Investing in domains for profit

Investing in domains for profit

Have you ever thought of (or tried) investing in domains? Well, if you haven’t yet, you better begin considering venturing into this lucrative business. When it comes to domains, their value increases as the website behind them records more economic activity and marketing. Indeed, most investors are able to double their money in a very short time.

Want to begin a domain buying/selling business? Here are important tips you need to consider:

1. Educate yourself about domaining

Of, course, you don’t want to stumble along the way just because you didn’t educate yourself properly regarding various key aspects of this business. So if you want to become a successful domainer, begin by educating yourself. Take your time to read about various aspects of domains and perhaps even attend seminars and conferences to link up with like-minded persons or professionals. This will give you an opportunity to learn about the ins and outs of this business.

2. Only deal in .COM domains for a start

More than ever, there are numerous top-level extensions from which domainers can choose. However, when starting out, what you perhaps know about more is the .com domains and maybe other common ones such as .net, .org, .biz, etc. It is important to understand that each of these extensions come with their specific opportunities and pitfalls.
Thankfully for you, the .com has a proven track record of being more stable in terms of returns.
As such, consider dealing with only the .com domains when starting out since they are safer to manage. You can always branch to other extensions as you get more accustomed to the market.

3. Go for a domainer-friendly registrar

If you’re keen enough, you might be aware of the huge numbers of domain registrars that are generally insecure. So, take your time to get reviews of a few top registrars to ensure that your preferred option matches your security and convenience standards.

4. Choose “trendy” domains

One of your goals as a domainer is to ensure that the domains you buy contain terms that are searched regularly and are possibly part of every day’s conversations. Work.com is such ideal example of this. Look for cheaper two or three worded terms that are being searched actively by your target group.

5. Educate yourself on domain valuation

You are in a business and thus need to know how your competition is doing including its pricing strategy. As such, try to research about how various reported domain sales were completed to get an idea of how to price yours.

6. Be cognizant of relevant regulations

Over the years, various jurisdictions and regulatory bodies have formulated laws and rules that domainers need to follow when transacting domain deals and many other related aspects. To begin, try to play safe by avoiding trademarks since doing so will often land you into trouble later on. It is important to mention that large corporations tend to make strange claims when it comes to listing what is covered by their trademarks. This is why you will need to educate well yourself so you’re not subjected to cyber bullying during such incidences.

7. Test the waters first

Just like any investment, it is important to begin small in this business where you can start by selling a few domains to get an idea of the buying/selling process. This will equip you with vital skills of the trade such as negotiating, insights on which domains sells faster/slower, and various mechanics of escrow in domain transfers. Getting involved in the domaining process will give you a reality check and help you make more informed decisions on whether the business is appropriate for you or not.

8. Understand the terms “Wholesale” and “Retail” in domaining

Simply put, wholesale is a term used to describe the price paid by a domainer for a particular domain. On the other hand, retail price is the amount paid by a person seeking to develop a domain (popularly referred to as the “enduser”) to the domainer. It is important to look for domains that are easy to sell. Otherwise, it may take you months or even years before you can find an enduser who is interested in your offering.

9. Stick to a particular niche

Of course, you don’t want to be a Jack of all trades especially when starting out. As such, narrow down the list of niches in which you’d like to trade your domains. This will help you become an expert in your chosen specialties in no time.

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