Investors Turn To Domain Names Amidst Property Market Slump

October 29, 2008; 07:32 AM

London, Oct 27 2008 -- With the global real estate markets struggling as a result of the credit crunch and most other traditional investment opportunities in turmoil, investment in “Virtual” real estate will become more prominent, according to online domain name trader Namecake.com (www.namecake.com).

“A growing number of investors and corporate end clients are looking at domain names as an alternative commodity, and with a built in market and forecast substantial long term returns this asset class is set to grow substantially whilst most others experience painful contraction.”

Industry news magazine DNJournal, compiles prices of domain names sold in public marketplaces and a selection of the sales from 2008 are below:

Fund.com - $9,999,995
dataRecovery.com - $1,659,000
Cruises.co.uk - $1,099,798
iReport.com - $750,000
Casino.de - $625,060
Jobs.ca - $600,000

James Stafford of Namecake (www.namecake.com) went on to say, “the dot com bust of 2000 is still fresh in many investors minds and most will remember how the price of most online enterprises tumbled due to hype and bloated earnings expectations.

“But the web of 2008 is a very different place.
Billions now have access to the internet and every day hundreds if not thousands of new businesses set up shop to increase their reach and compete in the global marketplace. But business owners are finding it more difficult to come up with the right domain name – a name that captures a brand and has that easy-to-remember quality that can have a direct impact on sales. As a result, the going rates for premium, brandable domain names are heading in only one direction, and those that get on board now will secure the best chances of realising long-term profits.”

Mr Stafford also went onto say, “there are numerous reasons why domains will be seen as a serious alternative by sophisticated investors.”

Some of the reasons he gave are:

They are virtual – you don’t have to store or pay for upkeep (yearly renewal fee of $7)

They pay interest/income – You can park the name with a company that specialises in monetizing domain names, and split the advertising revenue generated. Or you can create a simple site and place adverts (adsense /affiliate) and keep all the revenue for yourself. This is incredibly easy and you need no web design experience.

You can develop them and turn them into a successful web business. (premium names are a business in a box.)
Local and regional economic fluctuations will have a diluted impact on your business as your site/asset is viewed by the whole world.

A site works for you 24 hours a day It never rests, sleeps, gets sick or moans you’re paying it too little – it just keeps working.

Asset security - Property and possessions can be taken from you as they are usually fixed in one location. A domain name is accessible in any country – it doesn’t matter where you are on the planet you can access your investment.

Investment Privacy - You can also hide the contact details, so people prying into your personal business will never know you own it.

“Those with the foresight to invest early on are now making serious money, as businesses and investors alike strive to secure the best domain names available. We predict that the number of domain name investors entering the market will increase over the coming years as traditional investment opportunities are squeezed, which will only serve to drive prices up further for domain name investors.”

In addition to offering premium domain names for sale, Namecake.com also provides a database of information and resources on getting involved in domain name investing and the tips and techniques necessary to become successful within this industry.

Some of the names they have on offer at (www.namecake.com) are: VR.Net, 9i.com, 3J.com, CXC.com, FEJ.com, Sixth.com, ShareSelection.com, BestDigitalCameras.com, PsychologyOnline.com, L-A.com, Solar-Energy.com, Foob.com, Joof.com, Wodo.com, Branding.Biz and many others.

About:
Namecake.com (www.namecake.com) is an online domain name trader, buying and selling premium domain names for investment purposes. In addition, it offers advice to businesses looking to compete successfully in the global marketplace.

Source: www.pr-canada.net