Have you ever given a thought to the idea of investing in domains? If you are yet to try out this field, you’re probably missing out on some really good online business and returns. As a rule of thumb, the value of domains largely depends on the type of website they are linked to.
As such, the higher the number of activities a website records, be it marketing or economic, the higher the value of its corresponding domain. Indeed, a majority domain investors are able to double their investment in quite a short time of doing the business.
So, here are eight top tips that will help you become a better investor when dealing with domains.
1. Stick to .COM domains when starting out
Today, there’s no shortage of top-level domain extensions from which domain investors can choose. However, it is recommended that you only focus on the more popular .COM domains especially if you are only starting out. This helps you work with something a lot of people are conversant with and which has a record of giving consistent returns to other investors.
If you have to diversify at this stage, then let it be to other popular domains such as .NET, .BIZ, or .ORG. Before investing in any of them though, ensure that you understand their respective pros and cons. Once you are more familiar with the domain market, then feel free to branch to any other extensions you deem appropriate.
Register .COM is very cheap for now, with just under $1.00 for a year at GoDaddy
2. Go for memorable domains
If you are looking to hit the ground running in the domain business, then be sure to only deal with domains that are trendy and preferably those that make part of your target audience’s daily conversations. For instance, a domain such as work.com is an example of an ideal choice.
For best options, let your preferred domains have no more than two or three words max to make it easy to remember.
Domain Registrar Recommend: GoDaddy || NameCheap || NameSiLo || Domain.Com
3. Educate yourself about domains
Like anything else, domain buying/selling business entails a lot of new things which you need to be conversant with if you’re to find success in the business. So, take your time and learn some of the key aspects of the field before you can even engage yourself fully in the business. Get to know what domains entails and possibly look for others who’ve found success in the field for tips and strategies.
4. Understand the relevant regulations involved
In the past few years, a few jurisdictions and regulatory bodies have formulated regulations aimed at controlling the booming domain selling and buying business. As such, it’s crucial that you educate yourself on these regulations so you don’t find yourself in hot soup for failing to observe them- remember ignorance of the law is no excuse. Just to give you an overview of the things to avoid here- first, steer clear of trademarks as this is one of the quickest ways to get into trouble.
However, we’ve noted with a lot of concern that some companies and businesses tend to make scandalous claims when trying to set boundaries for what their trademarks covers. Do not get bullied. It’s important that you know your rights in such situations.
5. Look for registrars with a good history with domain investors
If you’re keen enough, you possibly have noted that there are a number of domain registrars out there today with questionable security and reputation. This is one of the reasons you need to be very keen when making your choice here to ensure that your preferred registrar meets your security standards. For information on this, consider turning to the web to find out what other users are saying about that particular registrar.
6. Start small
Just like any other venture, domain buying/selling is not for everyone. As such, it’s important that you first begin by testing the waters and developing your skills such as negotiation before you can take the plunge. Avoid rushing things as this might cost you in the end.
Want to make it fast in domain selling/buying business? Focus on a particular niche especially when starting out. You don’t need to be a jack of all trades as this won’t allow you to learn the ropes properly.
By specializing on a niche or a few of that interest you, chances are high that you will become an expert in that particular niche in no time.
8. Learn the meaning of “wholesale” and “retail” in domaining
Just to give you an idea of what these two crucial terms mean in the domain business, here are their simple definitions; wholesale refers to the price paid by a domainer to acquire a particular domain name. Conversely, retail is the cost paid by the end-user (also referred to as the enduser) to the domainer for a domain.
Just to be on the safe side, ensure your domains as the domainer are appealing and in high demand so that you can find an interested enduser faster.