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A Short Introduction to Domain Investing

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Domain Investing for Top Level Domain Name
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“Domain has and will continue to go up in value faster than any commodity known to man…”

Bill Gates, Microsoft Corporation

The internet has provided us with various means of making legitimate income online, and one of the model provided is Domain Investing

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Domain Investing is an online investment model that has stood the test of time due to its low-entry Cost, high return on Investment and increase in demand for quality domain names by new startups or establish brands that are seeking to rebrand to improve their online presence.

Think of Domain Investing as an Online real estate, it really becomes clear where the money lies and where you’re able to make money.

Imagine owning plots of land on an Island in Bahamas where you get approached by high profile investors, musicians, actors, hotel investors etc. with each of these individuals trying to purchase the land because of its exclusivity and potential value for business.

You are in an advantageous position while negotiating with these individuals, as such, you will make a huge profit by selling the lands. Same technique applies to Domain Investing.

If you hold a valuable and high quality domain name, you will get approached by a lot of businesses that seek to improve their online presence.

According to report by Verisign The third quarter of 2019 closed with 359.8 million domain name registrations across all top-level domains (TLDs), an increase of 5.1 million domain name registrations, or 1.4 percent, compared to the second quarter of 2019.1,2 Domain name registrations have grown by 17.4 million, or 5.1 percent, year over year.

Domain Name Registration Data

This report confirms that domains are not going away anytime soon, so having knowledge of what kind of domain name to invest in would be really beneficial

As noted earlier, Domain Investing is one of the many ways of making money online as long as you’ve have a mobile device to navigate the digital space. 

You don’t need to be a programmer or a geek to be a domainer. All you need is your time and intellect to handle the domain strategy. However it might require small capital that I will explain as we get further.

Here is a quick overview of the topics we will cover in this short expo.

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  • What is a Domain Investing?
  • What is a domain name?
  • Types of domains keywords.
  • Types of domain extension.
  • How is domain different from a website?
  • How to choose a domain name
  • How to find quality expired domain name
  • How to buy a domain name
  • Where to sell a domain name.

What is a Domain Investing?

A Domain Investing is an act of investing in a domain name for a long or short time to exchange for profit when an end-users finds interest in it.

You must be thinking that the definition is short, Lol But then that’s the newbie definition for anyone who wants to venture into domaining business.

What is a Domain Name?

A domain name is a digital address that makes it easier for a website to be located. For example, your house is the website and your house address is the domain name. It’s simple, right? Of course it is simple.

Types of Domain Keywords

There are six major types of keyword domain name:

  1. Generic
  2. Exact Match 
  3. Brandable
  4. Acronyms
  5. Numeric
  6. Alphanumerics

Let quicky give a summarized view on the types

Generic- These are dictionary terms not related to specific products or any registered trademark.and has real life use. Example is Pet.com, House.com, Game.com 

Exact Match- These are single or multiple keywords that exactly define product service. Examples are HomeService.com, CloudComputing.com,RentalCar.com.

Brandables-This are made up keywords that do not exist in the dictionary. Example is Google.com, Spotify.com and more.

Acronyms- These are a series of letters, generically represented by L, as in LLL for 3-character keywords like AIT.com, PDP.com,APC.com that can portray diverse meanings.

Numeric- These are a series of numbers, generically represented by N, as in NN for the 2 character keyword 12.com, 13.com and more.

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Alphanumerics- These are a combination of letters and numbers, such as 1N.com, 2B.com and many more.

Types of Domain Extensions

These are Letters to the right of the dot in a domain name. E.g .com, .net and more. We have different types but i’ll list very few below.

Top Level Domain Name

Top-Level Domains (TLD) Industry-standard extensions that started the domain name business:

  • .com – Commercial use; trusted as the standard for domain names; most popular and valuable TLD;
  • .net– Originally networks; much less popular than .com. 
  • .org – Not-for-profit organizations
  • .edu – U.S. higher education
  • .gov – U.S. national and state government agencies
  • .mil – U.S. Military
  • .int– International organizations

Later Extensions

  • .info – Information
  • .asia – Asian-based entities
  • .biz – Business
  • .mobi – Mobile-compatible sites
  • .name– Names
  • .xxx – Adult websites

And lots more but then .com is the King of all domain extensions.

