Domain Investing

Domain investing has been around since the dawn of the internet but is a consistently overlooked and underutilized asset class. Millions of people use the internet daily - most of them have no idea what the web is built upon, nor do they care about the money that can be made each day from investing.

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What Are Domain Investments?

What is domain investing

What is domain investing? Domain names are a form of digital asset, and domain investing is a way to invest in the internet. Domain investing is like any other kind of investment: there are costs associated with owning domains and managing them properly, as well as potential rewards when selling them at a profit. However, unlike stocks or bonds, the profit potential for domain names varies widely depending on their quality and market demand.

Domain investment can be broken down into two categories and depends entirely on the profile of the investor; some investors are interested in a short turnaround, trading, or domain flipping. Others are in it for long-term holding; this is where you purchase a domain name with no plans to sell in the near future. We can facilitate all options at Domainer.com and develop an investment strategy that works for you.

Why Invest in Domains?

You might be surprised to learn that domain names can be an effective investment. Domain names are a form of intellectual property, which means they can be sold and traded like stocks and other financial assets. The domain name market has existed for decades, but it's only recently gained widespread recognition as an alternative asset class. That's because the internet has become an integral part of our daily lives and businesses across the globe rely on it for their operations — and therefore their survival.

So, why invest in domains?

You can earn passive income from investing in domain names

It’s a good way to diversify your portfolio

It’s a great way to shore up your financial future

Domain investors can benefit from this trend by investing in individual domains or portfolios of domains with high potential value as a result of their popularity or low supply. You might also want to invest in domain names as a way of diversifying your portfolio. Domain names are not correlated with the stock market or real estate market, so they're less likely to experience volatility. This makes them ideal for those who want stability while still increasing their wealth over time.

The other question Domainer.com gets asked is why invest in a premium domain? Premium names are becoming more valuable because they’re easy to remember, and often include keywords that people search for on Google or Bing, and most importantly, because they're hard to find and becoming ever scarcer.

Compare Assets

When we talk about how to invest in domain names, it is best to follow the “Investment Risk Pyramid” rules and invest 10-30% in high-risk assets, 20-30% in medium, and 50-60% in low. It’s good to have assets not only in high-risk investments like NFTs and Crypto, but also to invest in something more stable like domains to ensure you have good diversification.

The 20-25-55 Investment Risk Pyramid

Compared to other assets, domain names are a low-risk investment. The returns on domains can range from medium to high depending on the popularity of the domain and how much work has gone into optimizing its performance. Domain names are considered as an alternative asset class by some investors because they're difficult to value and don't have a fixed price like stocks or bonds do.

Below you can see a simple breakdown comparison of domains against the most common types of investments.

The 20-25-55 Investment Risk Pyramid
Type of AssetVariabilityLong/Short TermRiskReward
DomainStableLong/ShortLowMedium
StocksStableLongLowLow
BondsStableLongLowLow
CryptoVolatileLong/ShortHighHigh
NFTVolatileLong/ShortHighHigh

Domain investing is an excellent way for you secure your financial future and make money online at the same time, especially if you already own some good domains that have traffic and revenue coming into them every day. To see how you can start investing in domains or make the most out of your current assets, contact our lead domain broker for a free consultation.

Profit from Investing in Domain Names

Domain names are an asset; they can be a short or long-term investment. The main domain investing profits you’ll get from owning domains include:

Domain Name Valuation Icon
Domain Name Valuation
Values for domain names have continued to rise since the early 2000s and are expected to continue growing as more people move online. Domain investors make money when the domains they own appreciate in value, so it's important to know how much your domains are worth before deciding whether or not you should sell them.
Cash Flow Icon
Cash Flow
Many people successful in domain name investing can earn passive income from their portfolios on a monthly basis or even a daily basis. This is especially true if you own both popular generic terms, which can generate lots of traffic every day through Google AdSense ads displayed on search engine results pages (SERPs). Creating affiliate pages does not in any way reduce the value of your domain; it can in fact, increase it by directing more potential buyers to your page.

