Buying a domain name can only take a few minutes. You come up with a name and register it by paying only $10-$12, depending on the registrar, but if you bought the domain name to sell it, then the real game begins because selling a domain name is not easy, and it doesn’t happen overnight.
Buying a domain name for a few hundred dollars and hoping to sell it for four figures or even six-seven figures range what most domain investors think of, especially newbies, but only a few succeed. Why? Because not every domain sells for such a price, and not every buyer pays that much money.
So sharing a few tips on buying domain names correctly to make some money in the digital real estate world.
Extension Of The Domain
Most domain sales happen in the dotcom extension, and dotcom is like a US dollar accepted in every country. Dotcom is the most popular web extension globally, so IMO the first rule of domain investing is to go where the money is and, most importantly, go where you can get constant sales, so it is always a good idea to invest your money in the dotcom.
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Now, you must be wondering, “Oh, all the good domains are already taken, so what do I buy or register? That’s not true; there are still countless opportunities in the domain industry. I can share my example. I started investing in domains in 2020, and in the first year of my domaining journey, I was able to sell more than 100 domains by reaching out to potential buyers by sending cold emails.
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Also, thousands of domains expire every day, and by doing some research, I’m sure you can find some nuggets. You can use expireddomains.net to find these expired domains.
Domain Length
The length of the domain matters a lot; the shorter is better. All the single-word domains (dictionary words) have already been developed or are for sale but with a very high asking price.
So buying those domains on an investor level won’t be a good investment strategy, especially if you are on a limited budget and new to the domain industry. You can also invest in brandable made-up names, but that’s not everyone’s cup of tea. IMO the next best option is a two-three words domain combo.
IMO A good two-three word sellable domain name should be meaningful, pronounceable, and marketable.
Insurance(one of my favorite) is a broad industry, but you can find sub-niches like health insurance, auto insurance, medicare, etc.
In medicare, you can choose countless keywords to make a perfect domain. You can find these domains on expiredomains.net, or you can also try Google keyword planner, spyfu, etc., to find these keywords.
Spend Your Money In Your Experience
Investing in something you’ve experienced is always a good strategy, so buy domains in your niche if you are in construction; maybe it is a good idea to start in that industry rather than in the finance industry, in which you’ve no experience.
Knowing your buyers plays a vital role in getting your domains sold, so starting with your niche is highly recommended. Once you start getting some sales, maybe then you can explore different industries, and before buying a domain name, put yourself in the buyer’s shoes and think if someone would buy this domain name to build a business?
Know What Selling
In real estate, one of the metrics people use to estimate the property’s value is comparable sales. Similarly, in digital real estate, comps are one of the essential criteria to see what is selling and for how much.
To see what is selling and for what price range, namebio.com is one of the best resources. Over there, you can find comparable sales in very much all the industries, and you can use that data to not only price your domains correctly, but you might be able to find some new trends.
IMP– Namebio doesn’t report all domain sales. Most of the reported sales over there are wholesale, so if the platforms domains get sold are drop catch, namejet, snap names, etc. The domain was likely bought by a domain investor, not the end-user.
Price Your Domains To Sell
Listing your domains for sale without doing the proper valuation can be a critical mistake because without the valuation research, either you’ll end up selling your domain below the market value, or it will never sell if the ask is unrealistic.
There are many automated tools that you can use to see what your domain value is, but they are not 100% correct. IMO estimating the exact value of the domain is not an easy task, but there are a few metrics you can use to guess what’s your domain worth.
You can use a few metrics like the industry domain falls into, demand, and the comparable sales data I mentioned earlier.
Suppose your domain falls under a very competitive niche with highly rewarding like finance. In that case, I think it is better to ask for a higher price depending on how much value your domain can bring + for how much similar domains are selling in the current market.
It’s your hard-earned money, so invest carefully!
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