How to make money with domain names
Technology dominates today’s world, which makes domain names a hot commodity. Even longer domain names are routinely sold for hundreds of dollars each day. Quinstreet sold ‘insure.com’ for $16 million in 2009; it may serve as the world record, but longer domain names are routinely sold for hundreds of dollars. Here’s How to make money with domain names.
As a result, domain name investors have an opportunity to invest in domain names that can be resold for a profit later.
How to Build a Strong Domain Portfolio
You may need to dedicate months or years to building a high-quality domain portfolio. The key is to anticipate future trends and buy many domains in anticipation of these domains becoming popular in the future. Many people opt to buy a few domains already associated with high profile, hoping that their value will rise over time.
Generic name generation
Keywords that describe a new or emerging product, such as a new or emerging product, can be a great investment. There are still several things you should do to avoid copyright issues or trademark infringements that might result in domain forfeiture.
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Make sure the domain name is geographic
City and country names, including those of up-and-coming regions, can be valuable investments over the long term, which can be marketed to web developers looking to build community portals or other businesses around those areas.
Business Names
Combining generic business names with geographic names can be a great investment, for instance dentist or chiropractor.
Timely Names
A timely name like sidehustlehelp.com is a great investment if it corresponds with side hustles in the year.
How to Buy and Sell Domain Names
Buying and selling domain names can be done in many ways. A lot of standard domain registrars, such as GoDaddy.com, offer auctions for the sale of domain names. A special website, such as Sedo, is dedicated to buying and selling domain names. Last but not least, parking domains with a for sale page is an excellent method for attracting targeted interest.
Price it right
For domain sellers who have a large portfolio and don’t need to sell them right away, setting a specific price is the best option.
Bid at auction
It is a great idea to use auctions to sell domain names with a high profile if a lot of people are interested, as they lead to the highest possible price.
Make a bid!
Making an offer sales are ideal for niche domains that may not have a lot of interest or for domains with an unknown value.
Domain investing involves risks.
There are many risks that would-be domain investors should carefully consider before buying and selling. However, there are many other risks, from misled appraisals to faulty escrow payments. The three biggest financial risks are liquidity, subjectivity, and legality. Before buying a domain name, prospective buyers should be aware of these potential risks.
Instability
Domain names are much more difficult to sell than stocks and bonds, which you can usually buy and sell through a broker. A long time horizon and the ability to stomach a loss are essential for investors who find the right buyer for a sale after listing it for a few months or even years.
Subjectivity
Bonds and stocks can be valued based on coupon payments and interest rates, while stocks can be valued by the discounted value of future cash flows. It is much harder to pinpoint the value of domains because they are much more subjective. These so-called domain appraisers are notorious for valuing properties at lofty levels that are difficult to reach.
Legitimacy
It is often difficult to register a domain name legally. It is possible to be sued and have your domain name forfeited if you choose a name too close to a trademark. Domain names that have been stolen can also be sold before the buyer discovers they are not the owner.
Conclusion
When you invest in domain names, you do so at your own risk. Domain names can be a great investment for diligent investors who carefully weigh the risks and returns. Domain names are also a unique way to diversify a portfolio if they consider the risks and returns thoroughly.
