Is domain investing worth it?
Is the juice worth the squeeze?
Being a domain investor can be very profitable (with multi-million dollar listings and sales), and a great investment strategy, but some risks are involved. Remember that domains can be difficult to resell if you’re not careful choosing ones with high resale value.
However, if you research and invest in quality domains, then domain flipping can be a great way to make money online. Another thing to consider is that domain names are becoming more valuable as internet usage grows worldwide. So, if you’re thinking about long-term investments, domain investing may be worth considering.
Here are some pros and cons to help answer the question “is domain investing worth it?” and consider before you decide if becoming a domain investor is right for you.
Is Domain Investing Worth It? The Pros of Domain Investing
1. You Can Make a Lot of Money Domain Flipping.
Is domain investing worth it? Domain investors can make a lot of money by buying and selling domains, so as far as the ability to make money, the answer is yes. IF you choose the right domain names, you can make a lot of money and create a nice residual income stream.
2. It is Cheap to Get Started as a Domain Investor.
Is domain investing worth it? If you want to start a potentially lucrative business for just $10.00, it is. Domain names on Namecheap are less than $10.00 for unregistered domain names, and they even have flash sales where the price is even lower. You don’t even have to have a website (although it is a good idea) to sell domain names, and you can list them for sale right on Namecheap.
3. You Call the Shots Operating Your Own Company.
Is domain investing worth it? If you like being in control, it is. Domain investing is a great way to be your own boss. You can work from anywhere in the world and set your own hours. Your online store sells for you 24 hours a day, seven days a week, 365 days a year.
4. You Can Be Creative with Domain Name Investing.
Domain investing allows you to be creative because you can come up with creative domain names that people will want to buy. New types of businesses are always popping up, and whole new classes of domain names are being created (think cryptocurrency domain names).
Is Domain Investing Worth It? The Cons of Domain Flipping
There are many things to consider when thinking about investing in domains. The profit potential is there, but it’s essential to understand the risks involved before diving in. Here are some of the cons of domain investing:
1. The Domain Market Is Highly Competitive.
Is domain investing worth it? You have to take into account the high level of competition. Domain investors are vying for a limited number of good domains. This can make it challenging to find both available and desirable domains (especially those multi-million dollar ones for $10.00).
2. The Domain Market Is Volatile.
Domain flipping can be risky because the value of domains can fluctuate, and it can be hard to predict which way the market will move. This makes investing in domains a risky proposition for domain investors. You could buy a domain for $100 and sell it for $1,000, but you could also buy a domain for $100, which could be worth nothing in a few years.
3. Domains Can Be Difficult to Sell.
Finding a buyer willing to pay your asking price can be challenging, even if you find a great domain. This can be frustrating and result in losses if the market for that domain changes. Domain investors typically look for evergreen niches for a safer return on investment.
4. There Are Scams in the Domain Flipping Industry.
Like any industry, some unscrupulous people seek to exploit unsuspecting domain investors. It’s essential to be aware of these scams and to avoid them. The first way to start is to purchase the domain name through a known registrar (like Namecheap, for example), if possible.
5. You Need to Be Knowledgeable About the Domain Flipping Industry.
To be a successful domain investor, you must understand how the domain-flipping industry works. This includes knowing how to value domain investments and market them to potential buyers. Check out our Domain Reselling 101 article to help you get started.
6. It Can Be Time-Consuming.
Being a domain investor can be time-consuming because you must research domain investments, buy them, and market them. However, the point of Levered Income is to leverage the platforms available to create residual income. Pushing your domain investment portfolio onto a domain registrar’s platform and paying a commission is a great way to leverage your time.
I love getting an email from one of our domain sales platforms (Namecheap or GoDaddy) saying someone purchased a $5,000 domain name, and the platform is sending me a check.
How to Invest in Domain Names – Is Domain Investing Worth It?
If you ask, “is domain investing worth it,” the answer is a resounding yes. Investing in domain names can be a great way to earn extra income, and it’s a relatively low-risk investment.
However, before investing in domains, you should keep a few things in mind.
First, do your research.
There are many domain name investing scams, so it’s important to know what you’re doing before you invest any money.
Second, don’t over-invest.
It’s easy to get caught up in the excitement of domain investing, but it’s important to remember that it’s a speculative investment. That means there’s always the potential for loss.
Finally, be patient.
Domain investing is a long-term investment, so don’t expect to see immediate results.
If you’re patient and do your research, however, domain investing can be a great way to earn extra income.
How Domain Investors Find Great Domain Names
There are a few things you need to know before getting started, and there are a few strategies and tools you can use to ensure success. Before you start domain investing, you need to understand what it is and how it works. Domain investing is buying, selling, and developing domains or web addresses.
Find Undervalued Domains
To be successful at domain investing, you need to understand the market well, find undervalued domains, and develop them into something valuable.
You can use a few strategies and tools to help you with this. One strategy you can use to find undervalued domains is to use a tool called a domain name generator. Namecheap has a great one (a 95 Lever Rank), and it is free.
The Namecheap Business Name Generator uses artificial intelligence to create an unlimited number of creative and memorable business names for nearly every industry.
Submit a few keywords related to your brand, and the A.I. will provide you with not only unique and brandable business names but also website domains and custom logos to match - all for FREE!
This tool allows you to input a keyword or phrase and then generates a list of potential domain names that include that keyword or phrase. You can then use that list to research the domains and see which ones are undervalued.
Expired Domain Name Investing
Another strategy you can use is to look for expired domains. Expired domains have been registered but not used for some time, usually because the owner forgot to renew them. You can find expired domains by using a tool called a domain name checker. This tool will show you a list of domains that have expired and are available for purchase.
Add Value To Your Digital Real Estate
Once you’ve found some undervalued domains, you need to develop them into something valuable. One way to do this is to build a website on the domain. This can be as simple as a domain sales web page detailing why this domain name is an excellent piece of digital real estate and good for domain name investors.
You can also develop the domain into an online business. There are several ways to develop a domain, including affiliate marketing, digital marketing, e-commerce, or even web application. You’ll need to find the one that best suits your skills and interests.
Is Domain Investing Worth It? Final Thoughts
What is digital real estate? In the online world, a piece of digital real estate is known as a “domain name.”
Also known as "Domain Name Investing," Digital Real Estate is a very attractive business model requiring very little time to set up and start.
- High-Profit Potential
- Online Business
- Cheap to Get Started
- Several Ways to Monetize Domain Names
- Many Available Sales Platforms
- Highly Competitive
- Volatile Markets
- Takes Time to Sell inventory
Is domain investing worth it?
I give domain investing a Lever Rank of 50, which is a fair way to create an additional residual income stream from digital real estate. So, for me, to answer the question “Is domain investing worth it?” the answer is yes.
I currently have over 800 domain names for sale via domain marketing websites I have created and domain registrars and sales platforms like Afternic. For me, domain investing can be worth it. Check out Domain Investing 101 to learn more and help you get started.
There are a lot of strategies and tools out there that can help you make more money. But knowing where to start or what will work best for you can be challenging. That’s why Levered Income is here to help. We’ll give you the latest tips, tricks, and advice on leveraging tools and business models to increase your income and make more money.