Domain name investing is a pretty young investing branch being it hardly teenage. In this state, the market is expected to be very volatile and speculative. However if played right and invested properly this market can have a great return of an investment and nice profit chunk. The market is immature and there are many problems and issues but there are already some ground rules set up and if one does not stray much from the path the investment can be as secure as any other mature market investment.
Ending the 20th century domain names were quite expensive in contrast to the prices nowadays. Big players have hold the large chunk of domain names portfolio and the interest in the online business has only just sparked. First rise and fall in the online industry with the year 2000 dot com bubble burst has been the first test of market sustainability, many analysts have prognosis that market will not survive and that few niche business ventures would stay and that nobody in their right mind would invest in domain names or websites in the near future because of the long term insecurity. The doom prognosis has proven to be wrong and due to technology advances and having more than 60% of world population online, the market for domain names continued to grow after the great fall of dot com bubble burst.
Dot com bubble burst
The dot com bubble burst happened due to small and big time investors pouring money in unsustainable online business ventures without the real exit strategy or even liquid strategy. It was all in the buzz and suddenly everyone and their grandmother have had a website selling something or showing off. Saturation of the market has brought interested buyers to a minimum price range either for products or online advertising. In this scenario the big numbers game gained the market over night leaving only big names who could survive with cents over a dollar profit margins afloat. Many small businesses and family businesses having a bite in the online market cake have been bankrupted and left in the dark without means to rise back up. This whole situation has made the future decade very cautious for investors and especially for small businesses and family business alike.
What many saw as a failing business model others saw as a great opportunity. In the following decade since the dot com bubble burst the online businesses left afloat and new investors and idea inception makers have earned the big bucks due to the same state of investment fear left by the market downfall. Nowadays it is prudent to have an online presence if you are running a business, the profit margins on your online sales are bigger, the customer support is easier to accomplish and the maintenance costs of an online shop is hundred if not thousand times lower than the real world venture. To start an online venture the first thing you are going to need is a domain name. This is where domain investors are kicking in having already large portfolios of domain names and profiting from their maturity or phrase visibility. You can still make a good deal buying a domain name because the name itself is nothing if not backed up with good website, the domain name is just the first step. There is no need to invest thousands or millions in domain name itself when you can build a brand on a hundred dollar worth of domain name just as well.