SOURCE: DomainConsultant.com

DomainConsultant.com

February 26, 2009 16:34 ET

DomainConsultant.com: Internet Addresses Flourish in Aftermarket

Despite Economic Downturn, Recent Sales and Credit Flow Reveal Stability

MINNEAPOLIS, MN--(Marketwire - February 26, 2009) - For most people, in most industries, the news these days is a steady stream of depression, recession and gloom -- but not so for those in the now multi-billion dollar domain name aftermarket, reports www.DomainConsultant.com.

A recent study of the industry shows ongoing expansion, continuing credit flow and an aftermarket selling inventory at record rates.

"Doesn't sound like housing, that's for sure," remarks DomainConsultant.com analyst Mike Fiol. "In fact, the domain name industry currently looks nothing like the rest of the economy."

As evidence, he points to recent public sales including Fly.com for $1.75 million, Toys.com for $1.25 million, $400,000 each for Forums.com and Dollars.com plus Voodoo.com for $300,000. All while unreported sales the company is privy to suggests many more seven figure transactions have taken place behind the scenes.

"The Internet is the leading edge of globalization," cites Fiol as one potential reason and 'youth' as another. "True, it's not a baby anymore but it's still just a toddler," he notes, citing online advertising's still small piece of the global ad pie.

For further proof of domain's viability as investment vehicle, he points to the growth and stability of financing firms like Domain Capital that have lent out millions for domain purchases but do not have the defaults or red ink on their books.

"While banks are dealing with defaults -- we found these firms have had very few over the last 12 months," says DC data analyst, Adam Strong. "In fact, they are still lending large amounts of capital for acquisitions."

Still, analysts like Strong and Fiol do see the effect of the economy. "There is no doubt prices are depressed but the reasoning is skepticism in the overall economy -- not in the commodity itself," says Fiol.

"Just means it's the right time to buy," adds Strong, who also runs the domain industry publication, www.DomainNameNews.com. "If there was any moment to jump into this industry, it is now."

"We think your money is safer here," concludes Fiol with the smile of someone playing the harbinger of rare, good news. "And we have the data to prove it."

DomainConsultant.com is a 'success collective' made up of the brightest and best the domain name industry has produced. For more information, visit DomainConsultant.com

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