Domain names are not the real estate of the online world at all.

[789.xyz]

The comparison of domain names to real estate has always been a misconception. Their only commonality is their scarcity. The two biggest differences between domain names and real estate are:

1. In the physical world, prime real estate locations have the highest foot traffic. For example, you have to pass through an intersection to go to other places, which is why properties at intersections are more expensive. But in the online world, do you have to go through another premium domain to access a particular domain? Absolutely not.
2. Real estate can drive a large number of other industries, whereas a domain name is just a domain name. It can exist independently of hosting servers and doesn't drive any industry at all.

So stop using this outdated analogy to mislead people!

 

[Future Sensors]

I get your point, but the analogy helps some folks grasp the idea of digital scarcity and value.

 

[HotKey]

1) Many premium properties don't lie at intersections, look at waterfront, or spawning rural, or long well-maintained streets with old luxurious build in busy or quiet areas in big cities. Properties at intersections are a pain in the ass to access anyways their only value comes with visibility not necessarily with quality.

2) Premium domains can drive a massive number of relative names, just as a premium property can increase the value of the surrounding properties

The analogy is correct.

 

[domainbroker247]

It's not outdated... I don't think so! and I'd recommend you to read this: tldinvestors.com/2019/01/the-7-personalities-of-a-domain.html

and it's not outdated because you're not looking at it properly! Without domains, there is no Internet! Good domains are like good locations and once one is taken there is no way to take that "space" so it is limited just like the actual world real estate perhaps even more than that! I mean surely, look, people are going to Mars! So there is an almost infinite "space" whereas in Internet, the .com part at least, is extremely limited, if you own music.com or download.com or news.com there is no way to replace that! .net doesn't do it, other extensions don't either, so yeah, it is indeed real estate, but way more competitive than actual real estate.

 

[Future Sensors]

So stop using this outdated analogy to mislead people!

You changed your mind? Because earlier you said this on the forum:

 

[gilescoley]

With this kind of comparison, you just don't understand domain names yet.

 

[bmugford]

The comparison of domain names to real estate has always been a misconception. Their only commonality is their scarcity. The two biggest differences between domain names and real estate are:

1. In the physical world, prime real estate locations have the highest foot traffic. For example, you have to pass through an intersection to go to other places, which is why properties at intersections are more expensive. But in the online world, do you have to go through another premium domain to access a particular domain? Absolutely not.
2. Real estate can drive a large number of other industries, whereas a domain name is just a domain name. It can exist independently of hosting servers and doesn't drive any industry at all.

So stop using this outdated analogy to mislead people!

It's actually a very good analogy.

1.) There is demand for premium locations. That is not just based on "foot traffic".

2.) Many domains, especially .COM, do come with some "foot traffic" aka targeted traffic.

3.) Better domains make companies more credible. The perfect domain can provide almost instant credibility.

Among many other things...

Brad

 

[DmytroK.]

There are really valuable unique domain names, about which a lot of people know, like Fashion.com, etc. And there are domains with a lot of traffic, which are quite profitable. So at all domains Could be like Real Estate.....

 

[D Haynes]

1. Premium domains absolutely have high "foot traffic" or "organic visitors" in domain terms. A name like sneakers.com will naturally have more organic visitors than ILikeBargainSneakers.com. While you don't have to go through a premium domain to get to another some sites will see a high percentage of their visitors coming to their site through links from others. Some might see sites like Google as that busy intersection.

2. Domain names drive pretty much all industry globally.

Maybe you're just boss level trolling

 

[Refuelgym]

I think the analogy of comparing domain names to property is fairly adequate, if not more.

 

[789.xyz]

You changed your mind? Because earlier you said this on the forum:

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You changed your mind? Because earlier you said this on the forum:

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Show attachment 263705

Yes, my view on domain names has evolved over time.

 

[pb]

There are not perfect analogies, otherwise it wouldn't be an analogy, but simply the same thing. Domains and real estate have enough things in common to be compared like that.

