Domain Name Investments: Where to place your money

in Domain Names Entrepreneurship Tech News by Francis Simisim — July 25, 2009 at 12:00 PM | 0 comments

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We’ve all been hearing about the blockbuster sales of domain names recently, where a lot of domain names have been selling for millions. We all want to place our money where the we could be rewarded highly, so the question right now is where can I invest in domain names?…

There are many types of investments in domain names, but, first, we need to look at several lucrative topics that you could invest and have a big demand. Sedo has recently released a list of their top 10 domain name categories based on their sales:

Domain name Categories

1. Business
2. Acronyms and Letters
3. Media
4. Travel and Leisure
5. Shopping
6. Sports
7. Finance and Money
8. Technology
9. Society
10. Gambling

There are I believe three types of investments in domain names, the short, mid and long term investments. The “term” refers to how fast you could liquidate your domain names for a good value.

Short Term

3 – 4 character domain names

The demand for three and four character domain names are on the rise, more and more people are acquiring these names so the prices have gone up. These are primarily being invested by companies and domainers. Companies are trying to secure the acronyms of their domain names, while domainers are looking to resell. I believe it’s easy to sell these domain names today in auctions, it could easily pick up an $X,XXX value.

Mid Term

Keyword Rich

Keyword Rich domain names, I believe, are in the midterm because it’s something that’s best to develop a minisite on. If you invest in these, it’s not all the time that you could sell it and could require more effort and focus to turn it over. The only way is to develop it, let it age and get picked up by search engines. It will gain way higher value (usually in the range 10x the value or more).

Long Term

ccTLDs

Not all ccTLDs are included in the long term, ccTLDs that are established, like .CO.UK, .ME, .TV etc., are already saturated and commanding a high price. The ccTLDs that is being pointed to here are ccTLDs that still have premium domain names available. ccTLDs like .PH, the ones that still have lots of premium up for grabs. I’ve placed it in the long term as it would take time before their values would go up. It would take significant development and it’s dominance in the search engines for it to go up in value. I’ve written more about it here.

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4. How to raise money to buy a Domain Name: Financing your way to a Premium Domain Name in the AfterMarket
5. Make money thru Domain Names: 7 Types of Domain names
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