As the world becomes more digital and increasingly more of us choose to live large portions of our lives online, the domains and addresses that make up the world wide web are becoming more valuable.
In 2017, internet real estate (i.e. domain names) are a big business and domain names are becoming harder to come by, since the best domains with prime names are skyrocketing in value.
In the conventional real estate market, an address in places like 5th Avenue in New York City or Miami Beach commands hefty prices.
The internet real-estate market for domain names is no different and domains in some cases are more expensive than real brick and mortar addresses in top global neighborhoods.
Well-named domain names
According to research, some well-named domain names like insurance.com, for example, have already been bought and sold for millions of dollars.
Domains are the real estate of the digital world and will continue to grow and rise in value as the internet becomes more encompassing in humanity’s culture and social order.
In this real-estate boom online, many are realizing that getting a great domain can be a challenge. Many people have already invested and secured the rights to some of the best domain names and addresses.
Therefore, if you are planning on securing a domain name or two for future endeavors or as a future investment, here is what you should know about the booming online real-estate market.
Market value history
The internet’s naming and routing system were created in 1983, and the first domains were registered in 1985.
Many of the top technology companies you see dominating the marketplace today were among the first to register their domain names.
Domains remained free to register until 1995.
Domain name growth
Since then, domain registration has skyrocketed along with prices.
Until about 2005, domain names remained relatively easy to obtain and prices for domain rights were relatively low.
From 2005 to 2010, domains went through a bubble period as the internet became aware that prime domains had intrinsic value.
In turn, the most highly coveted and keyword-based domain names began to become true investments, with a new sector of domain speculators and resellers emerging.
These speculators would buy potentially prime names such as Sex.com or Carinsurance.com and would cybersquat on them in the hopes of reselling them for profit.
This practice saw the price of prime domain names hit levels of incredible proportions, sometimes even with $50 million dollar price tags.
Since 2010, this practice has continued and is responsible for .com’s becoming more and more difficult to obtain.
.Com is highly coveted
The .com top level domain (TLD) is the most coveted on the internet.
Due to its vast market adoption, .com’s are the primary type of domain used online.
Unfortunately, for those looking to get a great .com name, chances are that the domain of choice is already taken.
In that case, purchasing the .com for your business will be considerably more expensive than the standard registration fees associated with registering a domain.
Though most people still covet the .com, other mainstream options have risen to compete, including .net, which is nearly as popular as .com’s in today’s market.
What are TLDs?
The last part of an internet address is the TLD. As mentioned above, the most recognized TLDs are .com and .net, however, a plethora of other TLDs exist.
TLDs can be grouped into 2 main categories.
The difference mainly is that a ccTLD is usually based on a region, territory or country like .ca (Canada) or .cn (China), whereas gTLDs are usually sector or keyword-specific like .fun or .tech.
Country code TLDs and sector specific TLDs are rising in value
Currently, there are more than 1,500 TLDs registered and some are becoming more and more valuable in the marketplace.
This can be attributed to the fact that .com TLDs are becoming more difficult to obtain, and people and brands are increasingly using other TLDs, too.
In actuality, using other TLDs can potentially add great branding potential to your site.
For example, if you were a tech company using abc.com vs. abc.tech, the second clearly identifies your sector and makes it easier for a customer to recognize your brand’s purpose and field.
In another example, abc.ca vs. abc.net would clearly identify to potential customers that your brand was based or operates in Canada.
As the internet continues to grow, it is predicted that these non-conventional TLDs will have a substantially increased value.
Learn more about domain names
If you are looking to enter the booming market of internet real estate, it is important to educate yourself.
The internet is constantly evolving and the addressing and real estate market of domain names that drive it.
To learn more facts about domain names, check out this infographic below.
This post and infographic are courtesy of guest blogger Roshita Pant, a community manager, at Website Builder.
This infographic was created by Website Builder.