The Virtual Side Of Me

There are difference if you are choosing to sell a domain to a reseller and to an end user (be it that it is to a company or an individual). The difference always lies between the period of selling and also the price of the sale.

If you are reselling to a reseller, do not expect a huge ROI such as 50,000% or some sort like that. The profit that you have obtained depends on the name itself, the tenure that you have been holding the domains and the price that you have originally bought the domain for. If you have chosen the right name that had appraised in value (for instance the 4 letter .coms), you would be able to return a ROI of 500 to 1000%. The tenure of holding these domains would be maybe for just a few months or 1-2 years. This is called domain “flipping”. However, if you have registered some wrong names, be prepared that you might not be able to successfully conclude a sale. Thus the choice of names is very important for the success of your domains investing business.

Selling to end users however, needs patience and time. You must have adequate knowledge and time to advertise your domain that is for sale. Sometimes, listings in auction houses such as TDNAM, Sedo or Snapnames would take years to be concluded to an end user. This is because end users need only 1 name and they would be spoilt for choice as there are certainly many names that are on sale for them to choose from. However, end users generally would be prepared to pay for a large price if compared to the resellers.

There are 2 types of buyers for the resellers basically. There are the other resellers itself and the end users. The resellers would be someone just as myself and the end users sometimes consists of individuals or companies who had bought the domain for the development of a site, business page or even a blog.

Now, there is always a question of whether an end user would spend $100,000 on a particular domain. Large companies would never have a problem in paying that amount for a domain. However, the question lies in the individuals on the affordability and reason to buy at this price. Just think of this. What if there exists a young child of a multi millionaire at the age of 17 where he is always spoilt for a choice. One fine day, he found that all his friends own a blog or a web page where he was shown off their magnificent layout and circle of friends featured there. That night itself, he found an auction for a CVCV.com that is listed for the price of $100,000 where he would like to show off to his friends about his superb site and superb short domain name. He told daddy about this. Daddy, who was so intrigued by his son’s interest in something good that brings in educational value, paid for the domain and thus, the son started his mini project in web development. What if you are the owner of the CVCV.com?

There are a lot of individuals raising a controversy of whether there are a market or would be prices of domains soar beyond imaginable value to justify whether the domains investing would be a real thing or not. These individuals would perhaps be those who had commented about this industry without a proper research on the prices of domains if compared to 5 years or a decade ago.

We take for the example of the 3 letter .com. A decade ago, names such as VKR.com would be signified as useless and those who registered those names would be laughed at and jeered about. However, look at the prices of the 3 letter .coms now. The minimum resale price for these category of domains would be at $6k to $7k. Who is laughing at the moment? The cost of the investment would be at of course, the register fees 10 years ago and renewals of the domains for 10 years at approximately $10 each. Thus, the total cost would be around $100 for the price of $7k at this current moment. Would that convert to a 7000% ROI? Now, I am talking about just one domain. What if you are holding to 10 or hundreds of those? We have seen individuals that has turned from rags to riches by investing in domains and that is really not something to be laughed about..

One of the most untapped money generating online investment would be the domains investment. Many have been in the advertising industry as it is generally the most “advertised” as money generating but what most people failed to see is that domains are just the same as the physical world’s real estate investment.

As many have seen domains as just well, domains, the name of a web page is so important that sometimes traffic (which is the most important to the success of a business), depends on the name itself. It is thus important that the name is easy to memorize and brandable at the same time. You would not want to have a name for an online business to be newugibiwefoiwe.com would you? Short and pronouncable domains remain one of the most sought after in the market as well as generics such as chair.com and table.com. I project that in a few years down the line, all meaningful and short .com would be totally registered and if you would want to buy names from the .com TLD, you would have to buy it from the resellers and could you guess what the prices at that time would be?

Have you ever thought of the concept of the Yellow Pages being online? The fact is that because the internet is so huge with more than a million websites that exists in it, it is quite impossible to have a yellow pages for all the internet websites and urls. Thus, we can see the start of the link directories trend whereby they would be listing url for websites according to the right categories.

If you have a domain that is high in PageRank, you can now start to sell links that needed to be inserted to your high PageRank website. This way, you can earn more than $3,000 per month depending on the pagerank of your domain as you would be charging the users for links to their website. With these links in their your page, the link purchaser would have the benefit of gaining the exposure and traffic to their websites which has been proven as a successful way to make money online.