Millions of people make a healthy living from home thanks to the world wide web. At this day in age we have millionaires of all ages and most of them got to be that way from a variety of different projects and ideas. One way some people choose to make a living online is by investing in different kinds of domain names. The process of investing in a domain is similar to the process of investing in a stock. In fact, stock investors and domain investors share allot of the same job duties and responsibilities. Both attempt to buy low and then sell high, both can make bad decisions which can cost them lots of money, and both need to have a bit of “gambler” in them. That’s because you need to be willing to take risks. Not every investment will work out, but the ones which do should always out way the ones which don’t.
So, What is a domain investor? Domain investors are people who purchase domain names without the intention of designing or developing them. Without the intention of really doing anything with them aside from storing them away until the right opportunity presents itself. Some domain investors choose to spend smaller amounts of money by simply searching and purchasing different domains that they can own for registration costs. Others who do it for a living will spend more money searching and backordering good expired domains, as well as purchasing good investment domains from other people on domain forums and auction websites.
What kinds of domain names do people invest in? This all comes down to how much money you have to spend! Guys who have been in the game for years will invest $100,000 in a domain like Avatars.com today so they can flip it two years from now for $200,000. Keep in mind, if you don’t have that kind of money you won’t be investing in those kinds of domains. Smaller investors need to focus on quality domains that aren’t in the .COM extension. As a smaller investor you might not be able to buy Avatars.com for $100,000 – But you might be able to buy Avatars.info for $1000, and then sometime down the line flip it for $5000.
How should I start investing in domains? Just like stock trading, domain investors need to look and follow trends. Yes, believe it or not there is such a thing as trends in domain investing. For example, remember how big 3D televisions became some years ago? The market on 3D type domains skyrocketed and some wide investors bought good 3D .COM domains early one. Domains like 3DPrinting.com which sold on Sedo for $33,545 back in January, 2011. Keep in mind, that domain was registered in 2003 which was long before most of America even knew that a 3D television was going to be available to the public.
What Kind of Trends are around NOW? Well, some trends never really die. For example, there is always a demand for two and three letter domains if the extension is right. Although there aren’t trends for three letter domains in exotic extensions like .SX, .LV, or even .BIZ – there is always a demand for three letter domains in the top extensions like COM, NET, and ORG. There is even a growing trend for three letter domains in India’s .IN extension because of that countries growth in technology. It’s best to join different domain forums like NamePros and join the discussion to learn about trends. Other people out there like to scope out trends and analyze things as well and these places are we they like to discuss. It’s one of the best ways to become a better domain investor!
Hopefully this post has helped you get a better idea of what domain investors really do. They don’t usually develop websites and they don’t try to focus on traffic. They focus on buying domains and holding onto them until the right buyer comes around. If you decide to begin investing in domains make sure you have a good idea of what you’re getting into. Once again, reading some of the domain forums can really help you with this!