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What is the worst enemy to domain names as an asset?

Renewals. Renewals are the worst enemy to domain names as an asset.

Take any other type of digital investment. What about Bitcoins? You buy them and store in a wallet. You expect the price to increase after a few years hold, just like you expect with domain names. But you don’t spend anything on your asset for maintenance during your hold.  So these are one time investment with zero maintenance required.

What about stocks? You buy them. There is a brokerage. You decide to hold it for a few years in hopes that you will sell them for a profit. But you don’t spend anything for maintenance during your hold years. One time investment, zero maintenance. Maybe, you have to spend a minor amount for the maintenance of the whole trading account but nothing in the way of per stock basis per year.

What about property investment? Do you spend anything major during the time you are holding the asset? No.

In the case of domain names you need to have to spend a minimum of 10 USD per domain per year. You need to maintain your portfolio year after year. You need to set aside a certain sum every year for renewals.

Why is the case different in domain names? Is there any particular reason for it to be like this? Why is a maintenance fee per domain per year is required? Why can’t it be just like these other assets? One time investment, zero maintenance or a minor maintenance fee for the whole account?

I think the reason is domain names are NOT considered as a traditional investment method. There are more end users than investors and they are spread across the world. An end user will only have a few domains with him or her and so renewals are not an issue. Plus, it presents a great business model for ICANN, the registries, the registrars, the drop catchers.

You and me who consider domain names as assets are ignored. Pay it or Drop it.

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