Domain Investing: How To and Why

Introduction
A single word can be worth millions of dollars on the Internet, and I mean just simple and everyday words. For example, the words sex, diamond, and brown have collectively sold for almost $20 million. Twenty million dollars just for knowing basic English and being tech-savvy enough to purchase a domain. It sounds almost too good to be true, but it isn't.

Traditionally, real estate investments were the ticket to big money. Investors, on pure speculation, could buy a piece of property, wait for the appreciation, and then turn around and sell it at huge profit margins. The problem with investing in real property is that it is very expensive, and the market fluctuates. Today, the housing market is falling again. In fact, according to the Associated Press, the housing market is at its "lowest" since 2004, and there is "further evidence of a sharp slowdown in the once-booming housing market, sales of existing homes fell for a sixth straight month in September and the median sales price dropped by a record amount" (MSNBC, 2006). So, investments in property cannot be trusted right now. The solution for this? Invest in domain names instead. Domain names are the new virtual real estate.

If you're into real estate for profit, the real estate of today, can be found on the World Wide Web. According to SnapNames.com, domain names "...are steadily increasing in value as the most desirable locations become more scarce. As the strategic importance of an online presence rises for business the world over, the price for a good domain will continue to rise in kind" (SnapNames 2007). Unlike the housing market, investing in a domain is only about $6 dollars a year, $6 dollars, with a potential earning of $20 million.