Getting Started in Domain Investing

Everyone is waiting for the real estate market to improve. Flipping houses used to be a popular investment strategy. For those who have the funds, there are plenty of foreclosures on the market to choose from. But, for those who want to sell their homes, they are forced to wait until the market improves. Some would lose money on their homes if they sold right now. Because of the stagnant real estate market and no indication things will improve in the near future, more and more people have been turning to buying and selling domains as a way to invest their money. The returns are much higher yielding than CDs, money market accounts and mutual funds.

If you’re serious about going about domain investing properly, you’ll want to work with a domain broker. A domain broker can keep an eye out for expiring domains which are the least expensive and get grabbed up quickly. You can also tell your broker what types of domains you want to invest in, your budget, etc.

Many domain brokers work with domain listing companies. They see tons of new domains for sale come in every day and they know how to spot the good buys. They will facilitate the purchase of your domain and when you are ready to sell, they can find you buyers. The domain listing service offers the best way to encourage bids on your domain, but the broker maintains contacts looking for particular types of domains, so the broker can present your domain to interested parties.

Whether or not you choose to work with a domain name broker, before you jump into the game, it’s wise to educate yourself. Learning what to pay for domains and where to sell them at is the key to turning them over. Newbies can have a difficult time figuring out what to pay. If you look into the recent sales of domains sold that are similar to the one you are interested in, you can determine a reasonable price range in which to make an offer. If you don’t understand the value of domains, you will miss out on the bids every time. You also have to be prepared to deal with sellers who are equally uneducated. Some may inflate their prices and have very unrealistic expectations.

Whether you are the buyer or the seller, a domain appraisal is an important piece of information to support whether you should pay a price or demand a certain price for your domain. If a domain for sale is supported by a professional appraisal, you’ll know where your bid should be at. If a domain you are selling is supported by a domain appraisal, you’re more likely to receive bids close to the domain value.

However you choose to go about it, the first step is learning the ropes. You might want to buy less expensive domains in the beginning until you become more experienced.

Leave a Comment