Domain Investing

Domain Names as an Investment – Wonderful Long Term Business Opportunity

In the middle of a rapidly changing economy, online trends and new fads, it has become possible for a person to become a self made millionaire. Granted that you have the knowledge and vision to implement key online money making strategies, which people at only a small scale have thought of, you’ll be faring quite well. 

Domain names as an investment have become a great money making opportunity. Let alone, different organizations are already registering domain names that are related to a specific product line, electronic equipment, cellular network or upcoming tablet models. 

When we specifically talk about tablets, you probably recall the supposedly 8 figure sale of www.tablet.com. This domain was owned by XF, a domain name investment company. They projected that the portable computer and tablet industry will generate revenue worth $70 billion in the upcoming time period – hence, selling Tablet Dot Com seemed to have all the right reasons to it.

Aron Meysted of XF, at the time of selling this domain name, said, “We are going to let the market determine the buying price. The growth of tablet industry is going to give leverage to the domain price.”

Getting back to the discussion, perhaps it is not a bad idea for you to buy a couple of $10 domains and showcase them for sale a few years later. Besides, in 2008, when Jeremy Shoemaker, one of the most famous affiliate marketers of all times, went to a conference, he heard a guy talking about these high ranking domains that are just lying around in cyberspace.

Believe it or not, Shoemaker bought almost 4,000 domain names at GoDaddy in one night. Was he crazy? Of course not. The man saw huge potential in this industry and registered the names for two purposes:

From an investment point of view, this much volume of domains is like a goldmine. 

Getting 301Redirects from a bunch of domains is a great keyword placement, ranking and back building strategy.

From a standalone business owner’s perspective, registering multiple domain names isn’t always about making extra money. They have to protect their company’s brand name. For instance, if you already have a few registered domain names, which coincide with an upcoming company’s product or name, there is a strong possibility that the company will pay you a heavy price for selling those domains.

However, for somethinglike this to happen, a lot of legal ground needs to be covered. In case you are in the midst of purchasing a domain name, which relates to a specific brand, company or a product, make sure that you’re not infringing any intellectual rights. 

Among several reasons, speculation surrounding ease of domain name, expected popularity, and how it will be searched by Crawlers, needs to be kept in check. Likewise, it is a matter of intense debate when it comes to using special characters in domain names. For instance, symbols and characters are a great way to make a domain name unique, but it is equally impossible for potential visitors to remember that name. 

Nonetheless, purchasing domain names of hot upcoming products is now becoming a viral trend at a secretive level. How so? Affiliate marketers are just one fragment of domain name investors who like to register names that are still hot and high in demand. These guys are known for creating a portfolio of domains, which can be used for either affiliate marketing, search engine placement, or for domain sales in later period of time. 

Path to Monetary Liquidity:

Despite of offering a unique opportunity to potential buyers, tablet domain names, or any product domain name, pose a few hindrances. Without a proper liquidation strategy, it is quite hard for domain name owners to sell their ‘assets’. Such domains, in the absence of proper marketing, easily gather virtual dust – only to be sold for a few hundred dollars in the future.

But if this business had a lot of risks, it wouldn’t have become so popular these days. To protect yourself from any possible monetary injuries, it is best that you talk to an expert before making any moves. It is good to have few domain names, rather than owning a bunch of domains without any sales potential. 

Last but not the least, domain registrars, such as GoDaddy and Sedo have joined hands to make it easier for their clients to auction their domains. Sedo, NameCheap and many other companies have one of the largest databases of different domain names. 

As they say, “Make hay while the sun shines’; what is your modus operandi concerning the crux of this article?