 

[johnn]

Similar:
- One name for one end user - One house per family
- Pricing depending on the end users - big guys/companies can pay for $xxx,xxx per name, small guys (from Namepros members they will pay $50 for a single dictionary word) - Housing prices depending on locations

These are nonsense Analogies:
- Appraisal
- Search Results from Google
- How many extensions are taken
- Brandpa, Atom, etc... approved
- Backlinks
- Similar names sold prices...
Who cares???

Actually the domain name business is very simple. Just ask yourself a question before buying a name:
Who will be the customers and what type of website can be made.

 

[bmugford]

Yes, my view on domain names has evolved over time.

That's quite the evolution in a few months.

Brad

 

[eyedomainous]

In a sense, I agree. But, the opposite is true.
Meat-space addresses can't compete with meet-space domain addresses.

Comparing domains to real estate does a disservice to domain names.

With a Real Estate address one really has to be there to access what's at that address. With a domain address millions upon billions of folks, from anywhere on earth, can access that address... at any given time.

This cyber-time domain dimension blows real estate off its value matrix map.

The physical limitations of a real estate address cannot serve millions of people at the same time. While a domain name address simultaneously does business with folks in every time zone on Earth.

Example, YouTube.com's business grows 500 video-hours per minute.

Also, the value of real estate is not about the address, its about the Location Location Location of an address in a 'good neighborhood'.

A domain name address virtually stands alone.

 

[Kyle Tully]

Yes, my view on domain names has evolved over time.

Do you think that is related to buying a bunch of random 3L .xyz names?

 

[789.xyz]

Do you think that is related to buying a bunch of random 3L .xyz names?

Everyone has their own style and approach.

 

[bmugford]

In a sense, I agree. But, the opposite is true.
Meat-space addresses can't compete with meet-space domain addresses.

Comparing domains to real estate does a disservice to domain names.

With a Real Estate address one really has to be there to access what's at that address. With a domain address millions upon billions of folks, from anywhere on earth, can access that address... at any given time.

This cyber-time domain dimension blows real estate off its value matrix map.

The physical limitations of a real estate address cannot serve millions of people at the same time. While a domain name address simultaneously does business with folks in every time zone on Earth.

Example, YouTube.com's business grows 500 video-hours per minute.

Also, the value of real estate is not about the address, its about the Location Location Location of an address in a 'good neighborhood'.

A domain name address virtually stands alone.

This is an excellent point.

Essentially a brick and mortar retail business is limited to the demand in the local market.

With a domain and website, it can make niche businesses viable.

You go from a limited pool of potential customers to the world.

Brad

 

[Kyle Tully]

Everyone has their own style and approach.

So perhaps for some domains are very much like digital real estate?

 

[domainbroker247]

400 hours of that are reposts and spam, believe me! What a waste! I wonder how much they pay to host all that, it's ridiculous, but it's good to be that next level rich.

 

[ivey]

Domains are literally numbers like a physical address to locate a certain place. Those numbers are too difficult to remember so they are given letters/words to make finding a virtual place easier. Without those numbers/domains, you have no internet. imagine coming online and you have nowhere to go? It's like getting dropped in a black hole. Like prime physical addresses, some domains are prime and can command thousands to millions of foot traffic, even without seo work.

 

[Molly]

In the real world, owning property is the best way to build wealth. That could be true virtually, as well, if domain names were truly a limited commodity. However, they’re not really — there are just too many available variations.

That said, one word .com domains like cars.com or houses.com are digital gold, for reasons that should be obvious. There’s also a market for two-word domains, and some even longer… because there really can only be one.

I do wonder, if the economy were to get worse and the US dollar stops being the gold standard, could domain names become more valuable? For sure things like land & gold would, I think?

 

[Inframan]

The truth of the matter is domain names are the digital $1 scratch off lottery ticket.

 

[URL Stream]

Here's a link to a thread previously discussing this topic:
https://www.namepros.com/threads/poll-what-are-domains-most-valued-as.1300108/

 

[Future Sensors]

That's quite the evolution in a few months.

I think it's quite monumental.