Domain Name Investing 101: Online Real Estate as an Asset Class

I’m always searching for new ways to make money and regular reader, Joel (aka CreditCardChaser) provides some very unique insights on a new asset class, domain names!  I remember back in 2000, Korea.com was sold for $5 million bucks to the government and I thought gosh dang!  After reading this article, hopefully we’ll all have our own success in something so potentially lucrative. Enjoy!  Sam-urai

Chances are that when you read the term “domain name investing” you immediately have the following questions pop up:

  1. Umm [insert embarrassed pause here], what exactly is a domain name anyway? Do you mean like a website? (No)
  2. What in the world is domain name investing and why should I care?
  3. How would I go about investing in domain names in the first place?

My goals for this article are to show you that: A) Domain names have inherent value B) Domain names can potentially be a great asset class to invest in and C) Give you some practical guidance on how the domain name investing process works.

Domain Name Definition

The Katana: Don’t Count Out The US Consumer! 11/30

katana-1The US consumer is alive and kicking! With the world stock markets crashing last week, nobody really cares about the financial losses in their portfolios, except for whether they can save $100 on a netbook by standing in line for 5 hours!  I expect the markets to rebound this week as the UAE publicly declares it will back all of Dubai World’s debts.

We will never learn from our mistakes because the desire for things is just too great.  You can bet your last dollar that if there’s any hint of a bubble in a new asset class, it’ll grow bigger because everybody will want in to try and capitalize.  I know I will at least try!

The fact of the matter is, if you don’t care, I don’t care because a rebound in heavy consumer spending leads to robust profits, which ultimately leads to higher stock prices and a “better” economy.  We need others to spend, so the rest of us can get rich. With rabid spending on the rise, I’m hopeful 1Q10 is going to be a job market frenzy.  The in-store retail sales figures were only up around 0.5%-1% YoY last week, but we should expect a surge in online sales.

With only one month left in the year, do you feel you are on track to achieve your financial goals? My goals were simply to stay alive during Armageddon, squirrel as much money away into savings, and be the most invaluable colleague as possible.  Of course, what I should have done was bet the ranch on the stock market in February and win the World Series of Poker, but I’m not smart enough.

It warms my heart to see such robust community participation.  I’ve been to numerous sites where I ask a question to the webmaster and it’s just crickets (silence).  I rarely go back as a result.  Hence, I promise to continue being accessible!  To facilitate, I’ve installed the “Comment Luv” plug-in. This plug-in showcases your latest blog post title with link whenever you leave a message and click the box.  The highlight spurs me and others to check your posts as a result.

Finally, can someone educate me about Technocrati? I signed up a long time ago, and have done nothing except put the badge up.  Is Technocrati useful to you?  If so, in what way?  I’m also wondering what’s the point of the pfblogs.org, if you don’t donate money to them?  I signed up, but because I don’t give them money, I’m on the back page and my posts never get highlighted.  Time to remove?  Moving them to the footer sounds like a solution.

FAVORITE POSTS OF THE WEEK & CONTEST WINNERS:

The World Stock Markets Are Crashing & You’re Going Shopping?!

It’s Black Shopping Weekend and world stock markets are crumbling anywhere between 2-5% because Dubai World, the country’s main investing arm can’t pay its $60bn in debt for another 6 months!

Who would have thought that one of the most glitzy countries in the world would have trouble paying their own debt on time?  The fear of systemic contagion is real as investors sell first, and ask questions later.

If Dubai can’t pay their debts, who else can’t?  The US of course, but that’s OK!  Everybody will fund our debt as you observe the US dollar and US treasuries strengthen.  Don’t believe me?  The 10-yr US treasury yield has dipped below 3.25% again.  What inflation?  Cheap money forever!

Investors around the world can mock us, and debase our weak currency all they want!  You shouldn’t care, because all you have to do is watch what investors DO and not what they say.  Investors are rushing in to our arms today crying “We love you America!  Give us shelter!”

So many have disagreed with our “A Weak Dollar Doesn’t Matter Folks!” thesis.  Yet so many are going to shop till they drop for pieces of junk they shouldn’t be buying in the first place!  It’s Black Friday every day at Ross, TJ Max, and Craigslist, so save your stress and relax!  If you go shopping today and check your 401k and stock accounts when you return, you might just have to go back on Monday and return everything!

* CONTEST * Predict where the Dow Jones closes today (11/27) and win a free pat on the back!  I predict 10,288.  I’ll also highlight the winner in my weekly Katana wrap.

Readers, are there any out there who are relaxing at home in their pajamas being entertained by the media coverage of shopping frenzy?  Why don’t people just shop on-line instead, given similar deals?  If you make $20/hr from work, but stand in line for 5 hours to save $100 on a laptop, doesn’t the bring you back to even?

Dale Siegel is offering a second “The New Rules of Mortgage” book as a giveaway.  Why not just comment and give yourself a chance to win?  What’s cheaper than FREE?

Keigu,

Financial Samurai - “Slicing Through Money’s Mysteries”

Twitter @FinancialSamura and sign up for our RSS feed.

Use The Sandwich Method To Provide Constructive Criticism

A Reuben, My Favorite!

A Reuben. My Favorite!

There’s a fine line between being a jerk and being constructive.  As a parent, manager, spouse, or friend, most of the time we just want what’s best for others.  The problem is, we’re afraid to offend and we therefore lose any ability to help.

There’s no better reward than advising someone how to improve, and then watch them flourish.  Push the person too far, however, and you’ll engender resentment.  The Sandwich Method is one the best ways for delivering constructive feedback.

SCENARIO: Your friend Sam comes up with a corny idea for a website called “Financial Samurai.”  Sam thinks it will become a Top 25 personal finance site in the world one day and thinks the tagline “Slicing Through Money’s Mysteries” is catchy.  He thinks he’ll be able to retire off the advertising revenue and is already thinking about buying the latest Audi S5 and quitting his day job with his expected income.

You know better because there are 50 million active websites out there (200+ million total), and only the top 100,000 (0.2%) sites earn 74% of all the revenue according to Alexa.  As a friend, how do you knock some reality into Sam, without crushing his enthusiasm?

THE SANDWICH METHOD TO HELP SAM FACE REALITY:

Book Review & Giveaway: The New Rules For Mortgages

41rpgJfrwQL._SS500_“The New Rules For Mortgages” by Dale Siegel provides a fantastic understanding of everything you need to know about mortgages.  For many, a home is the single biggest purchase of their lives, and the mortgage is a necessary instrument for making homeownership dreams a reality.

Qualifying for a mortgage is daunting, but it doesn’t have to be under Dale Siegel’s guidance.  After all, who’s better to give instructions than the president of her own mortgage company?  It’s important to highlight that Dale truly tries to provide readers knowledge about mortgages and doesn’t use her book as a sounding board for her company.  The book is like a secret weapon for first time home-buyers who dare tip-toe past enemy landmines.  The enemy is the industry which has adeptly blown off many appendages via exotic liar loans and oh-too-high fees.