To properly explore whether or not domain names are a good investment asset for you, you first have to explore domain names. There are several classes of domain names, each with varying use cases and return on investment potential. Let’s start off by exploring these classes.
- Popular generic top-level domains (TLDs)
- Country code domains (ccTLDs)
- New global top-level domains (ngTLDs)
The first category includes names that may be familiar to you, like .com, .net, and .org. These names launched in the late 1900s, with the former and latter being introduced first, in 1985. It’s commonly referred to as the legacy extension as it almost is synonymous with the beginning of the internet (before it was just a long string of non-user-friendly numbers commonly known as IP addresses).
Country codes were introduced later in the early 2000s. Unbeknownst to some, the rising .co extension isn’t a shorter .com or generic at all. It is an extension of the country of Columbia. Others that may come to mind are .io, .ai, and .so. These are just a handful of several. Last we have new global domains. These names were introduced most recently with the oldest extension being introduced in 2012. These names end in various strong keywords, like .global, .market, .live, and more.
Now that we know the basics, we can explore what you’ve been waiting for. Let’s talk about money.
A quick look at sales data will show you that .com domain names have sold for some impressive prices, with voice.com selling for the chart-topping price of $30,000,000 USD. This extension also has the highest number of sales, with an average sale price of, $2,238. Considering it costs roughly $10 to register, that’s quite impressive.
The other extensions included in the popular category come in at an average sale price of $1,622 and $1,198, for .net and .org extension respectively. When we consider all TLDs there’s an average price of, $2,214, so only the .com is exceeding this value, making it the best investment option of the three. Now let’s explore ccTLDs and ngTLDs, which come in at $2,749 and $3,694. Comparing these to the overall average, they exceed the median by 19.5% and 40%, for ccTLDs, and ngTLDs respectively. That’s even more impressive in comparison to .com, which exceeds the median value by just 1.1%!
In short, we can summarize that domain names are a good alternative investment class for some with some extensions being more opportune than others. Either way, we highly suggest doing intensive research before visiting domain auctions and only recommend that you invest in assets you’re passionate about. Let us know if you have that hunch for branding and will be looking into exploring domain names as assets!