Are domain names recession-proof?

Writing in Fortune magazine, Paul Sloan has an interesting article titled Are domain names recession-proof? With the continuing growth in domain name sales, Sloan writes of Oak Hill Capital, a Silicon Valley private equity firm, investing $150 million investment in Oversee. The article notes it’s “the first time Oversee, with 2007 revenues of more than $200 million, has taken any outside money, and the bet shows huge confidence in the oft-misunderstood domain name industry.”The article also notes the growth in “domain name prices isn’t what’s bringing investors like Oak Hill into the business. It’s the ability a good name has to draw high quality traffic for advertisers. Domain names, often talked about as the real estate of the Web, offer an incredible profit opportunity as more of the world – and more ad money -moves online.”Paul Sloan’s article in Fortune begins:Global markets are in a state of panic. Credit markets are all but closed. And recession fears are everywhere. But at the conference I attended in Hollywood this week, called DomainFest, you’d have little clue that the financial world was melting down.The domain world – the people that buy and sell names and make money from pay-per-click ads on their websites – is booming. Downturn? Bring it on.To read the complete article in Fortune, see techland.blogs.fortune.cnn.com/2008/01/25/are-domain-names-recession-proof/

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