Why Domains?

Introduction

---

Domain Names are the real estate of the internet (your web address, e.g. finance.co.za). Some of these domain names, just like physical real estate, are extremely valuable. Domains are being traded as commodities and the domain aftermarket is a $ 1Bn industry. The most expensive domain sold to date, is carinsurance.com – it sold for $ 49m, that is more than R 500m! Its initial registration price was below $ 5.

With the rapid expansion online, people often ask us: “How do I start an online business?” The answer is perhaps best illustrated through an example.: If I owned pajamas.co.za I could start a website selling pajamas.. Product can be supplied by back-end suppliers, so no need to keep stock etc. Marketing can be done online (Facebook, Twitter etc., although the kids would probably have to help here!). Because my website address tells the consumer what I do and it is memorable, I can build a brand at a fraction of what it would cost outside the internet. That makes the address (domain) “pajamas.co.za “a valuable commodity.

Although the international market is mature, there is a huge opportunity to trade in South African domains. As with every other commodity, the first ones in will stake the best claims.

Background

---

From a South African business perspective, the internet is the next big frontier. Although big business is already playing BIG on the internet, there is massive scope for businesses and entrepreneurs of any size. The scope is unlimited: Existing businesses can expand online. Entrepreneurs can start new businesses online. Parents can start an online business for their children, even while they are still at school, or even kids can start their own business.

The advent of the internet and the way it all fits together, has also resulted in the birth of a new commodity. Internet addresses (or domains as they are commonly known), are widely traded and are viewed as a commodity by thousands of investors across the Globe. There are several reasons for this that will be explained later in this brochure.

The international domain market is reaching new heights daily. Just Google “most expensive domain names” or go to http://dnpric.es/ - They publish a comprehensive list of domain sales. Keep in mind these domains originally cost less than $ 5 to register. You can also go to www.domainmarket.com to see what the asking prices of domain names are.

Domain names have greater potential for return on investment than either shares or bricks-and-mortar real estate. The beauty about domain names is that they can be used to make money. You don’t have to be a Harvard whiz to realise that if you own the domain jeans.com you will get a heck of a lot of people coming to your website looking to buy jeans. And they don’t need search engines to find you. All they have to do is type “jeans.com” into their web browser.

The South African domain market is in its infancy stages. A handful of investors have realised the underlying value of domain names whilst big business is still slow to react. This has created a tremendous opportunity for savvy investors. Whilst top names like property.co.za have already ended up in the hands of an end-user (at a reported R3m), there are thousands of domain names that will be sought after in the next 3 to 5 years. It is still possible to buy a domain name for R 1500 and sell it for R 15 000 a year later. Or register a new domain for R 75 and sell it for whatever your price is. Or buy a domain and develop it into an annuity income business.

The single biggest attraction to invest in domains as opposed to the stock market for example, is the determination of price. On the stock market and other commodity markets, other investors and factors determine the value of your investment. Buying and selling domain names, you determine the value of your portfolio, within certain guidelines of course.

Investing.co.za will provide you with the necessary training, tools and support to start your own domain name portfolio. The subscription of R 195 per month includes access to all areas of the system, allowing you to freely trade in domain names. You can search, register, buy and sell domain names for your own account. You can see what others are buying and selling domains for. You will also have access to daily special offers and deleted domains. There is no minimum investment or other hidden costs. It is that simple – if you don’t see anything you like, you don’t buy. You might buy several domains every month or only buy and sell one domain in your lifetime. The tools will allow you to buy and sell both on the investing.co.za system and in the open market.

You don’t have to risk thousands of Rands to explore this opportunity - R 195 p.m. on a month to month basis.

Why are domains valuable?

---

Domains are the “property” or “real estate” of the internet. You wouldn’t build a 5 star hotel on the wrong side of town, would you? Similarly, internet investors develop their online businesses on the right internet address – why?:

• The right internet address(domain) is memorable and tells consumers what you do. It is highly brandable.
• The right domain can help a webpage to rank on Google – and we can prove this. For this reason businesses that decide to migrate online, are looking for these domains. To rank on Google means to be displayed high up on the search results. If I type in Google “bike finance”, the authority in that field is listed right at the top.
• Authority – owning the right online address elevates a business as the authority in its field, e.g. Bank of America owns loans.com.
• The right domain can increase the number of visitors to a website through type-in traffic. This concept will be explained in the tutorial on the system.
• Investment value. Domains are increasing in value due to supply & demand.

Summary

---

• Domains are valuable. We will teach you how to determine the underlying value of a domain.
• Never pay more than 10% - 15% of the underlying value. Then you know you have invested wisely.
• Only 900 000 .co.za domains have been registered. More than 113 million .com domains have been registered. New coza registrations have increased to just about 200 000 new registrations per year, with deletions of between 60k & 100k.
• You as the investor make your own buying & selling decisions.
• We have up to 10 domains in our “Bargain Bin” every day. These are real give-aways that allows the early bird to buy and sell quickly for decent profits. First come first serve basis.