Domain investing is one investment trend that has gained popularity despite COVID-19 impacting business around the world. Indeed, if one approaches the phenomenon with sound strategy and vision then there is no reason why domain investing would not succeed. Read on to find out four important reasons that give impetus to this new trend.
As in any other business, in real estate too the profit lies in buying low and selling high. However, rising expenses considerably rob return over investment. Domain investing can prove to be a low cost, low maintenance investment if done with sound planning and strategy. It needs to be understood that investment in numerous domains can diversify a buyer’s portfolio and enhance his potential profit. The popularity of the domain sets its price point which can be considerably low. This makes domain investment more accessible than conventional investing in real estate. If one purchases carefully then there is every likelihood that he would buy domain that would appreciate over time.
Timing is Crucial
The possibility of acquiring a high-quality domain is what makes domain investing popular. Normally the chances of greater return brighten when investment is made in superior domains. However, to achieve this one would have to rely on carefully devised strategy and foresight. For quite a few domain investors it is advisable to use a wholesale platform where liquidating domains for a fraction of retail prices and recouping their investments can be done easily. It would also be a good idea to wait for names to expire (or dropped) if the existing owner does not opt for their renewal. Such domains can be acquired at better value from expired domain auctions.
Digital Economy The Way Forward
Global pandemic and the subsequent lockdowns have ushered in a work from home culture. However, the workplace is not alone in making a digital switch. Virtual baby showers or other family functions as well as streaming living room DJ sets have also made their presence felt. In fact, as the infrastructure and palette for digital grows it will continue to bolster the digital economy even in a post-Covid era which augurs well for newer innovations like domain selling.
A Creative Activity
Yes, you have read it right. Monotony creeping from pandemic and lockdowns led to the coming up of numerous new hobbies. Netflix and TikTok also lured masses no end. In the case of micro-trends, it is the growth of creative investment opportunities. It would be worth reiterating here that real estate investments leave you little scope for being creative. It is no surprise then that many take up domain investing to showcase their creativity.
However, domain investment requires a flair for names that emboldens a brand. Those short in creativity would find going tough in investing in viable names.