Is European Domain a Good Investment

Sep 8, 2019 Finance

Is European Domain a Good Investment

The European domain (.eu) is becoming increasingly popular in the USA. Many entrepreneurs often register it together with our national domain name (.pl) to emphasize the European dimension of their activities.
Almost 38% of .eu websites are dedicated to business. This is an excellent result, compared to the average percentage of business sites with extensions strictly related to commercial and business (.com, .biz and .net) amounting to only 30.5%.
“Entrepreneurs who are optimistic about their business often choose the .eu domain because the European domain indicates that a given company or brand is operating on a European scale. The .eu website is an excellent start to expanding the database of potential customers from all over Europe,”, owner of the wholesale domain name service.
European domains were admitted to public registration only in 2006. Despite less than 10 years of experience on the market, at the end of 2014 more than 3.9 million .eu domain names were maintained, of which 266,000 domains were maintained by American entities (6.81% of all .eu domain names). This is a good result, giving us a strong fifth place in the ranking of European countries registering this extension. We are ahead of the ‘old’ EU countries such as Italy, Austria, Belgium and Spain.
Despite its young age and short market presence, .eu has already managed to win the trust of its users and establish a stable brand on the Internet. The renewal rate of European domains (percentage of existing names renewed by Subscribers for subsequent years) is above 80%. For comparison, the renewal rate of American domains is about 60%. .eu continues to be one of the most popular renewals in the world.
The advantage of having a European domain is its relatively attractive renewal price. Renewal of the .eu domain in most registries means receiving a lower invoice than in the case of renewal of the .eu domain and is on average from 50 to 60 USD per year.
“Some partners participating in the domain programme offer .eu domain renewals below 30USDnetto points out.
.eu itself is also increasingly seen as a good financial investment. Unless we use it to build our own European image, selling a good .eu name on the aftermarket can be very profitable. Some generic European domain name transactions reached prices exceeding several hundred thousand Euros on domain exchanges.
European domains can be registered not only by companies or organisations, but also by private individuals. Both categories of entities should be residents of the European Union. The .eu address is also intended to be a certificate of good origin.