(This is a posting that I initally wrote on Namepros, but wanted to share it here as well)
Much has been hyped about many new trends in domain investing. In this thread Im going to explore the trends that I think are real, and the ones that are superficial or illusions. I invite discussion and debate on this topic.
Trends: The Rise of the LLLL.com
The LLLL.com is an interesting monster in itself. Representing hundreds of thousands of domain names. It has become the domainers currency as of late and the truth is that it will continue to gain ground on its older cousin, the LLL.com.
What LLLL.com’s are worth investing in? Primarily ones which form an easily pronounceable base or have premium lettering and good patterns. These names are solid for acronyms and new brand names. These type of domain names are easy to recall and quick to type – making branding much eaiser, and requiring less work.
Which LLLL.com’s will turn out to be busts? LLLL.com’s with random poor lettering. Domains containing x, z, q – ect. These names although should gain some ground – not enough to make the hold worth it. There are substancially better investments then this class of domain.
Illusions: The hot streak of .mobi
Earlier in 2007, Apple released the iPhone. A cell phone with a built in browser that allows for reasonable download speeds, and easy browsing. This phone also has built in wifi to connect anywhere there is a hot spot. Making mobile websites no longer limited to small bits of data.
.mobi came too late. In 2008 expect to see more hot spots, and more cell phones on the market that emulate that browsing technology and wifi connections.
In addition, without solid development and marketing of this extension, consumers will continue to never hear of it. Most of those large domain purchases at Sedo were from domain investors not developers or those “end users”.
Trends: More Live Auctions
Expect 2008 to be a great year for new domain companies and new live auctions. More and more domain investors are becoming disenfranchised with their current options and their is room for vast improvement.
Many of the companies who were only doing online auctions in 2007 – will be opening the doors to live auctions in 2008 because there is plenty of room for growth.
Trends: Expect more international investments
As domain investing continues to become more and more acceptable, watch as international groups (outside the US) take advantage of a weak dollar and invest in generic domain names.
The dollar continues to under perform, and its a perfect time for European investors to take advantage and start buying from US portfolio holders. Some excellent value can be purchased at a steep discount.
Illusions: The End of Parking
Domain parking is far from dead. With click fraud running rampant, and advertisers demanding better results – domaining is changing. The current model of advertisers buying visitors will continue through 2008 although expect revenue to decrease.
Domain Parking firms are learning that type in traffic is nice – but so is SE traffic. They will be working hard in 2008 to release better SEO pages and more unique content. Expect imrpoved parking this next year.
Agree? Disagree? Always want to hear your thoughts. Please share your expectations for 2008….