Over the years, you have probably seen news of domain name sales worth millions and millions of dollars. CarInsurance.com for $49.7 million or VacationRentals.com for $35 million – two of the most expensive domain names ever sold. Domain investing is a portion of our industry – the domain industry. But to be successful, you have to do it right.
It is an interesting business, perhaps one you might be interested in. However, before you buy a domain name, let’s discuss everything you need to know about domain investing.
What is Domain Investing?
Put simply, domain investing is the purchase of a domain name with the plan to resell it later to the right buyer for a profit. Think of investing in real estate, except a domain is a digital asset rather than a physical one. Like real estate investing, or any type of investing, the goal is to earn a return on your asset (the domain) that is higher than what you paid for it. As an investor, you should have a keen eye for future premium domain names, patience and the gift of being good at closing sales.
The promising thing about domain investing and the industry itself, is that there are many opportunities. Domain registrations have only been around for thirty years. Although millions of domain names have been registered, they are constantly being bought, sold and created. Additionally, with the rise of ecommerce, domain names will continue to be needed.
How to be Successful in Domain Investing
Interested in investing in domains or wondering if domain investing is a good idea? Here are our tips for being successful:
Do your Research
Like most things, to be successful in domain investing, you need to do your research.
You need to understand the industry – the pricing, the different types of domains, extensions, etc. This industry is fast paced, and you need to be ready.
Be a Step Ahead
The key is finding a domain name that you believe will become popular in the future. Additionally, what names businesses and individual buyers are looking for. And acquire these names before they do.
These could be domain names that are very general, geographic related, potentially brandable words, etc.
Being creative is in tandem with being a step ahead.
As an investor, you need to have the right eye. You need to see what other people do not see. Find the potential in certain domains, and walk away from others.
Find the Right Buyer
The hard part in domain investing is finding the right buyer. There are many different options, and because each domain name is unique, every buyer will be different. Some investors sell to other investors, who are trying to build their portfolio. Investors can also sell directly to businesses or individuals who want to use it for their business branding.
How Much Money Can a Domain Investor Make?
Truthfully, only a small number of domain investors use investing as a full time job. The overall majority of investors do it on the side. This is because most domain sales are not the huge multi million dollar sale you see in articles. Domain names can sell for a few hundred, tens of thousands or hundreds of thousands. It depends on the domain. However, many domain sales are also not reported publicly.
The Bottom Line
Many people fail at this business, but at the same time, many people are very successful.
If you do your research, truly understand the market and like a constantly shifting industry – domain investing could be for you. If you play your cards right you could turn domain investing into a real money making opportunity.
Interested in Buying a Domain Name?
A domain name is essentially your street address, but online. It is how new and returning customers will find you. The easier it is to find you, the more likely customers are to return to your site.
Our team of domain brokers have years of experience in the industry. Our domain brokers are experts in domain acquisition, appraisal, branding, brand protection, portfolio management services and more. We pride ourselves in our transparency and passion to help you reach your goals. Additionally, we handle the nitty-gritty work for you.
Our mission is to help you be seen online. If you are interested in speaking with an expert from our domain brokerage service about buying a domain, please contact us for a free consultation.