The virtual real estate or domain name business is clearly having a lot of takers ever since the days when domain names like ‘Business.com’ were sold for a hefty $150,000 (1997 price). Today, names like ‘Bookmarks.com’ and ‘Diamond.com’ sell for a cool $300,000 and $7 Million each.
Auctions similar to the one held yesterday in the ballroom of the Renaissance by DomainFest, have avid businessmen, giant corporates and even small businesses vying with each other to purchase names that will gain them massive profits in terms of online marketing and advertising.
There are some who even ‘flip’ names just like regular real estate investors. ‘Flipping’ in regular real estate refers to houses or plots that were bought for a certain amount, held for a while and then re-sold for a higher amount at a later time. Domain names have been known to have been re-sold for a profit of around a Million dollars if not more.
In August 2006, there were an estimated 92,615,362 websites known to populate the Internet. The chances of a domain name that suits your business not existing on the Internet are slim, emphasizing the lucrative potential of a business in domain name real estate.