- Impact
- 5,741
Previous: Part 1.
You need to partially discard the information of the previous post! Yes I am saying to forget some of the reasons for a numeric domain name’s value that have just been explained to you. Ok, well not entirely, but for what the following paragraphs are going to explain, I need you to open your mind and look at the numeric domain name market from a different viewpoint. Some lateral thinking is now required.
Consider looking at numeric domain names as publicly owned businesses with shareholders. Each numeric domain name is basically one share. Just like any business on the stock market, there is a certain value associated to each share. Some businesses trade high and some low. Our numeric domain name businesses are just the same. So what exactly are numeric domain name businesses called? We will break them up into length increments (N represents the amount of numbers):
N.Com< there can only ever ten available, 0-9
NN.Com< there can only ever be one hundred available, 00-99
NNN.Com< there can only ever be one thousand, 000-999
NNNN.Com< there can only be ten thousand, 0000-9999
NNNNN.Com< only ever one hundred thousand, 00000-99999
NNNNNN.Com< only one million available, 000000-999999
NNNNNNN.Com< I think by now you get the point
Each of these “numeric domain name businesses” offer a limited amount of shares to be traded! This means some of our numeric businesses have a certain amount of exclusivity, especially the first three businesses ranging from N.Com to NNN.Com. You will definitely need a sizable amount of money to buy a “share” in these numeric domain businesses! The NNNN.Com business values are also growing as I write this, soon possibly out of reach for many of the financial average folk.
This is where it differs from the stock market. It is most unlikely that you will be earning revenue from any of these businesses. Consider there are no dividends when investing in these numeric domain name businesses. You view it as being all about the capitol growth of each share! Basically as more folk enter the numeric domain name market, the desire for this style of domain name increases. This desire transfers over to the value of the domains. Everyone wants an NNN.Com domain name. Can everyone afford one? No! So now we have a situation of supply and demand.
The demand is now outstripping the supply, and just as with real world property, the value goes up! The less availability means more value for the numeric domain name investors. Don’t panic if you are not involved yet because there are plenty of opportunities. The NNNNN.Com market is vibrant and there is currently a lot of domains being traded. Let’s just catch our breath for a second and consider the value of the number 4 in a domain again. Does it normally detract from the price? Yes, so how come the owners in the NNNNN market with a number 4 in their domain are making money? Just like the stock market, they invested over a number of years, they held onto the names for a few years, and now that the market has caught up with the NNNNN.Com market, there is profit even with domains that contain the number 4. The supply and demand situation has changed, there is now strong demand for all NNNNN.Com’s. This includes domains with the number 4 because the next numeric domain name business is NNNNNN.Com which has many more shareholders, and it will be harder to get value from your shares.
There will be value down the road, but the wait increases with each number added to the length of the domain name business! Are there exceptions? The answer is yes, indeed, as mentioned earlier the domains with number 8 will always be more accepted as a “good investment” over domains excluding this number. So where do we stand on all this? Well there is a lot to be said for repeating numbers and patterns. Yes a numeric domain will have its value increased when it contains repeating numbers and repeating patterns. Which means, although our “share prices” (reg fees) are the same for everyone, some shares/domains will be a better investment. A domain with 888 at the start or end will be higher valued than a domain with just one 8 in the middle or at the start or end. A single 8 will increase value, but the more the merrier! The reason for the massive change in numeric domains can be put down to one main factor: the asian market (specifically Chinese). They have now entered the market and are trading names in massive volume. They have created a new wave of demand for all numeric domain name businesses. N.Com to NNNNNN.Com and beyond! We are now seeing sales of repeating numbers and patterns well beyond the NNNNNN.Com market. There are still many opportunities at this point of time. Repeating patterns of some 9 number domains are getting attention/sales.
So what does this mean if I am just starting out? Good news is that there are still many numeric domain names business shares available, depending on what you are seeking. You can still purchase in the aftermarket and in the forums for a reasonable price. There are still many opportunities in the NNNNN.Com to NNNNNNN.Com markets. Even the 7 number businesses are steadily growing at this point of time. Again, it is the repeating numbers and patterns that dominate the prices and desirability of our numeric domain name business shares. Keep in mind we are still speculating and there are situations where a good pattern of 6 or 7 numbers may outweigh a 5 number numeric domain name with the number 4 in it even though the shares in the 5 number business are much more limited. So a choice will still have to be made in regards to what is the best investment.
What we should also consider is that the Internet is only basically 25 years old and quality numeric domains names are now commanding great prices. Even if you are not in a position to buy the best numeric domains, be content that your investment in a numeric domain business always has a limited number of shareholders, unlike the businesses on the stock market which can sometimes allocate more shares over time. They do this to create capital to make further investments, but it adds to the amount of shares being held in that company. No matter what numeric domain name business you invest in, NNN.Com to NNNNNN.Com or longer, there can only ever be a certain amount of shareholders in each domain name business.
Will all this investment and interest in numeric domains possibly change at sometime in the future? It is something worth pondering. However, you have to acknowledge the amount of money, in the millions, currently going into these numeric domain businesses. It is hard to consider that all this money spent would add up to nothing over time. I would say that this newly found entry into the numeric domain businesses by the Asian market has cemented the future of numeric domains in the best possible way. If you still don’t get what I am saying, I will put it all into one simple sentence: treat numeric domains the same as you would with shares being traded and held for a period of time for capital growth. The budget and risk is your choice and will ultimately determine the outcome.
Remember that these are only my opinions and I encourage you to do your own research. The Internet is only going to grow! Join a forum and ask questions to learn! When in doubt, ask someone who’s familiar with Asian culture and the importance they place on numbers.