.coms sell for more. 

How is a Domain different from a Website?

The difference between a domain and a website is that a domain is the address that allows a website to be located. Without a domain name, it is not possible to build a website! It’s as simple as that..

How to  Choose a Domain Name

Here are some quick tips to help you choose a domain name for your next website.

  • You’ll need to stick with a .com domain name extension as it is the most popular, easy to remember, easy to market and easy to type in by possible users.
  • Make sure it is shorter and easier to remember
  • Make it easy to pronounce and spell
  • Do not use numbers or hyphens

How to Buy a Domain Name

While choosing a Registrar for your domain names it is important to have the following factors as a guideline for making your choice

  • Security: this a measure of how secure your domain name is with the Registrar. Do they offer 2FA (2 Factors Authentication)? WIll your domain name be pulled out of your account without consent? etc.
  • Ease of Transfer of Domain Name: This is a measure of how fast you can get your domain transferred  upon request, some registrar will delay your tranf for few days while some will honour your transfer request immediately
  • Privacy: while some Registrars charge for WHOIS privacy, other provide WHOIS privacy for free

If your decision for choosing a registrar will be based on the aforementioned factors, then I will recommend the following registrars to you

  1. Epik.com: Epik provides free privacy for every domain name registered, it accepts various payment methods like Crypto, Credit Card, Wire Transfer and Paypal thereby making it easier to make purchase for your domain names. Also there is a 2 Factor Authentication process in place to secure your domain name.

Others are

  1. Dynadot.com
  2. Namesilo.com
  3. Namecheap.com
  4. Godaddy.com and lots of others.

How to Find Quality Expired Domain Name

Buying domain name doesn’t require much effort, Log in to your preferred registrar, search for the preferred domain name, choose your payment method and viola you are done with the registration. However finding quality domain names with potential end users is a skill that has to be learnt.

While most of the good domain names have been taken either by domain investors or being used for websites, yet some quality domain names become available for registration on a daily basis as the previous owners didn’t renew due to various factors like death of owner, moving on to a new project etc.

The following tools will help in finding quality expired domain names

  • NameInvestors.com: This is a free tools by Epik.com that lists Dropping domain names that has previously sold, expiring and quality domain names with quality metrics, also, there is a section tagged “Available Domain List” which showcases handpicked domain name that has potential of selling for profitNameInvestors
  • ExpiredDomains.net: This is a free that allows to search for expiring and marketplace domain by manipulating filter using parameters like keywords, backlinks Cost Per Click etc. Would like to know how to use filters on ExpiredDomains.net to get quality domain names? Join the FREE domain investment masterclass whatsapp group through this link Bit.do/domainmasterclass

How to Sell a Domain Name

There are lots of marketplace where your domain can be sold for a great value. While choosing a marketplace to sell your domain names, it will be important to consider the following factors

  • Commission: Some marketplace charge exorbitant commission as high as 35% after your domain name has been sold while marketplace like marketplace.epik.com charge 9% commission.
  • Ease of withdrawal: How easy is it to withdraw your proceed after sale, will you have to wait for days before you can get your money

The following are recommended marketplace to list your domain name for sale;

  1. Epik.com
  2. Afternic.com
  3. Sedo.com
  4. Dan.com
  5. Namejet.com and lot more..

Want to learn more about the rudiment of domain investing? If yes, Epik.com has provided a FREE detailed course about domain investing with contribution from Industry experts. Visit DomainGraduate.com to get this guide.

Similarly, there is a FREE domain investment masterclass group where participants are being exposed to the latest technique involved in buying and selling domain names. Interested in joining? 

Fill the form here at Bit.do/domainmasterclass to join the FREE group

Wow! We’ve come to the end of the short exposition to Domain Investing but let me chip this in. In domaining, it’s possible to buy a domain name for $7.49 and get it sold for $XXXXXX. Don’t underestimate the endless opportunities domaining can fetch you.

You can visit DnJournal.com and Namebio.com to see for yourself!

Thanks for taking the time to read this short article.

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Paschal Okafor is NaijaTechGuide Team Lead. The article A Short Introduction to Domain Investing was written by NaijaTechGuide Team. The article was last modified: February 6th, 2020

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