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So stop using this outdated analogy to mislead people!

 

[Particle]

I really got a kick out of a buyer carefully explaining to me that domain names were not property, right before depositing 7 figures into escrow. Uhuh. Whatever you say. It’s not the sort of thing that you want to argue over if you have a deal on the table.

There are plenty of analogies. But, in basic terms, a (generic) domain name sale is the sale of a renewable one year lease from the registrar. As far as property rights go, IANAL, but this could be similar to the UK’s 99 year leasehold property contract. There’s a finite term that the buyer exclusively manages the property, and then it’s up to the buyer to extend that term before it expires, or the property reverts back to the lessor (the registrar). What determines the value of a sale? Whatever the buyer is prepared to pay.

The problem I have with some of the ideas is that meat-space and cyber-space are not exclusive to/from each other. Sure, it’s possible for 8 billion monkeys randomly typing on the internet to all visit the same domain name without too much effort. But it’s not impossible for them all to travel or transact with a particular physical property either, it’s just statistically much more improbable. But those places do exist, such as 1209 North Orange Street in Wilmington, Delaware which is home to over 300,000 corporations including Google, Apple, Verizon, American Airlines, General Motors, Walmart, and Coca-Cola. Does that make the physical 1209 North Orange Street property any more valuable? Probably not.

 

[eyedomainous]

^ Of course "meat-space and cyber-space are not exclusive to/from each other". Every cyberspace domain address is connected to a meat-space "owner's" address in the Whois.

And, of course , it is impossible for 8 billion monkeys to travel to, and do business with, a meat-space address... at the same time, like they could do exclusively with a cyberspace address.

A meat-space address is bound by the laws of classical physics.
A cyberspace address is in the interconnected nonlocality realm of quantum physics. These are two distinct but, yes, interrelated domains.

Just as a "1209 North Orange Street" address is distinct but interrelated to every other 1209 North Orange Street address in the meat-space world. Its primary Delaware distinction is the Court of Chancery ruling on corporate law disputes without juries. But, corporations are not people

 

[alcy]

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!

your missing the point. the keyword is digital.
domain is the house online. and house is a house in real world.

a physical house has no value and meaning in digital world

and domain has no value and meaning in physical world of real estate

thus everything is exactly as should be and everyone should call domains the digital estate

 

[MKA]

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!

The commonality is that fewer people will find you if you don't own the right domain name.

{your brand}.com = Wall Street, New York City

{your brand}{keyword}.com = Willow Street, close to Wall Street New York

{your brand}.xyz = Wall Street, Asheville

When you wake up tomorrow you'll remember only one of these addresses.

A good domain also conveys legitimacy and instills trust. Just like operating a business on Wall Street would.

Is the analogy one-to-one? No. But what analogies are?

 

[hemirate]

if the economy were to get worse and the US dollar stops being the gold standard, could domain names become more valuable?

No, that's just a ridiculous assumption.

 

[Zilla]

it is perfect analogy, I even don't need list any other evidence, just use your own two points:

1. intersection: prime name have the highest foot traffic, and it also play like a intersection role, that why the links always play a big role ...u goto a prime name and use its links(like a hub) to access other website

2. drive industy: yes a nice real estate can drive many different industry just like a nice website like amazon, which of cause drive a lot economy as well..

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!