Domain Investing

You can start domain investing with as little as $10-50 for hand registrations. Many successful investors began by hand-registering undervalued domains. As you gain experience and capital, you can invest in premium domains ranging from hundreds to thousands of dollars. Start small, learn the market, and scale up as your knowledge and budget grow.

Domain valuation combines multiple factors: keyword search volume and CPC, comparable sales data from NameBio, domain length and memorability, extension (.com is most valuable), brandability, and market trends. Use comparable sales as your primary guide, then adjust based on the domain's specific characteristics. Professional appraisals cost $70-300 but aren't always necessary.

Sell domains through marketplaces like Dan.com, Sedo, Afternic, or Flippa for broader exposure. List on your registrar's marketplace (like GoDaddy Auctions or Namecheap Market). Use a landing page with contact information for direct inquiries. For high-value domains ($10k+), consider working with a domain broker who has buyer networks.

Valuable domains are typically short (1-2 words), memorable, easy to spell, use .com extension, contain high-value keywords with commercial intent, are brandable, and have no hyphens or numbers. Generic terms (insurance.com) and category killers (hotels.com) command premium prices. Exact match domains for high-CPC keywords are particularly valuable.

Yes, but the market has matured. Quick flips on hand registrations are harder to find, but opportunities exist in expired domains, trending niches, and new TLDs. Focus on quality over quantity. Successful flippers today specialize in specific niches, use automated tools to find opportunities, and have deep market knowledge. Expect 6-12 month hold times rather than instant flips.

New extensions can be profitable if they align with strong industry trends. .ai domains have surged with AI interest, and .io remains popular with tech startups. However, .com still dominates in value and liquidity. Invest in new extensions only if you understand the target market deeply. Avoid generic new TLDs with limited adoption and unclear use cases.

Hold periods vary by strategy. Quick flips target 3-6 months, while long-term holds can span years waiting for the right buyer. On average, quality domains receive inquiries within 12-24 months. Consider your renewal costs vs potential sale price. If annual renewals exceed 10% of expected sale price, reconsider holding. Premium domains justify longer hold times.

When domains aren't renewed, they go through expiration, redemption, and pending delete phases before becoming available again (dropping). Drop catching services use automated systems to register valuable domains the instant they become available. Expired domain investing requires speed, technical tools, and market knowledge. Competition is fierce for premium expired domains.

Sell when you receive an offer exceeding 3-5x your annual renewal costs, unless you believe the domain will appreciate significantly. Hold domains with strong long-term potential, regular inquiries, or keywords in growing industries. Consider your portfolio's cash needs—sometimes taking a modest profit frees capital for better opportunities. Review your portfolio quarterly and cut underperformers.

Common mistakes: buying too many low-quality domains, ignoring renewal costs, overvaluing their own domains, lack of market research, following hype instead of fundamentals, poor record keeping, no clear exit strategy, and buying trademarked domains. Successful investors focus on quality over quantity, study comparable sales religiously, and maintain disciplined buying criteria.