Invest in Domain Names

Domain Investing Tips

Domain investing involves many different techniques, ideally crafted toward your investment goals and risk tolerance. You probably have your own niche, custom approach but how do you keep up-to-date with all the different techniques? To aid in optimizing your own strategy, various resources on domain investing as well as tools can help your domain acquisition and investment techniques.

Domainers investing in domain names

Set Goals to Inform a Strategy

Everyone wants to make money. But having focused, specific goals can help direct your activities as well as indicate when you’ve achieved your goals. Are you looking for a short-term (and potentially smaller) gain, or are you looking to take advantage of a trend for a potentially larger gain over a longer time period? Setting your expectations on the amount of your investment, return on investment and preparing for possible contingencies can help define your “entry” and “exit” strategy for your investment in a domain name and drive you to success.

Translate your strategy into a domain purchase and investing plan

Here are some considerations as you formulate or refresh your plan:

Learning from domain investors

Learn from other investors.

There are a number of investors who will share their experience and knowledge. You may have your own strategy, but the knowledge others can impart about various monetization strategies can be critical in optimizing or augmenting your own approach.

Keep up with the industry and popular trends.

News stories, popular culture trends, and industry trends are events that can trigger a rush in domain name purchases. To stay abreast of key events, there are a number of industry publications, feeds, tickers and other resources that can help you find and analyze relevant and timely domain names. Many tools can help you analyze a domain name’s potential traffic and keyword competition, narrow on your "niche" trend and help provide functionality to notify you in real time.

Choosing top-level domains

Choose proven top-level domains (TLDs).

Conventional wisdom in the industry is that proven TLDs, such as .com, represent a low risk investment with the highest average sale in the secondary market according to Sedo, which describes its domain marketplace as the most active in the industry. And contrary to some claims, there are still plenty of opportunities to invest in, and profit from, .com domain names.

Previously registered names can offer great value.

Sometimes the greatest finds are names that could be sources of traffic, such as previously registered domain names that have recently expired. There are tools that can help you find a domain name days before it’s back on the market. Timeliness is critical so you can register your preferred choices before others. Many of these names may have been registered by an individual, business, etc. and could have traffic although the website no longer exists. For instance, Verisign data shows that 108 million .com names that were once registered are available now. Use information and knowledge about the market to help you vet and validate these opportunities.

Trademark Domain Names.

Some strategies can prove to be costly and registering domain names containing a trademark or even a word that is close to a trademarked word, such as typosquatting, can have legal implications. As you search for domain names of significance, it is important to understand the trademark laws and the elements of trademark infringement actions and the dispute procedures in the domain name industry including the Uniform Domain-Name Dispute-Resolution Policy (UDRP) and the Uniform Rapid Suspension (URS) process. Remember, parties can file a claim against registrants who register domain names that contain trademarks or words that are close to, or confusingly similar to, trademarks.