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Domain Name Profits… Possible?

Can you buy, hold and sell domain names (.com, .org, .today) and make money?

Yes you can. This is one of the thing I do, and I’ll explain more in later posts. Probably on my site. Basically, you have to know a little bit about how domain names come about, and their value. For example – diamond dot com sold for 7.5 Million US Dollars in 2006. Originally it cost $50/year to buy and maintain.

On the low end level, you can buy new domains for $10-50 a year and hope their value go up. It’s like real estate, really. A domain name is unique. Like a telephone number. You can also set up a website on a domain, and earn some money along the way. That makes it a lot easier to sell a domain/website. The standard value formula is about 20x monthly revenues. So if a domain/site makes $100/month, you could fairly easily sell that for $2,000 after 6-8 months of proving revenues. Then you take that money and build more sites. Rinse and repeat.

I have done this since 1999. I will give you an example of how this works. Back in 2004 I registered a .com domain name in the forex trading space. Not a bad name but nothing big either. I set up a small site and earned a few hundreds a month along the way off and on. Probably a couple of thousand all in all. I didn’t work that hard on this domain.

I reached out to the owner of the version of the domain. To them, and they market all over the world – people seeing the web address and right away think it is a UK only firm. So with the same name in a .com they will get a lot more interest from the world. Now my little domain is worth something, probably in the low 5 figures. We’ll see. They got back to me today very interested. I love what I do!

The best way is to study and select a niche, buy domains, set up small sites, and then try to sell to a retail buyer with a similar domain or a different extension. You won’t succeed on every domain, but the cost of entry is reasonable low and the payout can be substantial. it is like any other business venture. Knowledge and guts.

It is best to stay away from domain brokers – who are like any other broker – buying low and then selling to retail.

More later on this topic. It is fascinating.