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Why .com domains sucks as an investment

Discussion in 'General Domain Discussion' started by DavidL, Aug 4, 2011.

  1. DavidL

    DavidL Membership: VIP

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    auDA Member:
    Yes
    1) .com domains command the highest prices so therefore are where the money is.

    Whilst this is true, and will no doubt continue to be so, from an investment point of view this isn’t relevant. Successful investors look for growth opportunities, not solely for high values – no one would claim that investing in platinum over the last few years just has to be better than investing in oil because pound for pound it’s so much more expensive – the same is true of segments of the domain market

    2) All the really successful domainers seem to have made their millions in .com domains so that’s what I want to do

    Again true, the guys in the industry who have really made it big, tend to have done so through .com investment. But the key thing is most of them started over 10 years ago. .com domain values did appreciate hugely between 2000 and 2007 and many people made a lot of money. However that ship has sailed. .com values have plateaued or even fallen since then whilst other name spaces have taken over the growth reigns.

    3) .com domains have a 6 billion person audience whilst ccTLDs are limited

    The size of a market does not necessarily impact values or growth. Whilst a bigger market will normally mean more liquidity, values in domains are driven by supply and demand. If that balance of supply and demand doesn’t change, nor can you expect domain value too. This is the same argument for saying one should invest in rice simply because it has a larger market than gold for example.

    4) Most domainers invest in .com – surely this says something about the namespace

    Unfortunately just because everybody else is doing it, doesn’t mean it’s the best idea. On the contrary, your competition is that much harder as to make a profit trading you basically have to beat the experts at their own game if you want to sell back into the domainer market. Unfortunately the ‘com is king’ sheep mentality is kept alive by the many people who are heavily invested in the area and need to talk it up at all costs.

    5) .com domains rank the best in search engine results pages

    Actually the opposite is true… in most countries a Google search will be dominated by results using domains in their respective ccTLD – .com domains often don’t get a look in. Google’s goal is to return relevant results so it makes sense for them to return a .fr result for searchers in France, a co.uk result for the UK etc etc. The exception (and also why this myth is perpetuated) is in the U.S where for various reasons the local ccTLD (.us) has not taken off – therefore .com is considered the default ccTLD and does indeed dominate results.
     
  2. DnEbook

    DnEbook Membership: VIP

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    is this a cut and paste from the namepros post ?

    some of the changes verisign are believed to applied for

    .公司 : .com
    .网络 : .net
    .公司.中国 : .com.cn
    .网络.中国 : .net.cn

    Korean:
    .한국 : .kr
    .회사 : .com
    .넷 : .net

    Japanese:
    .日本 : .jp
    .コム : .com
    .ネット : .net

    Russian:
    .ком : .com
    .нет : .net

    Thai
    .คอม : .com
    .เน็ต : .net

    Hebrew:
    קום : .com
    נט : .net

    Arabic:
    كوم : .com
    نت : .net

    Greek:
    com : .κομ
    net : .νετ

    Hindi and Marathi and Nepali (Indian languages)
    .com : .कॉम
    .net : .नेट

    Urdu (India, Pakistan, Afghanistam, Iran)
    .com : کوم.

    Telugu (India)
    .com : .కం
    .net : .నెట్

    Tamil (India)
    .com : .காம்
    .net : .நெட்

    Kannada (India)
    .com : .ಕಂ
    .com : .ಕೊಂ

    Gujarati (India)
    .com : .કોમ
    .net : .નેટ

    Malayalam (India)
    .com : .കോം
    .net : . നെറ്റ്

    Bengali (India)
    .com : .কম
    .net : .নেট

    Latin languages
    .com : .com
    .com : .kom (latin letters)

    Seems they think .com and .net are still going to be around for a while yet
     
    Last edited: Aug 4, 2011