What is online domain name selling?
Before we talk about that, a domain name is like an online property. They are just like your physical real estate except that it is being replaced by virtual property.
Like a real estate, domain names can be bought and sold for profit, generate residual income, and be developed to increase their value.
How do you then profit from investing in domain names? Just like any investment, there is no easy path.
1) Build A Solid Top Level Domain NameMost novice domain investors make a mistake by buying as many domains as they can thinking they can profit from selling them. In domain investing, it is not always a number game.
If you have 1,000 domains but of low quality, do you think that there will be demand for your domains?
Building a top-level domain (TLD) portfolio can take months or years to accomplish.
Often, the key is looking forward to what domains may become popular in the future and hedging through numbers by purchasing hundreds of domains.
Others choose to purchase a few high profile domains and sit on them hoping that they appreciate in value.
2) Understand The MarketSimilar to stock investing, you need to understand the market. Building an understanding of the value of a domain name and how it affects your goals and risk tolerance form part of the process.
Certain assumptions about risk and value can be made when considering the TLD itself.
Domains ending in the .com TLD have demonstrated a potentially higher return and better performance in the secondary market, representing a potentially lower risk domain name investment.
3) Domain Name With ValueThe price that the end user is wiling to pay depends very much on how much value the domain name is able to give to the payer.
Just imagine you are able to buy a property that is near to a good university, a subway station and entertainment mall at a fair price, would you want it?
4) Determine The PriceOnce you have a name in mind, how do you know if the price is fair?
You can make use of a site like a namebio.com to compare the domain you are thinking about buying with similar domains that have been sold.
You can enter the keyword and also use some advance search features to see a list of names similar to yours, what prices they actually have been sold for, and when they got sold.
5) Buying Domain And Selling To End UsersYou can buy lots of amazing domains that are cheap through domain name auctions and sell them for 10-20 times more to end users.
Another way for investors to make money from domains is to buy them through auctions and sell them to end users. This is a strategy that works for quite a few people but, getting the domain you want is not always the case.
There is a world of opportunity out there in domain investment. Like any investment, domain names come with their own set of risks. Diligent investors must consider the risks and returns thoroughly before investing money into it.