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The Next Generation Investment Destinations
The Next Generation Investor is striking gold in
unconventional investment arenas such as Domain Portfolios. With
little bit of technical knowledge and smart thinking anyone can
make a sizable profit by investing in domain portfolios.
Key factors for any Investment are;
1. Risk
2. Time Horizon
3. Diversification
We will apply these basic rules in Domain Portfolio Investment.
Risk
A risk free investment earns little profit or no profit at
all. All investments are prone to risk. But to what level of risk
is important. A high level of risk will yield more returns.
However, this risk must be spread over a period of time rather
than short term high risks. In case of Domain Portfolio
Investments, the actual investment is owing a domain. Hence one
must be clear on how much investment will go into building their
Domain Portfolio. Domain Prices are always on the rise. At the
same time, older domains are fetching far better pricing than
ever.
Time Horizon
In any type of investment, a short term venturing increases
the risk multifold due to market dynamics, policies etc. If the
investment period is stretched over years, the returns are
attractive and less risky. For example, a generic domain can
generate more revenue when sold after few years than selling
immediately. Experts might argue that navigational ads have
been generating lesser and lesser revenue than few years back. But
what has to be looked at is, the revenue generation was too high
because, a) naive user clicks b) Fraudulent Clicks. As the
industry starts adopting advanced technologies, the revenue starts
stabilizing. Now the quality of clicks will be high. This means
the ultimate advertiser will get almost what he wanted in majority
of the cases. With proper implementation of technology, a
stable stream of revenue can be generated without affecting the
entire Advertising Chain. This is good for the industry as whole
in long term.
Diversification
This is very important to mitigate risks due to external
factors such as market fluctuations or major policy decisions etc.
Even investment in Domain Portfolio requires in depth research on
how the investment is going to be made. For example, domains can
be acquired for reselling in after market, type in traffic can be
monetized in various ways such as landing pages, portals etc.,
specialized domains can be developed as verticals for generating
more revenue. Acquiring domains in upcoming fields, trends is
another way of diversification.
Also Read : How to build a
successful domain portfolio |
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