Million-Dollar Internet Listings: How Domain Selling is the New Real-Estate Investing
The shift towards a digital economy has led to an unprecedented demand for digital real estate.
... The goal of real estate is to buy low and sell high. But with extremely high expenses, upfront costs and tremendous effort, the return on investment is often not as compelling as reality television would leave viewers to believe. However, if done right, domain investing can be a relatively low-cost, low-maintenance investment. By purchasing multiple domains, the investor diversifies their portfolio and boosts potential profit. Because the price point starts reasonably low depending on the desirability of the domain, this investment strategy is also more accessible than traditional real estate investing. If purchased strategically, domain investors can acquire a domain that appreciates over time.
Some of the most successful publicly reported domain sales include:
What makes domain investing worthwhile is the possibility of landing a high-quality domain that can end up being worth a Beverly Hills home. In general, the return is much stronger when investing in better quality domains. However, just like real estate, locking down those domains will take strategy and foresight. Almost all high-quality names like the ones listed, especially those that will provide a six-figure return, are already taken. Therefore, you will likely need to acquire them from other investors via wholesale channels, e.g. a GoDaddy auction. For many domain investors, it’s beneficial to use a wholesale platform where they can easily liquidate domains for a fraction of retail prices, recouping their investments.
read more (entrepreneur)
The shift towards a digital economy has led to an unprecedented demand for digital real estate.
... The goal of real estate is to buy low and sell high. But with extremely high expenses, upfront costs and tremendous effort, the return on investment is often not as compelling as reality television would leave viewers to believe. However, if done right, domain investing can be a relatively low-cost, low-maintenance investment. By purchasing multiple domains, the investor diversifies their portfolio and boosts potential profit. Because the price point starts reasonably low depending on the desirability of the domain, this investment strategy is also more accessible than traditional real estate investing. If purchased strategically, domain investors can acquire a domain that appreciates over time.
Some of the most successful publicly reported domain sales include:
- Insurance.com - $34 million
- Voice.com - $30 million
- Hotels.com - $11 million
- We.com - $8 million
- Beer.com - $7 million
What makes domain investing worthwhile is the possibility of landing a high-quality domain that can end up being worth a Beverly Hills home. In general, the return is much stronger when investing in better quality domains. However, just like real estate, locking down those domains will take strategy and foresight. Almost all high-quality names like the ones listed, especially those that will provide a six-figure return, are already taken. Therefore, you will likely need to acquire them from other investors via wholesale channels, e.g. a GoDaddy auction. For many domain investors, it’s beneficial to use a wholesale platform where they can easily liquidate domains for a fraction of retail prices, recouping their investments.
read more (entrepreneur)
