Domain investing shares a number of similarities with other forms of investment, such as investing in real estate or the stock market. All of these types of investments are about finding something that will increase in value and which can therefore be resold in the future for a profit.
A domain investment can provide two types of income. First, it can produce parking revenue while it remains in your possession, for example by placing adverts on the site to make use of incoming traffic. This is similar to the dividends, which a stock may produce, or to renting out an investment property. Secondly, it is possible to make a profit by reselling a name, either to another investor or to someone who wants to develop a website for that domain. This is the same as selling your stocks or investment property.
An ideal investment should have the potential to produce both types of profit. You should consider both the current and future value of a particular domain before you buy it. A good name should be able to produce some parking revenue and get some incoming traffic. It should also show some potential to increase in value over time in order to sell it for a profit in the future. A domain with high current traffic and a high resale potential will make the best investment. However, it is also possible to make a significant profit by choosing a domain that currently has low traffic. It could be potentially a good brand name for an online business or become a desirable website name in the future.
Choosing a high quality name is the most important part of domain investing. It is far better to choose one quality name rather than to invest in hundreds of different domains that will be difficult to sell and which will cost you an annual registration fee to retain.
A domain name is the address of a website and it plays an important role in shaping the site’s identity. A good name can be a valuable commodity since it will attract large numbers of visitors. It is a good idea to choose meaningful domain names that include correctly spelled keywords. Generic names can be valuable, but if you can come up with an attractive brand name, then it may also prove to be a good investment in the future. The com extension is usually the most valuable, although other types of domain extensions, such as net, org, co.uk, de, eu can also make a profitable investment.
Starting out in domain investing can be very easy and also be a very cheap way of investing your money. All you need to do is register a name for a domain with a reputable registrar. You can invent your own new name or find one that has previously been registered. Lists of expired domain names can be a useful source of domain names that are not currently in use, while it is also possible to buy domains from the current owners. Some people auction off their domain names but you can also get in touch with the owner directly in order to make an offer. Although buying a registered domain is more expensive, it can still be possible to make a profit when you resell it.
As well as choosing your domain names carefully, it is important to know when to sell your domains. When and to whom you choose to sell your name will determine how much of a profit you can make.