Domain Investing

Published by admin on August 4th, 2007 | Tagged Business, Domain Names, Internet and Web 2, Make Money Online

I came accross an awesome news article courtesy Sedo.It was about domain investing and the similarities between investing in domain names and investing in the stock market.

Investment in stocks  gives us dividends from time to time and Domain names give the owner revenue from domain parking from the natural traffic it attracts.

Also,Stocks,apart from dividends provide and opportunity for capital gain,thus, they have the potential for capital growth.In the same manner the domains apart from the parking revenue, give ,an opportunity for capital growth as they can be sold for a profit.

The following determine the valuation of domain names:

1. Future (Resale) Value of the domain,this depends on factors such as: number of characters,advertising and branding potential etc.
2. Current Traffic the domain attracts

Similarly,The following determine the valuation of stocks:

1. Future growth
2. Current Profits /Earning per Share

Here are the graphs that give comparison of classification of stocks to domains:

Stock Characteristics are shown in first graph and Domain Characteristics are shown in the second graph,source:Sedo

Read the Sedo Article here.

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