Article 2

Setting up a website uk

Domain names are hot commodities in today's tech-centric world. The $16 million sale of 'insure.com' to Quinstreet in 2009 may have set the world record, but even lengthier domain names are routinely sold for hundreds of dollars every day. The result is a unique opportunity for investors to invest in domain names that can be sold for a profit in the future.


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Building a Solid Domain Portfolio

Building a high-quality domain portfolio can take months or years to accomplish. Often, the key is looking forward to what domains may become popular in the future and hedging through numbers by purchasing hundreds of domains. Others choose to purchase a few already high profile domains and sit on them hoping that they appreciate in value.


Generic Names

Words that describe a product or service, including new and emerging products, can be a great investment. But it's very important to avoid any copyright or trademark issues that could result in domain forfeiture.

Geographic Names

Names of cities or countries, including up-and-coming locations, can be great investments over time that can be sold to web developers looking to build out community portals or other businesses centered on those communities.

Business Names

Generic business names, such as dentist or chiropractor, can be great investments when combined with geographic names.


Timely Names

Timely names can be great investments when combined with events occurring in that year, such as 2020bestbusinessideas.com


Buying and Selling Domain Names

There are many different ways to buy and sell domain names. Many standard domain registrars, such as GoDaddy.com, will facilitate sales via auction. Meanwhile, specialized websites, such as Sedo, are designed exclusively to buy and sell domain names. Finally, parking domains with a for sale page is a great way to draw targeted interest from potential buyers

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Theresa Chiechi, {Copyright} Investopedia, 2019. 


Set Price

Setting a specific price is the preferred method for domain sellers that have a large portfolio of domains and aren't in a rush to sell them.


Auction

Auctions are a great way to sell higher profile domain names where there is a lot of interest, since they typically result in the highest possible price.


Make an Offer

Make an offer sales are well-suited for niche domains that may not have a lot of interest and/or where the exact value of the domain isn't well known.


Risks of Investing in Domains

There are many risks that would-be domain investors should carefully consider before buying and selling. The three largest risks are liquidity, subjectivity and legality, but there are also many other ranging from misleading appraisals to faulty escrow payments. Would-be buyers should carefully consider these risks before investing in domain names.


Liquidity

Most stocks and bonds can be bought and sold with ease through a broker, but domain names can be much harder to sell. Finding the right buyer is often a matter of listing a sale for several months or even years, which means that investors should have a lengthy time horizon and the ability to stomach a loss.


Subjectivity

Stocks can be valued by the discounted value of future cash flows, while bonds can be valued by their coupon payments and interest rates. Domains are a much more subjective valuation that can be very difficult to pinpoint. And so-called domain appraisers are well known for issuing lofty valuations that can be hard to realize.


Legality

Domain names can be a sticky business from a legal standpoint. Choosing names that are too close to a trademarked name can result in a lawsuit and a court order to forfeit the domain name for free. In other cases, stolen domain names can be sold before the buyer has the ability to discover that they're not the true owner.



Publisehed in: Cheap-Domain-Name 03-2019

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