Domain Investing Trends: How to Identify and Profit From Them

Part One

In our digital age, domain investing has emerged as a profitable avenue for investment. It’s a bit like real estate investing, but instead of physical properties, you buy and sell virtual ones – i.e. domain names (with or without websites).

What makes it even more attractive is that, unlike bricks and mortar property, the entry/acquisition costs for virtual property are low – and ROI (return on investment) can be huge!

Some Key Factors

  • Understanding the Market: Domain investing isn’t about purchasing the first available name you lay eyes on. In other words, don’t rush in! It’s about understanding the market, knowing what’s in demand, and identifying trends.
  • Research is Key: Like any good investment, research is key. Look at what domains are selling and for how much. The web can be your friend if used properly. News sites, specialist blogs and newsletters can give you many good ideas. Once you get more advanced, you can even use tools to track the history and sales data of domain names.
  • Trend Forecasting: Just as in fashion or finance, trends come and go in domain investing. Stay ahead of the curve by monitoring the market for shifts in demand.

“Domain investing is as much about understanding the market as it is about predicting its future.”

Here’s Just One Example

Last week I was reading the Flippa newsletter, and one of their featured listings was for a business specialising in “foldable kayaks”. It was apparently doing huge business (judging by how much they were selling the virtual property for).

It sounded like a good idea, and when I put the term into Google, there were loads of ads. That’s always a good sign!

So I went to the WhoIs to see who had the domain name foldablekayaks.com.au. No one did!

Guess who has them now.

Next Time

In Part 2, we delve deeper into identifying trends in domain investing.

And more importantly, we’ll give some further examples of how we have profited from this process.

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