How to Invest in Domain Names?

There are several methods of how to invest in domain names, but the easiest way is through a domain broker who connects buyers with sellers directly. Just like a stockbroker, a domain name broker takes the guesswork out of the process and can facilitate smooth and time-saving transactions. Domainer.com has a huge network and can help streamline the process: if you find something on your own and want it bought or sold quickly, using our services will be worth it for the peace of mind we provide.

We work one-on-one with our clients to ensure we have a tailored plan for you and your investments; best of all, our first consultation is absolutely free! Book in with us today.

Types of Domain Name Investment

There are many types of domain investing, three of which we will discuss here; domain flipping, which is the practice of buying a domain name, then reselling it for profit. Buying expired domains, which can be drastically undervalued on the market. And Web3.0 domains, which are the next generation of websites and have exploded in popularity more recently.

Domain Flipping

What Does It Mean to Flip a Domain?

Domain flipping is the process of buying and selling domain names quickly. The term “flipping” refers to how efficiently you can turn around a domain name investment, selling it for a profit. This has become a popular way to make money on the internet due to its low barrier of entry and relatively high returns. You can sell domains either directly through an auction site like Flippa or Sedo or on your own site via an automated auction system. Domain names can be bought and sold on marketplaces like other assets, so domain investors are always on the lookout for opportunities to acquire great domains for cheap.

It's important to note that when we're talking about domain flipping that we're not talking about buying domains that have already been registered by someone else and then reselling them as if they were brand new (that's called "resale"). Instead, we're referring only to domains that are available for registration through various registrars.

Expired Domains

What Can I Do With An Expired Domain

Why would you want to purchase an expired domain? After all, it's not like you can use it for anything, right? Well, the beauty of buying expired domains is that they're available for sale and often at a very low cost. But there are several reasons why expired domain investing could be worth it for you:

  • Domain names are intellectual property. They're like real estate in that they have intrinsic value by virtue of being hard to obtain, which makes them valuable assets once they're yours. You can sell or license them as needed to maximize profits and get more bang out of every buck spent on acquiring a new name.
  • It's easy to resell an expired domain if things don't work out with your original plan (like getting into the business or marketing yourself as the owner). If someone else wants what you've got—and if they have cash—then selling off the name will enable you both to walk away happy with no hard feelings (and no more invoices).
  • Monetizing an expired URL isn't difficult either; there are plenty of ways online businesses make money using site content without having any active business themselves (we'll talk about this later).

Web3 Domains

The Staggering Rise in Popularity of WEB3 Domains

Web3 domains are very popular in the domain industry, and they allow you to create a website that is decentralized and secure and are often seen directly as ‘crypto domain investing’. Web3 websites can be used for many different things, including:

  • Online wallets to store cryptocurrencies
  • Decentralized exchanges to trade cryptocurrency
  • Crypto communities where people can discuss crypto-related topics

The popularity of Web3 domains has increased dramatically over the last few years. This is due to their growing use of blockchain technology and cryptocurrency, as well as their potential for creating new revenue streams for owners who have invested in them effectively. You're not going to see web3 domains showing up too often on any major search engines like Google or Bing because there aren't many businesses that are using them yet - but this doesn't mean there isn't money being made from these types of sites!

Conclusion

Domain names are a unique asset; they can generate cash flow, appreciate in value over time and provide access to alternative sources of capital with attractive rates of return. At Domainer.com, we are committed to providing our clients with a premium and personalized service. The best way to begin your investing journey is to reach out to our lead broker, Ian Garner,for an obligation-free consultation.

Frequently Asked Questions

These are some of the questions we get asked most often about domain names as an investment.

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Domainer.com offers information about domain investing, but not personal advice. You should obtain advice from a qualified expert before making any investment decision. Please read this page before proceeding.