates at the rate of inflation, becoming more expensive every year. This steady increase is a core feature of physical and retail-focused businesses.

in contrast, digital businesses rely on technology, which tends to get cheaper over time (e.g., hard drives, ram, cpus ao).

thought = if domain names (on average) follow the inflation trend and increase in value over time, this positions the domain industry closer to digital real estate than to traditional technology businesses.

.. and, no business seems to be able to break free from the increasing electricity costs

.. a random Monday thought..

agree? disagree?

good day all!

 

[ukbackorder]

Disagree. Imagine a real estate market where every single building was different. There would be no way to establish (beyond the cost of building) a sales price for each one. Yes some would be worth more in better areas than others but the property themselves would be impossible to value because it would depend solely on what individual people wanted, were willing to pay for, and what the owner would sell for.
Domains are all unique. There are better extensions than others, there are some general baseline guides, but it is impossible to value a domain correctly (although people will still take your money to convince you). There is also no evidence at all from past sales figures that domains are related to inflation.
Also buildings have a practical use. A domain is only worth what someone is willing to pay, and what someone is willing to sell it for. Nobody *needs* it. This is going to be borne out far more in the future I think as domains generally become second fiddle to other methods of navigation and not only the tld, but the sld as well, become less important. I will take property over domains every time.

 

[Joetower]

Sorry for a silly question but how can we master this skill??

 

[Helmuts]

Sorry for a silly question but how can we master this skill??

Hi,

1) theory (Domain Academy by @godaddy is a perfect way to start)
2) practice the learnt theory
3) find like-minded and profit-oriented friends on forums or social media groups
4) follow the Domain Sherpa videos.. get in the mindset

I have done a lot of live streams on this subject:
DNForum's past streams: https://www.youtube.com/@dnforum/streams
.. also a number of domain investing interviews at HostMaria (my hosting company): https://www.youtube.com/@HostMaria/streams

Enjoy!!

 

[NiceNICDomainServer]

a random thought...

the domain investing business revolves around one thing: domains, domains, and domains. It’s similar to real estate, where the 3 most important factors are 1) location, 2) location, and 3) location.

one of the key differences between digital businesses and real estate is how value grows over time. Real estate (on average) appreciates at the rate of inflation, becoming more expensive every year. This steady increase is a core feature of physical and retail-focused businesses.

in contrast, digital businesses rely on technology, which tends to get cheaper over time (e.g., hard drives, ram, cpus ao).

thought = if domain names (on average) follow the inflation trend and increase in value over time, this positions the domain industry closer to digital real estate than to traditional technology businesses.

.. and, no business seems to be able to break free from the increasing electricity costs

.. a random Monday thought..

agree? disagree?

good day all!

Hello, Helmus. It feels like you're making a lot of sense. Real estate investments will mostly go up in price with inflation, and domain names are dependent on digital technology, which gets cheaper. But domain names are more historical, special, and old domain names have irreplaceable excellence.

 

[Helmuts]

Hello, Helmus. It feels like you're making a lot of sense. Real estate investments will mostly go up in price with inflation, and domain names are dependent on digital technology, which gets cheaper. But domain names are more historical, special, and old domain names have irreplaceable excellence.

Very good point!!