In today’s digital world, domain names are hot commodities. In 2009, the sale of ‘insure.com’ to Quinstreet is about $16 million may have set the world record and even lengthier domain names are consistently sold for hundreds of dollars daily. Thus, it is clear that there are opportunities for investing in the domain names that can be sold for a profit in the future. This article will explain how to make an investment using domain names.
Developing a solid domain portfolio
In general, it can be months or years to accomplish a high-quality domain portfolio. Hedging through numbers by purchasing hundreds of domains, are often the key to looking forward makes domain may become popular in the future. Many choose to buy the profile domains which is already has a high profile. There are various ways to build solid domain names, here are some of the idea that you can take.
The generic domain names can be originated from the word or names of the domain describe a product or service, which it can be including new and emerging product can be a great investment to start with. It is advisable to check and avoid copyright or trademark issues that can result later on.
Domain names based on the Geographic location, in fact by adding names or cities or countries, including up-and-coming locations, can be a great investment over the time. This kind of domain can be sold to the web developers that look to build community portals or any business centered around the communities.
Another is by putting business names in the domain. Having generic business names, such as a doctor, therapist or chiropractor, it can be a great investment. It is specific and direct towards the business that targeted. In addition to that when it is combined with geographic names, it can be attractive for that specific region.
Lastly, you can develop the name by timely names which these domain names are related to the relevant event that occurs in that, or even upcoming years, such as 2022OlympicPlayers.com.
Buying and Selling Domain
It has many different ways to buy and to sell domain names. Firstly, you can look at is look information at the standard domain registrars, such as GoDaddy.com and they will facilitate the sales via auction. Another way is you can also check specialized websites such as Sedo and these websites are designed entirely to buy and sell domain names. Last but not least parking domains with a sale page is a great way to draw targeted interest from potential buyers. Before going further into the technicality of buying and selling, herewith some of the areas that need to be settled, such as set the price, auction and make an offer.
Setting the price is the preferred method for domain sellers that have a large portfolio of domains and not to rush in selling them. Auctions are a great way to sell higher profile domains names. This is particularly great where there is a lot of interest and in mots cases typically it results in the highest possible price. Make offer sales are well-suited for niche domains that may not have a lot of interest and/or where the precise value of the domain isn’t well known.
Within the whole business of making money through buying and selling domains, There are many risks that would-be domain investors should carefully consider before proceeding further. There is three largest risk known that entails, namely liquidity, subjectivity and legality, but there are also many other ranging from misleading appraisals to faulty escrow payments.
In term of liquidity, domain names can be much difficult to sell. It means finding the right buyer can be within several months or even years. In addition to that the domain business it has a much more subjective valuation that can be very hard to pinpoint. So-called domain appraisers are well known for issuing supercilious valuations that can be hard to realise. In term of legality, the domain names business can be a sticky business from a legal standpoint. Choosing names that are too similar to a trademarked name can result in a lawsuit. A court can order to surrender the domain name for free. In other cases, stolen domain names can be sold even before the buyer has the ability to discover that they’re not the true owner.
Like many other investments type, domain names come with their own set of risks. However, for conscientious investors who consider the risks and returns methodically, domain names can become an investment that yields high returns, and a unique way to diversify his/her portfolio of investments.