2014-06-11

The Bull Market in dot COM Domain Names

Recently I received a newsletter from a domain name broker at Domain Holdings which raised the question "Are we in a bubble?" after noting (among many other things) that "Assets that used to be practically worthless, like NNNNN.com, suddenly started to have face value."

I had already begun to write a post about this, but I replied via email to Giuseppe, and what follows is an edited version of my email:

The Bull Market in Dot Com Domain Names Has Just Begun: Dot Com domain names are, in effect, like a global currency but unlike, for example, bitcoins, Dot Com domain names are completely legal, regulated, easy to buy and sell worldwide in multiple currencies, and form the foundation of the global marketplace -- the internet. For example, Chinese who have wealth but find it difficult to move their wealth outside of China (for safety, security, to diversify investments, minimize currency risks, etc.), are easily able to purchase Dot Com domain names -- the gold standard of domain names. They can even put their ownership under Whois Privacy. This is an IDEAL way for anyone in the world to hold and protect assets! ALL of the world's Central Banks are destroying the value of all of the world's currencies (but they cannot touch Dot Com domain names!). US stock markets are inflated, interest rates are artificially deflated, select real estate markets are already in a bubble again, commodity prices are falling because of the state of the global economy (particularly the construction market in China), and collectible art prices are exploding -- "where to invest" is a real problem for anyone with wealth.

ICANN has destroyed the value of the new gTLDs by flooding them into the domain name ecosystem -- no one will remember hundreds of domain extensions -- but they already know and use .com (and if they are outside the US, also their country code). If you are building a website and your market is global, or you are in the US, you better build on a Dot Com domain name OR you will be solely relying on a search engine, advertising, etc., to get any traffic to your site and, even then, you will still be bleeding traffic to the Dot Com domain name! Example: the US government's healthcare.gov with massive amounts of publicity and money spent in advertising and promotion, still bleeds unbelievable amounts of traffic to privately owned healthcare.com. [And you think you can do better than the US government with your cheapo new gTLD instead of a Dot Com domain name? LOL!] The Chinese, among others, "get this" and they want the "global market's gold standard" -- .com domain names -- this is why Xiaomi (the up-and-coming Chinese smartphone/tablet manufacturer) just bought and now uses (not redirects) mi.com for their global branding and internet website.

Bottom Line: the Dot Com domain names "bull market" has just begun, with lots and lots of room yet to grow and run -- I expect Dot Com domain name prices to increase exponentially from here in the aftermarkets. Why do you think Warren Buffett's office contacted Mike Berkens for a possible consultation about domain names? [This was disclosed by Mike on a domainsherpa.com show.] As more and more people (and corporations) with wealth (cash) understand this, Dot Com domain name prices will only increase. Google is getting ready to launch 180 satellites that will provide global internet service and add 3 billion consumers to the internet's "global market." What do you think this will do to Dot Com domain name prices?*

John Poole
Domain Mondo
June 11, 2014

*Disclaimer notice: As always, note the disclaimer below (bottom of web version page) or at the foregoing link.

Update: title of post revised May 25, 2015, to The Bull Market in dot COM Domain Names





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