4 Reasons Domain Names are a Valid Investment in 2019
Domain names have always been a wise investment, but the investment game has changed since the 1990s. The game used to consist of buying up hundreds of domain names in hopes of eventually reselling them for thousands of dollars to large corporations. Back then, anyone could do it. Two letter .com domains sold for millions of dollars. With the exception of seasoned professionals, those days are over.
Although the average person can no longer accumulate a large number of premium domain names cheap enough to make an easy profit, domain names are still a worthy investment in 2019.
1. The internet can’t function without domain names
People don’t use IP addresses to access websites – they use domain names. As long as websites are accessed via domain names, there will be a good reason to invest in domains. However, in 2019, you’ll get the biggest benefit by investing in domain names you intend to use rather than sell.
For instance, it can take years to sell a single domain name, if it sells at all. You’ll need to repeat the sales process for every domain name. When you invest in a domain to build a revenue-generating website, the majority of your effort will be up front and your ROI will be long-term.
2. Premium domain names increase the value of web assets
The right domain name can significantly increase the value of a website. For example, the domain name Cars.com is part of what makes the website so valuable.
Entrepreneurs on a mission to generate long-term revenue from a website won’t settle for whatever domains are available from a registrar. They’ll go straight to a broker to find short, memorable domains with commercial appeal.
No matter how many new extensions are rolled out (there are more than 1,500 TLDs as of August 2019), having a short, memorable .com domain name will always be preferable. There’s nothing technically wrong with other extensions – all TLDs function the same way – but .com is the standard.
When you have a great idea for a revenue-generating website, buying a premium .com domain name will increase the value of the web asset you create.
3. Buying multiple domain names can preserve your brand
If someone wants to harm your brand, they might buy similar domain names to perpetrate fraud. Once the damage is done, it’s impossible to completely reverse. Investing in all of the domain names related to your brand, products, and services will help to preserve your brand. It’s an investment that ensures you won’t need to do extensive damage control in the future related to domain name squatters or people with dubious intentions.
4. Buying domain names can prevent trademark lawsuits
Having a trademark won’t automatically prevent others from registering domain names containing your trademark. Investing in the domain names related to or containing your trademark will prevent you from having to file a lawsuit against someone else later on.
Say a competitor registers a domain name containing your trademark. Even if they don’t know you exist, you’d still need to file a lawsuit to force them to give up the domain name. Intellectual property lawsuits are expensive. Buy your trademarked domain names in the .com, .net, and .org extensions as soon as possible to avoid future expenses and frustration.
Keep your domain investments personal
The best domain name investments are the ones you’ll use and turn into revenue-generating assets. Although you may see people using 1990s strategies to successfully buy and sell hundreds of domain names each day, they’ve been in the game since day one. Buying and selling domains isn’t a market you can just drop into.
If you’re not an experienced domain investor, limit your investment portfolio to domain names you plan to develop for long-term revenue and purchases that will protect your brand from harm.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.