Investing in Domains

In 1848, gold found in California sparked the Gold Rush, a dash for wealth and glory. In the 1990’s a similar gold rush played out, only this time prospectors weren’t looking for pieces of gold in the dirt—they were looking for domain names, the real estate of the web. In both of these periods, despite the hype, only the smart and the lucky actually got rich.

In the tech bubble that followed, domains registered by investors for $10 sold for millions of dollars. Yet while the hype over domain names has dampened, demand is still strong. Domains continue to sell for millions of dollars, and a select breed of digital entrepreneurs continue to make real money in this digital gold mine.

Domains are cheap so if you want to, you can hand register over 1,000 domains for less than $10,000. Would that make you happy? Would you consider yourself a “big shot domainer” if you were to own 1,000 domains? Wake up!

Most of the people who are just starting out as domain name investors make the mistake of hand registering worthless domains. For example, lots of people thought they would make it big by hand registering as many five letter domains as they could afford. Needless to say, practically all of them ended up learning a fairly expensive lesson. If you want to invest $10,000, buy a handful of domains which are actually worth it for 2 simple reasons:

a) A domain with inherent value will always be in demand
b) If you own about 1,000 domains, you’ll end up having to pay around $10,000 yearly in registration fees. If you own 10, you’ll only have to pay roughly 100 bucks per year in order to keep them all.

Once you’re ready to dive in it’s time to talk strategy. Although most generic domains (e.g. coffee.com) are taken, you might be able to register a website about a product or trend that is just getting started. New videogame systems, car models, trendy foods, and slang words all offer domain investors rich investment opportunity. For example, btc.com sold for $1 million in 2014. Someone who anticipated the Bitcoin craze could’ve picked that domain up early and made a pretty penny.

Knowledge of new industries can serve you well. Just as those who were aware of the Internet early on received some of the choicest domain real estate, so too can those aware of new trends register new domain names before the rest of the world catches on to the trend.