If you are looking to invest in domains there are a few things you should know and the domain name sector is perhaps the most unstable place to be on the internet. Although the whole space is still relatively new and the internet is improving and changing on a regular basis, the domain name part of the online world is certainly the most fluctuating and unruly place to be. Take a look at these hints and tips on what to watch out for…
First of all, did you know that one of the most expensive domain names fetched an estimated $12.5m? Not only that but can you guess what the name was or whatever-popular and lucrative sector it represented? Sex.com of course as any good business person known; sex sells. And only last year in the midst of a worldwide recession, Toy ‘R’ Us paid out a whopping $5.1m on the toys.com domain name. So much for businesses flailing last year! Business.com went for $7.5m and Wine.com for $3m, proving that there is money out there to be spent on a domain name that is apparently worth spending millions on. The trick is to know what is worth the bucks and what is not.
At all costs you should avoid hand registering thousands of cheap and useless domains. Investing in domain names is not about quantity it is about quality. You have to pay fees every year to register domain names so if you have thousands you wil pay thousands whereas if you have a lump sum spare to spend on investments make a few big ones rather than loads of small ones. Your registration costs every year will drop dramatically and yo are likely to have invested better in a domain worth more than loads that are worth pittance.
It is now beyond the pint worth investing in the four-letter domain names. At first, investing in a domain name that has four letters and is easy to pronounce made sense as remembering something easy to say out loud is the sign of a good name. However, now that seemingly all of the easy-to-pronounce domain names have been registered, you are only left with ridiculous sounding four-letter names such as RFYJ.com. Say it out loud then compare it to bebo.com or wado.com and you will soon see what I mean.
Buying lots of cheap domain names that are still worthy can be best done at auction sites. The trick is to sell to end users for 10-120 times more than you paid by explaining to dubious end users why the name is valuable. It takes some patience as end users wil ask lots of questions and test your patience but if you can make a huge profit then it is worth answering their questions and enjoying the outcome.
There are many more things to take into account when investing in domain names and here at the UK SEO Agency we offer a range of services that include search engine optimisation and web design. We can help you to increase your web presence as well as help you with domain names so contact us now if you wish to learn more.