Lex Column - FT

[getmeingetmein is verified member.]

Seems that domains have finally made it to the lex column in todays' FT. Has a general discusson on the growth of the secondary market and then asks the question (which I have already asked myself) - are domains 'an alternative asset class'. Lex suggests they are not as he believes as search engines become more sophisticated domain names become irrelevant ... I happen to disagree.

Thoughts?

 

[acceleratoraccelerator is verified member.]

Right from the word go I have viewed domains as an alternative asset class. What's more, I think there are massive benefits to domains over shares. Such as:

- Hard to lose money with domains. A uk domain only costs £6 to reg (approx £3 per year), that's less than what it would cost you to buy some shares. A domain can't "crash" like shares can, there's limited downside.

- ROI can be absolutely massive. What other asset can you buy for £6 and then perhaps sell for £20K+.

- Domains can provide recurring revenue much greater than dividends if you know how to develop them properly.

- Businesses need a domain for people to find them, so I don't see domains going out of fashion any time soon.

- Good generic domains tend to hold or increase their value. Once a good domain, then always a good domain. However, with shares, even good companies can have "mishaps".

It has always surprised me a bit how mainstream finance seems to have overlooked domains a bit.

Rgds