10 Hard-Hitting Ideas About the Difficult Business of Domain Name Investing (Domaining)
Question: Is it really profitable to buy up domain names in hopes that someone will one day want to pay for that domain name?
Answer: If you are committed to learning, and you have a skill at choosing names that can sell, then you may become successful in this business. Nevertheless, be aware that selling domain names is a very difficult business. Here are ten ideas about “domaining” — the business of buying and selling domain names.
- Investing in domain names is similar to investing in the stock market: You could make money, or you could lose money.
- The harder you work to learn, the better chances you have of making money.
- Beware of scams. Scams in the domaining world are subtle, costly, and everywhere.
- Take advantage of the excellent resources for learning, such as Domain Sherpa (their weekly video interview), and Domain Name Journal, and Domain Name Wire.
- Expect to lose money during your first year in this business.
- To be successful in this business, you must learn the art of choosing domain names that can sell. Buy domain names about subjects that you know well, so that you will understand the importance of the domain name.
- Do not price your domain names too high, or else they will never be sold.
- Always use a reliable escrow company, it protects the seller and the buyer.
- Test the waters by buying a few good names from a domain name registrar at the original prices, and then try to sell these names at Sedo .com — which is now offering “free listings”.
- Ask yourself: “Is this the kind of work I will enjoy doing?” … If the answer is “Yes,” then you have much greater chances for success.
If you are selling a domain name, what is the most important thing you can do to tell the world that this domain name is for sale ?
What is the most important thing to do to sell your domain name ?
Tell the world that the name is available for sale, by making a web page with the essential information:
— This domain name is for sale …
— The price is …
— How to contact us …
Set up this web page so that whenever anyone enters your domain name into their web broswer — YourDomainName.com — they are taken to this web page with all the essential information about your domain name.
This article explains the financial term “escrow”, and why it is important for sellers and buyers of domain names.
In this article, the Zorba Domains team divides domain names into 6 tiers of prices, from A to F.
In future posts and pages, we will propose questions for self-evaluation, to help us all to understand the value of domain names that are not yet developed into blogs or websites.
What is the value of your domain name?
A difficult question!
Except for the rare “super names” as we call them (money .com, insurance .com, cars .com, and so on … ) — All domain names are worth whatever somebody is willing to pay for them.
It is impossible to put an objective value on a domain name that is not yet connected with a thriving blog or website.
If somebody sees your domain name, and then suddenly realizes: “This will be the perfect name for my business!” — then, to get this valuable name, they will pay as much as they can afford.
Do not price your domain name so high that it will never be purchased.
Price your domain name according to what you will be happy to get for it.
Right now, the Zorba Domains team is thinking about a price-tier system for categorizing the value of domain names, from A) through F). This is a work-in-progress, but roughly, at this time, it looks something like this:
F). First-sale Price Names … $ 10 USD and up
This is the price of domain names when purchased for the first time from a domain name registrar. For example, a .com domain name is usually priced around $12 to $ 15.
E). Enhanced Value Names — $ 20 to $ 900 USD
These names might be names sold for the first time from the registrar, or they might be re-sold by a previous owner.
D). Premium Value Names — $ 1,000 to $ 9,000 USD
The realm of (what we call) Premium Value Names are names that contain useful and popular keywords.
C). High Value Names — $ 10,000 to $ 99,000 USD
Sold in the year 2019 in this price range were the names cannabliss .com ($ 15,480), detect .com ($ 57,500), and redbarn .com ( $ 60,750).
B). Super Names — $ 100,000 to $ 999,000 USD
Names in this category include investment .com ($ 900,000), earth .com ($ 800,000), and website .com ($ 750,000) — although these names were sold so many years ago, it is not easy to estimage their value today. Recently, cryptoworld .com was sold for $ 195,000 by the domain name guru Mike Mann.
A). Million-dollar-club Names — $ 1 million USD and up
A mere million ? … The highest price ever paid for a domain name — although this amount was never reported publicly — was the 872 million dollars (not a typo) purportedly paid for cars dot com. Other shocking sales that have been publicly reported include carinsurance .com ($ 49.7 million), insurance .com ($ 35.6 million).
Developing your domain names into a thriving, high-ranking blogs or websites will make these names worth more, and make it easier for you to guess and assess their value.
Michael Pastore, Owner
Article first published 2019-mar-01 and last updated 2019-mar-01
Resources About Domain Name Value and Prices
Wikipedia — List of Most Expensive Domain Names
DN Journal YTD Sales Charts
Until the end of this year 2019, Sedo is letting everyone list their domain names without a listing fee.
Learn more at the Sedo website at https://sedo.com/
Happy New Year, 2019. Here are five ideas about domaining that we would love to see become trends.
1-) More Domain Names Will Be Sold by FSBO (For Sale By Owner)
FSBO is popular for real estate sales and car sales, but it is yet made a serious impact in the world of domain names. Why not ?
2-) Domain Names Will Be Listed for Sale with No Listing Fee
Sedo is doing it for this year, 2019. Let’s hope that this experiment works well for Sedo, and that they continue.
3-) Domain Name Selling Sites will Charge a Listing Fee or a Commission After the Sale — but Not Both.
Or give us a choice between these two options.
4-) The Industry Standard Commission for Domain Name Sales will Drop to Ten Percent.
Ten percent is a fair share.
5-) Inactive Domain Names will be Sold to Someones Who Wants to Use these Names.
There are countless excellent domain names that are not being used — they sit parked and priced too high so that they may never be sold. I call these inactive domain name– after 5 years neither living nor dead — “Zombienames”.
What can be done to encourage domain name owners to release these domains to someones who can use them to improve knowledge on the Net ?
For news, ideas and trends, connect with our Domaining Resource Guide.
Click this link to read our Domaining Resource Guide.
Our glossary of terms and ideas related to domain names is a work in progress. We will continue to update this page and add new terms, and improve the definitions of old ones.
Visit our glossary here https://zorba.domains/glossary-of-dn/
There are many resources for getting your domain name questions answered. One of the best is Quora.com, where you can ask anything about everything.
You will probably receive many answers, which will give you a wide range of facts, opinions and ideas. If your question is about Domain Names, then you might receive an answer from Michael at Zorba Domains.