Top 6 Important Domain Name Trends this year

As the market continues to grow in 2021 & beyond, various domain investors want to know what is happening in the domain world. With every passing year, new domain name trends are introduced in the industry. The acquisition of the right domain name is crucial for a successful business, so it is better to look out for and consider the best trends.

Top 6 Important Domain Name Trends in 2020
Read on our post as following are some of the domain name trends that savvy and forward-thinking people can take note of in domain investing:

1. Increasing Domain Name Costs

There is a high probability of the cost for domain registration to increase greatly in 2020. The US Department of Commerce had modified its agreement with VeriSign in 2018, the firm that runs .com, to permit it for increasing the costs it charges every year to someone owning .com domain.

VeriSign charges a fee to the domain name registrars. And when a firm increases its fee, then that registrar has to charge its customers the same costs.

Probably, VeriSign will increase its price by 7% for .com this year and each for the coming few years. This keeps on totting up and increases the prices for holding onto the domains with every passing year.

Also, it is likely that the .org domain costs will increase in the near future. Last year, a for-profit private firm got the rights to run the .org domain. This domain has been run by a non-profit company for almost two decades. The firm, ICANN, that manages the domain name market, has also removed the price limitations on .org last year.

Many registrars have been resisting these price increases. But ICANN seems to be avoiding the people who register the domain names. Everything is indicating a good increase in the prices ahead.

2. Increasing Competition in the Industry

Domain investing is interesting as well as profitable but is not as simple as it seems. This can take longer in making money purchasing and selling domains. And when an increased number of people start investing in domains, competition increases in acquiring great domains at affordable costs.

It is time for domain investors to become creative and try hard to get the best deals available. This might indicate sending emails to the domain owners to check if they are selling them. Also, it might mean that it will take a long time to close every deal.

You can ask anybody who has invested for more than ten years in the domain market and they’ll tell you how much is it tough to work in. This becomes true especially with the expired domain name marketplaces, where deals increase the prices drastically.

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All thanks to the increase in prices, you can combine it with the increased price of renewing domains. And some of the domain investors will have to reassess their plan this year and in the future.

3. Fractional Domain Name Ownership

Some of the best domain names are sold to people for thousands of dollars. Below are the 2 basic problems that stop a large number of people from investing in these domains:

  1. One should have a huge amount of money as many great domains costs as much as a nice apartment.
  2. Selling a premium domain for great money may take more than usual time.

You can consider the idea of fractional domain ownership which allows you to buy shares in the domain name.

Suppose if a domain name costs $1,000,000, people can purchase 1% shares in that domain for $10,000 each. If that domain gets sold later for $2,000,000, every share would be exchanged for $20,000.

These domain name trends encourage people to invest in great domain names which otherwise they wouldn’t have done. Also, it enables people with premium domains to cash them out quickly.

Though there are some difficulties associated with fractional domain ownership, 2020 can be considered the year in which they get solved. If we place the required legal and tax structures and technology in place, domain investing could become much more convertible this year.

4. More Attention to Landing Pages

The domain name parking is on the way out and the owners consider selling their domains instead.

With domain parking, the owners earn money every time a person lands on one of their domains and opens an advertisement. But the modifications in the web browsers’ functionality and domain name advertising platforms have considerably decreased the money domainers make from this.

These changes have led many to shift their focus from holding domains and collecting ad profit to sell their domains. Now, the domainers have removed the ads from their domains and park their domains with notifications that they are available for sale.

Many firms have started relying on different sites like Dan.com or Efty to create for sale pages quite simply. Look ahead to focus even more on this in 2020.

5. It’s All About One-Word Domain Names

The 1-word.com domains are still the most desired domains in the market as firms are fond of them and investors yearn for them.

Some organizations that acquired 1-word domains last year are as follow:

  • A car rental company acquired com
  • A blockchain company, block.one, bought com for $30 million
  • A real state, lead generation company acquired com

There are many firms that begin with a lengthy domain or one that’s not .com. And then, upgrade to the one-word .com domain as their business grows or generates venture capital.

Since the cost of these .com domains has increased rapidly, it has raised the value of other extensions as well. The .io and .co TLDs have become a great starting point for organizations, and this has also made domain investors include them to their portfolios.

Read more: A Complete Guide to Generic Top-Level Domain

6. Pursue till End

It is good to stay informed about the latest domain name trends, but don’t get attracted to any fancy thing.  You should regard what has worked for you in times gone by and if it will get affected in the future.

Some of the best domain registrars you should consider

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Good luck with an amazing year in the domain investing!

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