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Domain Investing: What You Need To Know(Part 1)

I believe we are all familiar with real estate investing and property investing but have you ever heard of Domain investing? Domain investing is similar to real estate and property investing but the only major difference is that domain investing deals with digital property while real estate and property investing deals with physical property like land. Domain investing has become a popular business over the years and it’s being done by people over the world. Without further delay, let’s expound more on this and how you can start.

What Is Domain Investing??

Firstly, before getting into this, it’s important to understand what a domain name is. A domain name is simply the name of your website. It is your online address and it is what your visitors will use to find you on the internet. Just like the way you can give out your home address so that someone can find where you live, your domain name is your website’s address. Your domain name is unique to you and once you register it in the domain name system (DNS) no one else can register the same name. An example of a domain name is

When we talk about domain investing also known as domaining, this is where you buy a domain name then sell it for more than you bought it for. Once a domain investor finds a domain name that meets his/her investing criteria, he or she buys the name then sells it to other domain investors or anyone who wants to use the name for their website. Also, there are some registered domain names that exist but are not associated with a company/institution or are just not in use. The owner of the names has the option of selling them to domain investors and these investors hope that the name will gain value over time. 

What You Should Know About Domain Investing

Before you start investing, there are some few things you should keep in mind.

  • Its takes Time⌛ and Money?

Before you start buying or selling it’s important to learn first. Most of your time will go into researching be it reading guides, watching videos by domainsherpa or reading publications like written by fellow pro investors. It’s important for you to enter into this business strong by having the necessary knowledge and skill which in the end will help you make informed decisions. Also the more research you do the more money you are likely to save. As for money, avoid going on a domain shopping spree. This is a mistake most people make. Come up with a budget that will not cause you financial strain. Get to understand the different investing strategies as they will dictate your spending. Choose one that will fit the budget you have in mind.

  • Budget for the renewal fees

Renewal fees are an expense you should keep in mind when purchasing domain names. TLDs have varying renewal costs. Top Level Domains (TLDs) is the last part of a domain name eg The “.com” is the TLD. There are other different top level domains such as “.NET” “.org” “.au” “.Edu” etc. Check each of their renewal rates online.

  • Polish your negotiation skills

If you are buying, it’s important to establish the maximum amount of money you are willing to spend and if you are selling, the minimum amount you are willing to sell for in order to make sound negotiating deals. Get to learn about the negotiation process and strategies you can use to avoid making rash decisions which will cost you in the end.

What Can Make A Domain Name Valuable?

Predicting and evaluating the value of a domain name requires a lot of practice and knowledge. A domain name may be more valuable to one person than another hence why deciding on a price can be challenging. Here are some determining factors that may indicate a domain names value.

  • Domain Names with keywords

Domain names with keywords that will most likely be searched by an audience, increases the value of the domain name. Such domain names are attractive especially to SEO marketers. This doesn’t mean you should now fill your domain name with keywords.

  • Memorable Domain Names

The more memorable the domain name is, the higher the value it will be. Making your domain name memorable makes it easy for the audience to type it out in the search engine. This is one way to ensure that you get ahead of your competitors as well. 

  • Length of Domain Name

Short domain names are preferred as they are more memorable and marketable. As much you should try to make your domain name short, ensure it is clear and makes sense. By keeping it short you also avoid making careless spelling mistakes which may redirect one to a different site.

  • Domain Name History

Try find out more about a domain name and its previous content before purchasing. You could be purchasing a domain that had a lot of controversial information and data which will put off buyers

  • Top Level Domains (TLDs)

Domain names with “.com” at the end are mostly preferred by buyers because they are common and easily recognized.

In the next article, we will discuss buying and selling domains, types of domain investing strategies and what to be wary of when investing. In the meantime check out our hosting services.