Domain Financing versus Housing and Mortgages
A good post today by Jay Westerdal reminding us all how the availability of credit for house purchases led to an increase in the prices for homes by making them more affordable. Here is the article.
Financing options do exist for premium domains, but for small business owners insightful enough to understand the value of getting a great domain that will shape their ongoing business strategy, there is nothing. Conventional lenders are not interested, and generally lack confidence in the accepted valuation methods.Domain names have real value in business, and smart financiers will recognize this.
Interesting too to see him mention travel.com and guess that it’s worth is $50 million. I happen to own the Thai version of that, ??????????.com, and believe it’s worth to be one half of one percent of that, or $250,000. Current market price today would be more like $10,000 I think, reinforcing Jay’s point that valuations go up if good names are made more affordable.
