Yachts and premium domains are two distinct types of high-end assets that are often viewed as symbols of success, prestige, and exclusivity. While yachts are physical assets that provide a source of entertainment and luxury, premium domains are digital assets that serve as a memorable and easily recognizable web address for businesses. Both assets require significant investment to acquire, and can provide a range of benefits, from establishing credibility and authority to offering a potential source of ROI.
In this article, we’ll have some fun comparing yachts and premium domains.
Yachts vs. Premium Domains: Comparing ROI as High-End Assets
The return on investment (ROI) for a yacht can vary widely depending on the size, age, and condition of the vessel, as well as the current market conditions. Yachts can appreciate in value over time, but their resale value is often influenced by factors such as market demand, maintenance history, and location. Typically yachts are a depreciating asset. The vast majority of own-to-charter yachts have negative ROI.
The ROI for a premium domain name can be very high, particularly for the brand that invests in the domain name. Premium domains, if chosen correctly, can provide a valuable asset for businesses, providing a memorable and easily recognisable web address for customers to find the brand online. This can translate into increased website traffic, much more effective marketing, improved brand recognition, and ultimately, increased revenue. In fact, a report by Escrow.com found that domain names can provide a higher ROI than other traditional investment options, such as stocks, bonds, and real estate. While there is potential for a premium domain name to appreciate in value over time, as investment opportunities, owning a premium domain name is most valuable as an asset for the right brand.
Yachts vs. Premium Domains: Comparing The Cost of Ownership
Yachts are physical assets that require ongoing maintenance, insurance, and operating expenses. The cost of maintaining a yacht can be significant, with expenses ranging from routine maintenance to major repairs and upgrades. According to SuperYacht Times, the average annual operating costs for a yacht can range from 10-15% of the yacht’s value.
In comparison, premium domains are digital assets that require periodic renewal fees and marketing expenses. The cost of renewing a premium .com domain name depending on the registrar is typically within the $10-$15 range per year. In addition, marketing expenses may be required to promote the website associated with the domain name.
Comparing Top 10 Yacht and Premium Domain Name Sales for 2021 and 2022
Here’s a comparison table of yachts and premium domains in terms of ROI and expenses:
|ROI||Typically yachts are a depreciating asset. The vast majority of own-to-charter yachts have negative ROI.||A high ROI as a valuable brand asset for the owning business, through increased website traffic, more effective overall marketing, improved brand recognition, and ultimately, increased revenue. As investment asset, a report by Escrow.com found that domain names can provide a higher ROI than other traditional investment options, such as stocks, bonds, and real estate.|
|Expenses||Require ongoing maintenance, insurance, and operating expenses. Average annual operating costs can range from 10-15% of the yacht’s value.||Require periodic renewal fees and marketing expenses for promotion. Renewal fees can range are typically in the $10-$15 per year range, with up to few hundred for some extensions.|
How do yachts and premium domains compare in terms of investment required to obtain one? Let’s have a look. Here is a comparison table of the top 10 yacht and premium domain name sales in 2021 and 2022.
|Year||Yacht Name||Sale Price||Premium Domain||Sale Price|
|2021||Octopus||€235 million||NFTs.com||$15 million|
|2022||Golden Odyssey||€150 million||Connect.com||$10 million|
|2021||Seven Seas||€131 million||AV.com||$4.2 million|
|2022||Elandess||€130 million||IT.com||$3.8 million|
|2021||Lady Moura||$125 million||Hippo.com||$3.3 million|
|2022||Albatross||$95 million||Christmas.com||$3.2 million|
|2021||Carinthia VII||€95 million||Floor.com||$3.2 million|
|2022||Tatoosh||€90 million||Marketing.com||$2.5 million|
|2021||Tatiana||€85 million||Forge.com||$2.2 million|
|2022||Secret||€75.8 million||AFS.com||$2 million|
|2021||Stella Maris||€75 million||NFT.com||$2 million|
|2022||Azteca||€65 million||Angel.com||$2 million|
|2021||Halo||€64 million||IS.com||$2 million|
|2022||Solo||€62.9 million||Galaxy.com||$1.8 million|
|2021||Cloud 9||€59 million||Call.com||$1.6 million|
|2022||Ventum Maris||€58 million||Chill.com||$1.6 million|
|2021||Firebird||€53.9 million||Gems.com||$1.5 million|
|2022||Skat||€49.5 million||Unlock.com||$1.2 million|
|2021||Game Changer||€49 million||Ballet.com||$1.16 million|
It turns out the average sale price of a luxury yacht on the list is $92 million and for a premium domain it is $3.26 million.
With that in mind, why do the majority of entrepreneurs see investing millions in yachts as more acceptable than investing even five or six figures in the right domain name for their business? This is likely due to their tangible nature and status symbol appeal, established history and traditional investment perception. Meanwhile, premium domains are more often seen as less necessary and require digital marketing and branding knowledge to fully benefit from.
|Type of asset||Tangible||Intangible|
|Source of benefits||Luxury and entertainment||Increased website traffic, more effective marketing, improved brand recognition|
|Level of recognition||Established part of the luxury market||May not have the same level of recognition or understanding among entrepreneurs|
|Investment perception||Traditional and established investment option||May be perceived as less of a necessity for the business|
|Level of expertise needed||Requires knowledge and expertise in maintenance and operations||Requires knowledge and expertise in digital marketing and branding|
|Return on investment (ROI)||Typically depreciating asset with negative ROI for the vast majority of own-to-charter yachts||Higher ROI than other traditional investment options, such as stocks or bonds|
|Expenses||Ongoing maintenance, insurance, and operating costs, with average annual costs of 10-15% of yacht’s value||Periodic renewal fees and marketing expenses, with renewal fees typically in the $10-$15 per year range|
Set Sail for Success
At the end of the day, who wouldn’t want to have both a luxury yacht and a premium domain name for their business? But if we had to choose just one, the ROI and expenses analysis seems to be in favor of premium domains. So why not take the plunge and invest in your business’s digital identity today? You never know, it might just lead you to your own private island one day! (…alright, you’ll need a yacht for that, well spotted:))
Premium domain names are a valuable asset for any brand. They can help you establish credibility, improve your search engine rankings, and make it easier for customers to find and remember your website. If you’re interested in learning more about how premium domain names can benefit your brand, don’t hesitate to contact us for more information.
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