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Domain Names are the Real Estate of the Internet To have a commercial presence in the offline world, you need Some land; and a building to accommodate customers, staff and stock, etc To have a commercial presence in the online world, you need a domain name; and a web site that is hosted on the domain name. Domain Names are the vacant land of the Internet. Web sites are the buildings and other improvements on the vacant land. Like offline real estate, domains can be bought, sold, leased, etc Domain Names currently cost US$9.00 per annum to maintain the registration (land taxes) Secondary market domain names values linked to ecommerce activity increases. Domain Names are also a source of High Quality Traffic Traffic is created as surfers “directly navigate” by typing in domain names to the address bar An example is typing in booksellers.com into the address bar. The surfer is looking for “book sellers” Traffic is sold to online advertisers seeking visitors to their website There is a limited supply of high quality primary traffic on the Internet (search engines, direct navigation) Revenue from domain name traffic is broadly leveraged to the online advertising industry (US $21.1 billion in 2007) The advertising revenue from the domain name industry is estimated to be US$600 to $800 million per annum (2006) |