Domain Market Outlook – 2015 and Beyond

Back in the late 1990s and early 2000s, it was the first opportunity for domain investors to pick up some great generic .COMs at hand registration prices. These were single and double dictionary domains. Today, there are no good generic .COMs left, at least not for cheap prices. Now, I think we’re in the middle of the second real opportunity to pick up some good domains during this growth spurt. I’m referring to short .COMs like NNNN and LLLL. Actually, we’re too late for NNNN numerics, but decent NNNNN numerics are still selling for 3 digit prices or more. In forum discussions, there are speculations about NNNNNN numerics going up in value soon. We’re currently experiencing rapid price increases, especially for short .COMs. I think we may even see some of the other domain extensions follow suit, as demand increases for desirable short and generic domains.

So what is causing this sudden growth in the domain market?

Well, I think it’s a number of factors contributing to the growth.

First of all, we have an increasing number of Internet users worldwide. The three top countries are: China #1, India #2, and United States #3. What does this mean? Well, if you have more Internet users, there will be more websites being developed by businesses and entrepreneurs. This in turn means that more domains will be needed to fulfill that demand. Of course, not all domains will be developed. Many will be swallowed up by domain investors who are following the market.

For many of us in the US, we’ve been somewhat blindsided by the Chinese domain market. It seems they’ve quietly been growing. If you look now, a lot of the Chinese own a good portion of short premiums, from short numerics and letters, to generic keywords.

We’re just taking notice now because of all the big sales coming out of China, as well as the increased visibility of Chinese domain investors scooping up a lot of good domains in various marketplaces.

Common sense tells us, the domain market will only grow as China/India continues to grow in terms of Internet users. Think about it – more Internet users means more websites being developed. There are over 1.4 billion Chinese people.

Growth of Chinese Internet users in the past 10 years:

2015  (ytd)  691,xxx,xxx
2014    641,601,070
2013    617,580,000
2012    564,000,000
2011    524,112,635
2010    466,418,762
2010    466,418,762
2009    390,510,543
2008    303,457,569
2007    213,494,961
2006    139,552,413

Source: Internet Live Stats

India is only 2nd to China with over 311,xxx,xxx Internet users and growing fast.

I think it’s undeniable that the value of all .COMs will go up considerably from now on. I think even some of the other domain extensions (.ORG, .NET, .CLUB, etc.) may go up slightly in value. Now is the second wave for the domain industry. Will you ride it? Do you have the foresight to invest now?

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