Domains Versus Shares

[Billy!]

Domains Versus Shares

Whats your opinion, is there more money to be made from Domain Names or the Share Market?

I am in the process of selling 3 dotcoms for about $6000 which I only paid around $60 for, in my books thats a 3600% profit.

It would be pretty hard to make that on the sharemarket in a couple of years.

 

[JasMate]

Domains Versus Shares

Whats your opinion, is there more money to be made from Domain Names or the Share Market?

I am in the process of selling 3 dotcoms for about $6000 which I only paid around $60 for, in my books thats a 3600% profit.

It would be pretty hard to make that on the sharemarket in a couple of years.

Very good topic for discussion. I have wondered the same question many times in my own head and have come up with a few answers and arguments, however one main point stands out for me is the risk factor. Shares are risky no matter how stable the company is that your investing in there is still a small - medium element of risk.

Domains however seem to have almost zero risk factor which is nice. As for the profit potential comparing the two, domains comes out on top in some situations however for the avid more experienced share market guru shares would be a much much faster way to make money :imho:

 

[VURG]

I disagree about shares being more risky than domains. You don't have to pay an annual fee to keep shares. Most banks would disagree as well. How many banks would let you put up a domain as security to borrow more money to buy more domains?

However, I tend to prefer the idea of investing in domains than shares at the moment as the internet is in a high growth period that is faster than the average business. I don't know about 10 years from now though.

It does depend on the domain though. I think that some domains will go down in value in the future due to nature of the words/names/letters/numbers within the domain. (e.g. AthensOlympics.com was more relevant in 2004 than today)

 

[snoop]

I am in the process of selling 3 dotcoms for about $6000 which I only paid around $60 for, in my books thats a 3600% profit.

It would be pretty hard to make that on the sharemarket in a couple of years.

Do you only own 3 domains or are there others that haven't sold?

Many people own hundreds of domain and only sell a few, that would be like buying alot of small companies and derivatives on the stock market. You would likely see very high returns on some of the purchases, whilst many buys would result in fat losses.

 

[IAmAllanShore]

Depends on what you're better at

No need to compare the two, really.

What's better, real estate or the stock market? Investing in fine art or classic cars?

-Allan :gl: (The last two are rhetorical only - no need to answer )

 

[B33R]

IMHO, if you're skilled in either (or in fact, any) area then you can make money at it.

A couple of years? In the stock market it's relatively easy to make a return if you're quick enough, either by picking the right stocks longterm or by predicting a takeover, or multiple takeovers.

Both markets, stock and domain, are quite similar really, in that it takes skill and a gambling man (or woman). If you know the right areas to invest in then pretty much anything's possible. You just need some courage and plenty of knowledge and you'll get equally far in either. :imho:

Anyone else feel the urge to start an experiment?

 

[Billy!]

Do you only own 3 domains or are there others that haven't sold?

Many people own hundreds of domain and only sell a few, that would be like buying alot of small companies and derivatives on the stock market. You would likely see very high returns on some of the purchases, whilst many buys would result in fat losses.

Yes I own 160 more.

 

[faisj]

That all depends on the stock. (and amount of investment)
You have stock with high returns but, they are more risky.
(same like domain names)

 

[Spade]

Consider the following:

Domain Names are much like property (virtual) - and a completely different type of investment. With stocks your investing in business and its success, a business can go big or a business can sink. If you consider the internet to be a country, then premium domain names are beach front property.

And, if you know anything about Beach Front Property, it typically doesnt lose value. I tend to think an investment in a premium domain name is better than an investment in business. Look at some of the gains over the past few years on domain names? As the internet continues to grow exponentially - domains are only going to become more valuable.

Buy a 3 letter .com right now, the cheapest one you can. Lets say you get one for 3k - Im willing to bet next year at the same time you'll do very well on your investment. My money is in Domains... what little of it I have.

 

[yandig]

I follow the stock market pretty closely. There is no doubt in my mind that Domains are by far the better investment choice. Even if a person is knowledgeable about stocks in general, it's easy to lose money in the market. A stock investor has little or no input into the decisions of the company, nor can they substantially affect fluctuations of the stock price. A domain owner can promote their domain to their heart's content, seek out end-users, and set their price point.

While I haven't sold 3 domains for $6,000 - I've made a nice return this year, much better than I could have made if I had put my money into the stock market.

 

[snoop]

Consider the following:

Domain Names are much like property (virtual) - and a completely different type of investment. With stocks your investing in business and its success, a business can go big or a business can sink. If you consider the internet to be a country, then premium domain names are beach front property.

And, if you know anything about Beach Front Property, it typically doesnt lose value. I tend to think an investment in a premium domain name is better than an investment in business. Look at some of the gains over the past few years on domain names? As the internet continues to grow exponentially - domains are only going to become more valuable.

Well during the tech bust domain prices fell by about 90%, so I don't think the comparison to beachfront property is a good one. Domains are high risk and will rise and fall in price, often by large amounts..

 

[Keral_Patel]

Well for guys like us domain business is more profitable.

For guys who had always been in or around share-markets and can make some very good predictions the share-market. Shares are good for them.

Another scenario is nothing is good for anyone.
The share-market expert might also incur major loss.
Or a domainer might invest large amounts in wrong kind of domains.