in Digital & Tech

Longtail Domain Investment and Risk Management

Here are some insights on why longtail domains may no longer be a viable speculative investment for domain investors as a long hold. Sure you can make a quick flip if you know how, but as a long term investment strategy, I do not recommend longtail investment especially outside the .com/ccTLD space  if you are not going to develop and invest sufficient time and energy to make something out of the domain and website.

I feel long tail net/org/us are at risk of devaluing significantly due to a number of factors and these factors put together need to be taken seriously by any speculative longtail domain investor.

1) Google’s algorithmic changes. Google has made it harder to use an Exact Match Domain (EMD), especially a longtail domain to acquire rankings with a relatively thin site. This simply means that you need to invest more money into your longtail domains to monetize or resell them, hence reducing profit margin for the quick flip model.

2) New TLDs and the choice factor for new registrants. This will be slow to take off, but will gain momentum as the public gets educated.

3) Google/Amazon and other big brands will give domains away for free and up-sell with other services making the need to buy a long tail net/org a less attractive alternative to a .com or new TLD.

4) Apps and mobile reduce the need for domains, especially long tail as apps reside primarily on “brand” domains.

5) Facebook will launch their own shops soon where you will be able to sell directly from Facebook…no more need for a separate e-commerce website or domain name.

6) The Top Level Domain will get more meaning and become less generic. The TLD will essentially become what use to be the SLD (second level domains) so will become … everything moves up a spot. Everything is becoming more focused as information and population grows. This will reduce the generic nature of domains and the need to market cross TLD. Hence net and org will retreat to what they were initially designed for (networks and organizations) …in time.

7) Social media is reducing the need for a website. Teenagers now have a website on Facebook. This takes market share away from domain registrations.

The above list already has an enormous impact on longtail investing and investors should not ignore these warning signs. You need to take action now before its too late. A lot of people will miss this boat and end up letting assets drop later when they could have sold them now for a profit.

I am moving a significant amount of longtail .net/org/us through a number of methods. Even low 2-3 figure sales of these low end assets will add up to a good 6 figure revenue stream for my companies and save me a lot of money on renewal fees while lightening my portfolio to make room for more valuable assets in the .com and ccTLD space.

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