DotCom Investment in a Nutshell
Consider Domain name as a piece of Real estate.
Now think of a premium piece of real estate in your city which is getting expensive by the day due to more demand and limited availability.
That for you is DotCom, the most premium piece of Internet Real Estate.
The resale value of DotCom keeps increasing several folds with each passing year and the Investors keep their premium domains listed to Domain auction sites. The day an Investor finds the buyer who has come knocking on their door (metamorphically) to buy the domain, the Investor sells the Domain for a handsome profit.
THE MATH BEHIND INVESTMENT RESULTS (Explained in Simple words)
Mr.X holds 100 domains. He pays a renewal fee of 9dollars to renew each domain, which sums up to 900dollars a year.
A Novice Investor sells 5% of his domains in a year and the average price is around 1650 dollars/domain. For Novice Investors, the average cost of buying a worthy dotcom for the first-time averages at around 380$.
So over the average no. of 5 domain sale/year, Mr.X makes the following money...
Total Amount : 1650 x 5 = 8250
Cost of 3 Domains : 380 x 5 = 1900
Renewal fee of 100 domains 100 x 9 = 900
equals to(=) 5450
These figures are bare minimum considering that Mr.X has sold only 3 domains like an average Investor. However as the experience starts building for an Investor, his choice of buying names is more updated and less intuitive.
Several Pro Investors sell around 23% of their portfolio each year and have an average income of around 40,000 dollars by just putting an hour or two a month.
An occasional JACKPOT hits in the life of a Persistent Investor where they sell a domain for over 50k and that catapults them into the big League or they choose to invest their money in some other Asset Class.
Owning the right DotCom for a brand is like owning a store at a prime spot in the most popular mall of the World, where footfall is guaranteed no matter what. For reasons like such, brands go that extra mile to pay out of their nose to acquire a Dotcom which they feel is the best fit for their brand and hence exists the Business of Domain investment where DotCom is the KING of all.
Do feel free to connect with us if you have any queries or want us to help you build your domain portfolio.