Domain Investing: Buying & Selling
Domain investing, or "domaining," is the practice of acquiring domain names as an investment to be sold later for profit. Like real estate, it's about location, scarcity, and value.
📖 20 min read
What Makes a Domain Valuable?
- Length: Shorter is better. 2-3 letter .coms are extremely rare and valuable.
- Keywords: High search volume terms (e.g.,
insurance.com) have inherent traffic value. - Extension: .com is king. Other TLDs (.io, .ai) have niches but lesser general value.
- Brandability: Pronounceable, unique names (like Google or Uber).
- Age: Older domains are often perceived as more authoritative.
Acquisition Strategies
1. Hand Registration
Registering available domains at standard fees ($10-15). Hardest to find value today, but possible with new trends.
2. The Aftermarket
Buying from other investors on platforms like Sedo, Flippa, or Dan.com.
3. Expired Domains
Catching domains as they drop (see renewal lifecycle). Services like DropCatch or SnapNames specialize in this.
Valuation Tools
Automated appraisal tools (GoDaddy Appraisal, Estibot) give rough estimates, but true value is subjective. Comparable sales ("comps") from sites like NameBio are the most reliable metric.
Selling Your Domains
Listing effectively is key. Use "For Sale" landing pages, set fixed prices for faster sales (BIN - Buy It Now), and list on multiple marketplaces for exposure.