27th October 2008
Judge domain names 'on ecommerce profits'
Domain name news brought to you by DescriptiveDomainNames.com
The best way to judge the ability of a generic domain name to offer value during a recession is to observe the profits its owner makes, one expert has claimed.
Alex Tajirian, chief executive of CircleID, said that the answer to whether domain names are recession-proof or not will be provided by e-commerce profits.
Mr Tajirian claimed that some domainers have seen the prices of domain names and the level of sales fall, suggesting that the domain name market could be as susceptible to the same pressures as other sectors during the economic downturn.
However, this is the wrong barometer to use, he argued.
Instead, he said, "a strong showing during the holidays would give domain names, which are vehicles of e-commerce branding and traffic, more plausibility as recession-proof assets."
The value of generic domain names continues to hit peaks, despite the financial climate. This month, it was announced that Cold.com would be auctioned for a minimum of $1 million.
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