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Factors to consider before investing in domain names
Did you know domains can prove to be valuable investments, if chosen correctly? There are many domain investors across the globe who initially secured a niche domain name cheaply, eventually selling them at a higher price.
Your next million dollars investment
The most glamorous example would be the owners of ‘Insure.com’. This particular domain was kept under their possession until 2009, when they sold it to Quinstreet for a whopping US$16 million. While it is recommended not to expect similar prices for your domain, decent profit can easily be made flipping domain names. Other examples of million dollar domains are Power.com (US$1.2 million), eBet.com (US$1.35 million), Cameras.com (US$1.5 million), Russia.com (US$1.5 million), only to name a few. You can get hold of affordable low cost domain names London, UK that you may like investing in.
Names that matter the most
While it’s easier to start with one domain name, over time you can successfully build a portfolio of worthy domains. Before stepping into the game of domain investing, you may want to keep certain things in mind. You can secure names of places, objects, pets, services, etc. and wait until you get a lucrative offer. Names of places, professions, events, etc. can pay you higher returns than long tail domain names. For example, CricketWorldCup2019.com, DentistsInLondon.com, Antarctica.com, etc. can be a great way to start your investing portfolio. If you are on a tight budget, opt for our services. We are specialists in affordable web hosting in Hampstead.
The process of trade
Selling a domain is easier said than done. In order to find potential buyers, you may choose to list your domain in a marketplace with a ‘For Sale’ tag. Auctions are also reliable places to secure your first sale. Like most investment tools, there are certain risks associated with the business of flipping domains. They are listed below:
Lack of Liquidity
Domains can take a long time before appreciating in value. ‘Insure.com’ was sold after 14 years of initial purchase. Depending on the subject matter of your domain, it might take longer or shorter period to sell. It takes rock-solid patience and an appetite for risk, to score big in the game of domain investing.
Lawsuits
There are certain domain names that match with copyrighted names. Avoid choosing something that you do not own. For example, choosing ‘ICCCricketWorldCup.com’ will lead to a legal hassle, because the name is trademarked by the International Cricket Council (ICC).
It would be wise to approach domain investing with an open mind, rather than rushing for glory.
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