Thursday, April 2, 2009

Definition of Domaining

Domaining is basically the business of buying domain names as an investment. When thinking about this business, a good approach is to think of domain names as real estate. Think of them as pieces of virtual internet-land that have some intrinsic value, where the majority of that value stems from their location and from their degree of development. Their "location" is akin to their visibility on the web. Short recognizable names have the best location, and so they are also the most expensive. The buildings on a piece of land are akin to a website developed at a domain name. The website is likely to attract visitors either through it̢۪s content or functionality, and therefore increase the value of the domain name.

Like any mature property business, most of the valuable names have already been snatched up and are only available at a premium. Speculative names are still available, as are names with unproven extensions (.info, .biz, .us, etc.) A big difference in the domain world though is that new names with potential are available all the time, as new phrases and trends become popular, as old domain names expire, and as new technologies emerge.

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