DomainBinge

All good and great markets have one thing in common - a reliable flow of relevant information. Without it, a market suffers from an inconsistency and unpredictability that tends to keep serious new investors at a safe distance in all but the frothiest of times. Information is an absolutely critical element for a nascent market to mature into a stable and liquid one.

Want evidence? Watch Wall Street during any given earnings season. Information flow is at its peak during the months in which most companies report quarterly earnings…and the market makes significant adjustments to stock prices during these months.

This made me chuckle a bit. The guys making money by selling text links at market price are a tad upset about the market-driven increases in the price of domain names.

Beyond the irony, the post offers a nice case study of the current domain name environment. Picking a domain is an important part of getting a new company or new project off the ground. The smart folks in the world pick smart domains, assign a value to the domain, and determine if they can buy it within the confines of their budget. This reality ensures that market prices for good and great domains will continue to increase.