10 Domain Investment Tips for Beginners | DomainInvesting.com
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10 Domain Investment Tips for Beginners


Sahar’s post and a thread on Rick Schwartz’ Targeted Traffic Forum got me thinking about what advice I would give to someone looking to enter the domain investment business. Since I have a couple of friends who recently started out in this business as a hobby, I have a few pieces of advice that I shared with them and will publicly share.

1.) NEVER ever register domain names with famous or somewhat famous trademarks (or trademark typos). Either you will get burned or live in fear if you buy them. Not to mention that the money producing ones are registered (mostly by keyword scripts), so it would be a waste. Additionally, stay away from domain names of athletes, celebrities, politicians…etc.

2.) Read as much information about domain names and the industry as possible. It takes a gut feel to be able to do well in this business without spending a fortune on new registrations. You may end up wasting alot of time and money registering domain names that have no meaning or value to anyone but you. I have a list of valuable domain resources in my blogroll, and you can go from there.

3.) Get a feel of what’s selling in DNJournal’s weekly sales list. See previous sales prices on DNSalePrice.com. Check out what’s closing on Sedo and Afternic as it is more likely that a rookie will have access to names that don’t make DNJournal’s sales list. It might be wise to focus on a particular niche at first (like LLL.com names or financial names for example). Try to find unregistered domain names that are similar to ones that have sold.

4.) Sign up for one of the public domain forums and read as much as you can. I believe DNForum.com offers the widest variety of information, but DomainState.com and NamePros.com are also great.

5.) Always be honest in your business dealings. Although most business is done online in the cyber world, almost everything is traceable. No matter how many online personas you may create, you will be known for what you post and how you post it. If you are dishonest, it will probably haunt you, so don’t start off on the wrong foot. There is no such thing as “easy money.”

6.) Ask some of the more seasoned domain investors for advice. I’ve met many people who have been successful in this business, and most are very willing to give out advice. Alot of people spend hours in front of their computers focusing on various projects, and human interaction is greatly appreciated. Personally, I like speaking about domain names, and it’s great to see new people in this business finding success.

7.) Read the news, popular blogs, trade journals…etc to find and become knowledgeable about current events and new trends.  Buy non-trademarked names related to those trends you spot.  Never try to capitalize on a tragedy or other event no matter how much money you can make in a short period of time, unless you intend to build a “real” memorial site. Think of it this way, would you want a New York Times headline to read: “Cybersquatter John Doe Takes Advantage of Families of XXXXXXXXX Tragedy?”

8.) Don’t spend thousands of dollars on a single name until you have a plan that does not solely rely on ppc monetization.  It is likely that the seller isn’t selling a high earning ppc name for less than market value, so it will be difficult to find a deal.  Also, don’t buy an expensive name until you have the resources already aligned to implement your plan.  As Darren Cleveland mentioned in this post, development is difficult, can be expensive, and can be time consuming.  Unless you need to act immediately, hold off on buying high value names.

9.) Do your due diligence when buying a name in the aftermarket.  As I said in this post, you should do a Whois history check, call previous owners and search the forums/boards for any issues.  If you buy a stolen domain you may lose your money and the domain name.  Aftermarket sites like Sedo are not immune from domain thieves.  You should also use an escrow service like Moniker or Escrow.com for higher value transactions.

10.). Keep good records of your domain portfolio, sales, expenses and contacts.  Use the contacts as leads for other domain names or even for open discussion.  Track your domain names as you would track stocks in your investment portfolio.  Always be honest on your taxes because the penalties could be much more than what you would gain.

Domain investing is a great hobby or profession for many people. I believe it is still the “wild west,” and as such, special precautions need to be taken when going into this business. If something seems too good to be true, it really probably is. Trust your gut, and if you need help, feel free to ask.

About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.

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Comments (3)


    Thank you for this resourceful and instructional blog. I am researching the viability of domain monetization.
    I love learning computer and communication related technology.

    October 16th, 2007 at 5:24 pm


    Great blog, I was wondering if you had any good tips on selling a domain name. I bought and posted my first domain daytonaestate.com


    Knowledge is the most important part of domain ownership. In physical real estate, comps are published and well-known, so everyone can give a reasonable best guess about the value of a property. Domain names aren’t like that, so buyers and sellers need to pay close attention to everything around them – recent public sales, trends, news…etc. All of this goes into the value of a domain name.

    I think you should evaluate what the positive attributes are related to a particular domain name. What kind of person would want to develop it? How could it be developed? What could you use the name to do? Etc… Once you have all that, you need to find the person/company that would be able to use it in that manner, and then contact the decision makers. Convince them why they would want it. This is much more difficult than it appears, and even the most successful people haven’t necessarily done this.

    I’ve always said I make my money on the purchase. Don’t pay more than you think you can sell it for, and don’t buy names that you probably can’t sell. It’s better to have a single $1,000 name than 100 $10 names.

    October 17th, 2007 at 7:14 pm

    Domain News

    Hi Bryan, this is just an opinion but in my opinion you have a decent domain but only if you do one of two things first you find a buyer in the daytona realestate market that needs your domain or wants it this might be hard to do

    your second option and this is the one I would recommend build a blog about daytona real estate or set up a free classified ads site and do a little local advertising so that you can get some listings maybe call local realtor and build some traffic once you have some decent traffic maybe charge for certain listings or charge for all listings and add adsence you can get high return per click on many real estate keywords then after you have made this domain valuable then if you still want to sell it then it should not be to hard and for a good profit

    December 15th, 2007 at 1:02 am

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