Domain names are hot commodities in today’s tech-centric society. Quinstreet sold the domain name ‘insure.com’ for $16million in 2009, setting a new world record. However, other domain names can be purchased for hundreds of millions daily. The result offers investors a unique opportunity to purchase domain names that could be sold for a profit. You can make money from domain name selling and buying.
Solid Domain Portfolio
It can take months to put together a quality portfolio. Often, the key is to anticipate what domains could become very popular in the future. Others opt to buy domains that have already been well-respected and hold onto them, hoping they will appreciate them.
Using words to describe a product or service can be a good investment. However, you must avoid trademark or copyright issues that could lead to domain cancellation.
Names and addresses of cities and countries, along with up-and upcoming locations, can be great investments over the long term that web developers can sell to help them build community portals or other businesses.
If combined with geographic names, generic business names (e.g. dentist, chiropractor) can be very attractive investments.
Domain Names: Selling and Buying
There are many options for Selling and Buying domain names. Many standard domain registrars will allow sales via eBay. Sedo is an exclusive website for domain name Selling and Buying. Parking domains with a page for sale is a great way to attract targeted interest from potential purchasers.
Domain sellers who have a large number of domains that they wish to sell our best to set a fixed price.
Auctions are an excellent way to sell domain names of higher importance where there is high interest.
Make an Offer
Sales of niche domains are well-suited to make an offering.
Domain Investing: The Risks
Domain investors should be mindful of many factors before purchasing or selling. The biggest risks are liquidity subjectivity and legality. However, other possible dangers exist, such as misleading appraisals and incorrect escrow payments. Before buying domain names, buyers should consider the following risks.
A broker can easily sell most stocks and bonds, but domains can be difficult to sell. Finding the right buyer cannot be easy if a sale is listed for several months or years. Therefore, investors should have a long period and the ability to accept a loss.
Stocks are valued using the future cash flow. Bonds are valued using their coupon payments and interest rates. Domains are a more subjective evaluation, which can prove difficult to determine. So-called domain appraisals are known for issuing high valuations that can prove difficult to realize.
Domain names can be tricky from a legal point of view. Names that are too close to a trademark can lead to a lawsuit and a court order for the forfeiture of the domain name. In some cases, stolen name domains can be traded before the buyer discovers that they’re not their true owner.
The Bottom Line
Domain names have their risks, just like any investment. Domain names can offer an opportunity to diversify portfolios by being a smart investment.