Check out Part 3: Opportunity
You need to partially discard the information of the previous post! Yes I am saying to forget some of the reasons for a numeric domain name’s value that have just been explained to you. Ok, well not entirely, but for what the following paragraphs are going to explain, I need you to open your mind and look at the numeric domain name market from a different viewpoint. Some lateral thinking is now required.
Consider looking at numeric domain names as publicly owned businesses with shareholders. Each numeric domain name is basically one share. Just like any business on the stock market, there is a certain value associated to each share. Some businesses trade high and some low. Our numeric domain name businesses are just the same. So what exactly are numeric domain name businesses called? We will break them up into length increments (N represents the amount of numbers):
N.Com< there can only ever ten available, 0-9
NN.Com< there can only ever be one hundred available, 00-99
NNN.Com< there can only ever be one thousand, 000-999
NNNN.Com< there can only be ten thousand, 0000-9999
NNNNN.Com< only ever one hundred thousand, 00000-99999
NNNNNN.Com< only one million available, 000000-999999
NNNNNNN.Com< I think by now you get the point
Each of these “numeric domain name businesses” offer a limited amount of shares to be traded! This means some of our numeric businesses have a certain amount of exclusivity, especially the first three businesses ranging from N.Com to NNN.Com. You will definitely need a sizable amount of money to buy a “share” in these numeric domain businesses! The NNNN.Com business values are also growing as I write this, soon possibly out of reach for many of the financial average folk.
This is where it differs from the stock market. It is most unlikely that you will be earning revenue from any of these businesses. Consider there are no dividends when investing in these numeric domain name businesses. You view it as being all about the capitol growth of each share! Basically as more folk enter the numeric domain name market, the desire for this style of domain name increases. This desire transfers over to the value of the domains. Everyone wants an NNN.Com domain name. Can everyone afford one? No! So now we have a situation of supply and demand.
The demand is now outstripping the supply, and just as with real world property, the value goes up! The less availability means more value for the numeric domain name investors. Don’t panic if you are not involved yet because there are plenty of opportunities. The NNNNN.Com market is vibrant and there is currently a lot of domains being traded. Let’s just catch our breath for a second and consider the value of the number 4 in a domain again. Does it normally detract from the price? Yes, so how come the owners in the NNNNN market with a number 4 in their domain are making money? Just like the stock market, they invested over a number of years, they held onto the names for a few years, and now that the market has caught up with the NNNNN.Com market, there is profit even with domains that contain the number 4. The supply and demand situation has changed, there is now strong demand for all NNNNN.Com’s. This includes domains with the number 4 because the next numeric domain name business is NNNNNN.Com which has many more shareholders, and it will be harder to get value from your shares.
There will be value down the road, but the wait increases with each number added to the length of the domain name business! Are there exceptions? The answer is yes, indeed, as mentioned earlier the domains with number 8 will always be more accepted as a “good investment” over domains excluding this number. So where do we stand on all this? Well there is a lot to be said for repeating numbers and patterns. Yes a numeric domain will have its value increased when it contains repeating numbers and repeating patterns. Which means, although our “share prices” (reg fees) are the same for everyone, some shares/domains will be a better investment. A domain with 888 at the start or end will be higher valued than a domain with just one 8 in the middle or at the start or end. A single 8 will increase value, but the more the merrier! The reason for the massive change in numeric domains can be put down to one main factor: the asian market (specifically Chinese). They have now entered the market and are trading names in massive volume. They have created a new wave of demand for all numeric domain name businesses. N.Com to NNNNNN.Com and beyond! We are now seeing sales of repeating numbers and patterns well beyond the NNNNNN.Com market. There are still many opportunities at this point of time. Repeating patterns of some 9 number domains are getting attention/sales.
So what does this mean if I am just starting out? Good news is that there are still many numeric domain names business shares available, depending on what you are seeking. You can still purchase in the aftermarket and in the forums for a reasonable price. There are still many opportunities in the NNNNN.Com to NNNNNNN.Com markets. Even the 7 number businesses are steadily growing at this point of time. Again, it is the repeating numbers and patterns that dominate the prices and desirability of our numeric domain name business shares. Keep in mind we are still speculating and there are situations where a good pattern of 6 or 7 numbers may outweigh a 5 number numeric domain name with the number 4 in it even though the shares in the 5 number business are much more limited. So a choice will still have to be made in regards to what is the best investment.
What we should also consider is that the Internet is only basically 25 years old and quality numeric domains names are now commanding great prices. Even if you are not in a position to buy the best numeric domains, be content that your investment in a numeric domain business always has a limited number of shareholders, unlike the businesses on the stock market which can sometimes allocate more shares over time. They do this to create capital to make further investments, but it adds to the amount of shares being held in that company. No matter what numeric domain name business you invest in, NNN.Com to NNNNNN.Com or longer, there can only ever be a certain amount of shareholders in each domain name business.
Will all this investment and interest in numeric domains possibly change at sometime in the future? It is something worth pondering. However, you have to acknowledge the amount of money, in the millions, currently going into these numeric domain businesses. It is hard to consider that all this money spent would add up to nothing over time. I would say that this newly found entry into the numeric domain businesses by the Asian market has cemented the future of numeric domains in the best possible way. If you still don’t get what I am saying, I will put it all into one simple sentence: treat numeric domains the same as you would with shares being traded and held for a period of time for capital growth. The budget and risk is your choice and will ultimately determine the outcome.
Remember that these are only my opinions and I encourage you to do your own research. The Internet is only going to grow! Join a forum and ask questions to learn! When in doubt, ask someone who’s familiar with Asian culture and the importance they place on numbers.
Check out Part 3: Opportunity
