Morning Folks!!
In a few years when we all look back you might realize all the money left of the table for GREAT domain names. As these two worlds converge, it seems pretty obvious what the outcome will be. When money loses value some assets hold their value. May even increase in value.
- Hong Kong’s Causeway Bay, rent $2,630 a square foot per year
- Fifth Avenue, $2,500 a square foot per year
- Times Square, $2,100
- Hong Kong, Central $1,856
- Hong Kong, Tsim Sha Tsui, $1,547
- Paris, Avenue de Champs-Elysees, $1,129
- New York, East 57th Street, $1,100
- New York, Madison Avenue, $1,100
- Tokyo, Ginza $1,057
- Tokyo, Omotesando, $972
http://newyork.cbslocal.com/2012/11/15/fifth-avenue-no-longer-the-worlds-top-retail-address/
Direct Correlation with domain names? You bet! But the owners of the real land have stronger stomachs than most domainers. Make any comparison you like. But each of those above are limited to the size of their walls and the traffic from a very concentrated but limited area. You can expand a domain name to infinity and add very little costs. So smile, relax, sit on the beach and wait. Just keep snagging category defining domain names. We have some of the most valuable real estate ever known to man.
Have a GREAT Day!
Rick Schwartz
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UFO
The best shopping space is becoming even more valuable. Essentials based on price can be bought on the net, a day out, a coffee and a window shop still has its appeal (Luxuries and clothes etc will still tend to be bought in shops). The difference though is shoppers are likely to be clustered even closer together to have that experience, I.e. In a well built shopping mall.
Kobe Green
Rick, I see that you’re playing this issue out til the fat lady sings. Your last three blog posts are pretty much stating the same argument.
I do agree with you in part on the ever increasing value of”category defining domain names” (your words, not mine). You’ve done well for yourself so there’s no arguing on that matter.
The opportunities are certainly tremendous for those who realize the potential of this brave new world.
Martin
.whatever fiasco has to burn itself out first but I agree with you.
wonder how .nets and .orgs fare.
Leonard Britt
I recall a conversation I had with an employee of a music store at Dolphin Mall in Miami which was closing down a couple years ago. They had moved in when the mall had opened and were enjoying a prime location in the middle of the mall. The lease had expired and the new tenant (clothing store) was going to be paying $60k/month which the music store could not justify given the dynamics of that industry. However, many businesses and web developers do choose to operate in subprime locations or with reg fee quality domains. Then they have to attract business with some sort of advertising or promotion.
Rick Schwartz
Kobe,
Just illustrating an important point that can’t just be glossed over. This is an excellent comparison.
This is another Mr. Johnson moment when he found out that not having the .com cost them 61% of their customers to confusion. The fat lady has not even begun to sing. Just assembling the chorus lines and have folks see the parallels that I see and why I see them and why they are important to their futures.
A category defining name is an asset when you own it and it is a weapon of mass destruction when your competition owns it. When the proper weight is given to each……values change.
Anunt
Put your money where your mouth is…i don’t see the big boys buying $100k+ domains anymore…they are just sitting pretty with old investments…why aren’t you guys making NEW big investments in domains if the future is sooooo bright???
I’m not talking about buying domains under $10k…I’m talking about making BIG investments $100k+ for domains!!!
If you say the future is sooooo great for domains…why aren’t you buying big domains???
Only end users are buying big domains because they have no choice since they are late to the game…but what about investors….there are NONE!!!
Domain Game is over and dead!!!
Martin
“Only end users are buying big domains because they have no choice since they are late to the game.”
LOLASAURUSREX!!!
You got that right.
Ron
Anunt is the same guy who paid $24K for cloudapp.com
UFO
Have a read of this… http://www.dnjournal.com/pdf/archeo.pdf
Anunt, there’s plenty of money out there for the right deal. You better believe it, big money.
At the moment though large numbers of investors are taking a tread water approach until things start to turn and those in the game are trying to consolidate what they have.
Give it a few years, and the floods of capital will arrive once again. There’s loads of it sitting around on the sidelines.
Michael
Retail locations can fight against domains by dropping the price of rent, because I would rather go to the mall and get what I want right now. Lower rent = more new stores opening and less people on the net. What do you guys think?