Domain Name Investing - Lucrative Business

This is illustrative only and the reader should consult current statistics as required. To give you a scale of the number of TLDs (Top Level Domains), according to the September 2010 Verisign Domain Report:

The second quarter of 2010 closed with a base of more than 196.3 million domain name registrations across all Top Level Domains (TLDs), an increase of more than 3 million domain names, or 2 percent over the first quarter. Registrations grew by 12.3 million, or 7 percent over the past year.

With such a volume of domain names, even a small percentage turnover in domain name ownership amounts to a huge opportunity. There are at least two angles to making money with domain names. See Domain Name Scalping.

  1. Choose and buy domain names that will turn out to be winners in the future.
  2. Flip domain names.

Consider the purchase of a domain name for $5000. Consider holding it for a few years. Without even developing the property (i.e. no web site), a sell price of $25,000 is a realistic target. That is a net return of 400%. In two years time, the number of sites will grow beyond our imagination. With so many sites coming into existence, domain names will be needed. Holders of domain names will be able to meet the demand, with premium asking prices. The number of domains that you can hold is subject to your available capital.

Consider what might be burgeoning fields in the next few years to pick domain names. Green energy is bound to be amongst the mix. The continuing proliferation of online advertising is another field. Names with sub-phrases such as buy, sell, lawyers, accountants will be hits. And I have not mentioned non-family sensitive topical areas. As more professionals are exiting their fields, through choice or through layoffs, they will be creating web properties in their fields or otherwise.

With web site development to supplement the buy-and-hold strategy, further opportunities may be had. Consider developing an information web site to publicize your domain names. Consider writing about the relevance of the topical areas. Consider putting in advertising to garner advertising revenue. If a domain name is sold sooner rather than later, and you are happy with the return, then flip the domains. Fast turnover for lower than expected return is a reasonable tradeoff. Fast turnover for higher than expected return is a bonus.

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