Wondering if domains are still in high demand? Most internet users will be familiar with the concept of websites, and that they are accessed via a unique IP address, which is linked to human readable information also called the “domain name”. B
ut what most aren’t aware of is the $8.6 billion industry that is currently powered by domain name sales. Ultimately, is it an industry with a promising future? Let’s explore some of the biggest moments of the domain name industry in this article.
History of Domains and the Dot-Com Bubble Explosion
The rapid growth of the internet in the 80s caused lots of problems in bookkeeping, which prompted the creation of the domain name system (DNS). During that time, there were seven generic “top-level domains” (TLDs) that were established, which included .com, .net, .org, .gov., .int, .edu, and .mil. These were created to provide a space for corporations, non-profits, schools, networks, US government offices, and the US military.
By 1986, network representatives decided that the DNS system was doable, and proceeded to open it for general public registration. Following that was a period of the massive growth of dot-com startups also referred to as the “dot-com bubble”. Online companies like Pets.com, Webvan, and Boo.com all enjoyed a stock market index of 400%, only to crash 78% from its peak in 2002. However, the dot-com bubble’s influences are still felt today.
Entering the 21st Century
With the rise of high-valued tech companies, many make earning by selling domain names their goal. Insurance.com and Internet.com, for instance, were sold for $35 million and $18 million respectively during the dot-com era. Of course, TLDs will always be a first choice for many, thanks to their reputation. But now that there are over a billion websites in existence, web developers and entrepreneurs can’t solely rely on the influence of TLDs.
Advantageous Domain Names
Domain names also play a part in aiding websites to rank higher on search engine results. By balancing uniqueness and clarity, a website’s target market will find them more easily. Using a domain name generator to check for domain name availability and a list of suggestions based on your keywords is a good idea. There are also various tools available online that will let you see website information, domain data, and the like.
If you’re wondering which domain name sells best, there are various answers. Prices can vary depending on the niche or the industry that it belongs to. However, criteria such as length, keyword accuracy, brand-ability, and adaptability also play a part in a domain name’s price. It can also depend on its relevance – for instance, you can register a domain name for up to ten years, but it might not be worth the same amount after the ten-year passes.
Current Domain Market
As previously mentioned, the domain market is expanding and integrating with other industries. Web or user experience (UX) designers are some of today’s most coveted careers in tech, and the majority involve some level of branding process that requires knowledge of domains. Moreover, the popularity of cloud-based platforms and service providers has further ushered the buying and selling of domains for profit.
The Future of Domains
To answer the question posed – yes, domains are still very much on the rise. The total number of registered domain names is even projected to reach 745 million by 2030, manifesting a CAGR of 7.1%. And with the continuous development of new technologies, we can expect to see an increased level of connectivity among people across the world, driving the need for more websites with unique domain names.