A good domain name is, and will always be, essential for any online business. If you ask me, the internet is still only just evolving from infancy. It's a long way to maturity.
Still the world has come a long way since Ken Olson, president & founder of Digital Equipment Corp. etched his name in history, when he proclaimed less than 30 years ago, "There's no reason why anyone would want a computer in their home."
How technology has changed our lives within a span of a single generation. Sooner rather than later, more and more businesses will want to go online and cater to a global market instead of being content with the local neighborhood. And one of the first steps after deciding what business you want to do, is getting a good domain name for your business.
A domain name can make or break an online venture. A domain name is a company's identity online. It is your brand, your personality, your trademark. So, choosing the right domain isn't easy.
BuyDomains.com argues that:
"Today .COM and .NET names have established recognition and can identify your company on the Internet forever. For this reason, they have considerable resale value and serve as excellent investments.
Over time, most, if not all companies will conduct a considerable portion of their business over the Internet. A domain name that is easy for your customers and prospective customers to remember is the key factor in generating new business and conducting business on the Internet.
Having relevant "keywords" to support your domain name is also an important consideration and will enable customers to find your online business effortlessly through Web based search engines.
Another excellent marketing tactic you should consider is to have multiple URL addresses (including your domain name) point to the very same Web site. This is very simple .....This will allow you to keep your legacy domain name, while multiple new e-business names conduct commerce and are listed in the search engines, significantly increasing your Web site's overall traffic."
A web site is a worldwide advertisement that runs 24/7. For the price of one print ad, or one-tenth of a 30 second commercial, you can have a solid web site designed and running every single minute of every single day. Show a company how a few thousand dollars invested in a domain name & a web site now can translate into 100 years of sales and effective promotion, and they will all be scrambling to get in line.
Most companies, even small ones, will tell you that having a web site is no longer an option. It offers the business owners the opportunity of having potential customers view their products or services day or night, without needing to an outlay of huge sums of money.
But then, many small and medium sized businesses that are already online have poor or difficult sounding domain names. Names that they would readily change in an instant if they had the right domain name. So there will always be people and companies who will be looking at the domain resale market for a better name for their business. This is key.
When Anysoft, a Massachusetts company, acquired any.com for $30,000, their vice-president, Emily Shain, said it was worth the money because the domain name was such a vital marketing tool that would help customers find them easily.
If you are at the right place at the right time with the right name, you could find yourself pocketing some nice cash.
Even governments are getting in on the act. The New Zealand government shelled out NZ$ 1 million for newzealand.com. As a result, there was understandable criticism in the NZ parliament over the purchase as being a waste of tax payers money.
What was the government's response? Mark Burton, the NZ Tourism Minister had this to say, "There is no question that this domain will provide an invaluable portal for... commercial entry into New Zealand for those interested in tourism, commerce, and industry.
The South African Government offered US$10 million for southafrica.com. It has also been reported that korea.com was sold for US$5 million to True Net, Korea's largest Internet service provider."
Author, Tariq Ghafoor writes, "I feel that there's still reason for optimism in the domain aftermarket but in order to profit there's a crucial need to alter one's perception and strategy just like our brethren have been forced to do in other web-based businesses."
It's true. The heady days of the domain gold rush has seen its final sunset. We are seeing shifting trends in the arena. To cope with the changes, a domain speculator needs to see himself as a domain entrepreneur and begin to organize his domain names and increase their value and prepare them for prospective buyers.
Edwin John is an author and webdeveloper
He is the author of "How I Sell My Domain Names"
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