Like prime real property, the actual web address or domain name matters. Domain names, like real estate, that have a popular address always have an intrinsic built-in residual value that will continue to generate money for the years to come. Although the popularity of an address is directly related to the sale price of real estate and domain names, the value of both domain names and real property is always driven by the particular demand for real property. Both domain names and real property that are more difficult to acquire are typically appraised at a higher value than domain names and real property that are not sought after and difficult to acquire.
Another similarity between domain names and real estate is that domain names can and often do appreciate in value like real estate. It is a well-known fact that domain names and real estate can and do appreciate in value on their own over time. However, both domain names and real property can and do appreciate in value as owners of domain names and real property make improvements. For instance, the owner of a particular domain that takes the time to enhance a domain names’ Internet presence through various forms of Internet marketing and advertising is taking the steps to improve the popularity of a domain name is contributing to the appreciation of a domain name. The same is true for an owner of real property that makes improvements to a piece of real property too.
Domain names and real estate are also similar because both domain names and real estate with high recognizable names or web addresses can and often do become landmarks around the world. Owning a landmark or a highly recognizable domain name is worth gold. Once real property or a domain name has acquired landmark status, it will always be greater in value than real property or domain names that have not attained landmark status.
Another similarity between real property and domain names is that domain names, just like real property, can generate rental income. Rather than resell property, many real property investors purchase property with the goal of generating recurring rental income by renting their real property to others. Similarly, many individuals who purchase domain names do so with the goal of renting domain names to others and earning recurring monthly or annual income. Rental income from domain names has become a very popular way for owners of domain names to earn income with their domain names over the years.
Clearly, there are many things that make owning domain names like owning real property. From the popularity of the domain name and piece of real property to how a piece of real property and domain name can and do appreciate in value to the demand of a piece of real property or domain name, it is clear that owners of domain name own what is in essence virtual real property.