Domain Investing Overview
Wondering what domain investing is? Here’s an overview to get you started.
Like other types of investing, in the stock market, commodities, real estate, art, and so on, domain investing involves buying something, in this case a domain name, with the goal of subsequently selling it for a profit.
But First, What’s a Domain?
But let’s step back for a few seconds. To comprehend domain investing you must define what a domain name is and isn’t. It is NOT a website nor an email account.
Instead, it a numerical address turned into user-friendly text that is used to identify a resource on the Internet, such as a website, an email account, a hosting server, and the like. Domain names are assigned to Internet resources for the same purpose street addresses are assigned to houses, office buildings, and other real estate – so they can be found.
Domain names must conform to the rules of, and be registered in, the Domain Name System, or DNS. Every registered domain name is owned by a person or entity of some kind, such as a company, organization, or government.
The Rogue Domain Name and Domain Investing
It is possible for registered domain names to exist, but not be associated with any Internet resource. This is where the domain investor comes in.
When domain names are not utilized, their owners have the option of on-selling them in what is called the ‘domain aftermarket.’ Domain investors acquire them in the hope they will gain greater value over time.
Some domain investors also create their own entirely new domains. When they find an available name they believe will gain in value, they register it and maintain it until they feel they can on-sell if for profit.
The prices of aftermarket domain names vary widely. Determining the market value of domain names is a complex process, not unlike determining the market value of a a building, land or other real estate.
In general, memorable, short, easy-to-spell names that end in .com extensions tend to be the most valuable. But before you dive in to domain name speculation, wade around in a few good online resources.
But Can Domain Investing Be An Overnight Success?
No successful domain name investor got to where he or she is overnight. And they definitely faced a few speed bumps along the way.
Stephen Hartley just did a live webinar for fellow students of DN Academy last week where he shared all the details of a domain name flip using outbound emails that turned a $93 investment into a $1,000 sale with a few hours of work.
But he didn’t get there overnight. He studied, he practiced, he was dedicated to his investment tactics and they paid off big-time.
In that webinar I asked him how long he spends investing per day. He told me he spends about 30 minutes a day reviewing filtered domains that match his investing style.
I then texted Frank Shilling and asked him about how he got started, before he was investing full time. And you guessed it; he had a full time job doing sales, but he still managed to put in an hour before work, and three hours after work in the evening.
Then I asked the Sherpas on the show that will air on Monday, how long they practice per day.
Today here’s what Shane Cultra, Michael Crellin, Andrew Rosner said:
- “I spent two hours every day”,
- “Probably around three to four”
- “Probably four to five hours a day”
If you love branding, if you love domain name investing, if you love finding the needles in the haystack, the gems that others may have overlooked, the hours you spend every week may not seem like work at all. But make no mistake about it, there are no overnight successes in the domain name industry.
There’s a lot to know. Good luck with your domain investing!