Domain Names as Digital Assets
Who Knew They Could Be Worth THAT Much
Yes, I'm behind. My father died in 2020 and donated his body to the state of Virginia. The state used him for 2.5 years, cremated him, and then sent his cremains to the funeral home three months ago. We waited to bury him until after his military stone arrived and was in place, and while the weather was pleasant. It was a journey, like he had died all over again. So yeah. I had to take some time. I’ll give you all some time, too, by providing free articles for the next week or two.
Without further ado, here's my story: When I sold my website in 2008 for a nice sum, I had no clue as to what I needed to know to sell the site and its domain name. I was so overwhelmed with the amount offered that I took the first bid and ran with it. Knowing what I know now, I probably could have tripled my sales price, but that was the "wild west" days of flipping websites and domains. Now, the ante is much higher.
While you can make a nice sum on a well-spun website filled with quality content instead of 404s, a buyer isn't going to spend tens of thousands on a site that isn't geared toward optimal traffic and monetization. But, at the bottom of it all, that domain name is what's important. If someone wants that domain name badly enough, he or she could be very happy to pay for it and may even ditch all your content just to own the domain.
Domain is Main
Spend some time thinking about your domain name. If you are creating a website for a company and the site is part and parcel of your company and its services, then you have an easy go of it for the most part by using the company name in any number of domain variants. Remember that when you go to sell your business, the website and the domain name goes with it. So, add the cost of those items into your sales total, otherwise you'll short yourself.
If the website IS your business, then think about your brand (if you have one), your niche (very important), and your choice of top-level domains. The .com top level domain is trusted, as well as .org and .net. Those three, along with .gov, .edu, and .mil are what are known as generic top-level domains.
While the .com name is the most used and trusted, you can find a slew of other top-level domain names that might suit your focus more than a commercial perspective. Become familiar with these domains, as you may need to use this list in the future if you decide to purchase a domain simply to resell.
That said, sitting on a domain name is, basically, frowned upon, but if you have it actively for sale, then no one will say a word. Still, it wouldn't cost you much to get into a blog and use that domain name and create some quality content. Although, I'll be the first to tell you that content isn't the only thing that will drive the sale of a domain.
Steps to Domain Name Flipping
Buying domains for profit, also known as domain flipping, is the practice of purchasing a domain name with the intention of reselling it at a higher price in the future. Here are some steps to consider if you want to buy domains for profit:
Research: Conduct thorough research to identify potentially valuable domain names. Look for popular keywords, trending topics, or upcoming events that people may want to create websites for. Use domain auction sites, marketplaces, and tools like any number of free-to-use keyword planners to help you identify keywords and gauge search volume. Never purchase a domain on a whim. You’ll sit on it for years unless you get lucky. If that domain is the only top tier domain left in a certain tree, then you’ve got something that someone else will, eventually, want. It’s a gamble.
Purchase: Once you have identified a potentially valuable domain name, purchase it. You can buy domains from domain registrars, domain auction sites, and private sellers. It's essential to research the seller's reputation and the domain's history before making a purchase (think of this transaction as similar to buying or selling a used car — the same amount of mistrust is useful).
Improve the domain: After purchasing the domain, you can “improve it” by creating a professional website, adding quality content, and optimizing it for search engines. This will increase its value and make it more attractive to potential buyers. What you are doing is braiding the mane on a horse to make it more attractive on the sales stage in Keeneland, Kentucky.
Sell: Once you have improved the domain (or not), you can list it for sale on domain auction sites, marketplaces, or reach out to potential buyers directly. Set a reasonable price based on the domain's value and negotiate with potential buyers to reach an agreement.
Rinse & Repeat: If you make a profit from selling your domain, reinvest that money into buying more domains and repeating the process. Keep researching and identifying valuable domain names to purchase and sell for a profit.
It's important to note that buying and selling domains for profit can be a competitive and risky business. But it can also be fun and can supplement your income. Some domains may not sell for the price you want, and others may not sell at all. Therefore, it's important to approach domain flipping with caution, and do your research before making any purchases.
It’s also good to hedge with a portfolio of domain names if you’re serious about this line of work.
In The End
If you want to daydream about domains, then take a look at this GoDaddy article that lists the top 25 most expensive domain names. When a domain name sells in the millions rather than in the thousands or hundreds, then you might be enticed to claim a few domains as assets. Note that all the domains in this list end in .com.
Think of the domain name as the lynchpin that holds your assets together. It truly is that important. If you feel your domain name is worthless on the flipping marketplace, but is invaluable to your business, then hold onto that domain name until you decide to part with your assets that you built under that domain. Then, the domain name will prove invaluable as it ties together everything you've built.