Define a good domain? I was able to register a domain name for a client last year. It cost them $7, and was the only domain name they wanted for the launch of a new venture. That to them was a good domain, and it was available to register.
As a domainer, that wouldn’t have been a name that I’d have registered in the hope of flipping. From an investors point of view, I personally say stick to “aftermarket” or “expired”
domains. This is because there are already 114 million .com domain names registered, and to get any domain name that is going to be resalable has more than likely already been registered.
To buy these type of names, you are going to have to look at expired domain names. New domain investors often get lured in on the attraction of registering domain names for $8 and selling them on for a large profit. Let me dispel this strategy here and now. Blindly registering domain names for $8 a piece in the hope that someone will buy one of your names is not the right way to start domain investing.
It’s an excellent way to lose money straight away. Most domain investors, for that reason, invest in expired domain names. One of the main topics later one will be expired domain names. We’ll cover this topic in great depth later on the blog. However, I wanted to give you a brief explanation of an expired domain name, and why they can be so valuable.
Expired domains are domains names that have lapsed in registration. Most domain names which expire are worthless, and eventually end up being returned to the registry. However, some still hold a value, and can be sold on to another company if you know how.
If you’ve read about the Domain Name Lifecycle, you’ll notice that I said that anyone can catch a domain name during the redemption period. This is done by backordering a domain name with a Drop Catching service. There are many available. The most popular are NameJet, SnapNames and Pool.com.
Once the domain name has expired, these services will try to acquire the domain name for you. Backordering costs are usually $69. However, if a domain name is backordered by more than one person – which happens a lot – then it may be put up for auction, where ultimately the highest bidder will own the domain name.
The Future of .COM domains
With the emergence of apps, new gTLDs and the increasing influence of Google on the way people access information, you may be asking whether .COM domain names, and in fact domains in general are going to be worth anything in the future.
It’s a good question, and I can only answer from my point of view based on evidence and sales. If you take a look at DNJournal.com, you’ll see that every single week there are high priced domain name sales reported (there are many more unreported). Every year there are multiple million dollar sales – there were 11 reported sales of over $1m in 2014.
As for domain sales over $100,000, there were 73 reported sales in 2014. That number seems to be rising year on year. According to IDNX.com, the leading domain pricing index, domain names have gained 25% in value over the last year.
With the emergence of new gTLDs, I see premium .COM domain names becoming even more valuable. Less valuable .COM domain names may continue to decline in value as small businesses have more options when it comes to TLDs. As for apps – there will always be a need for domain names for websites and promotions to go alongside those apps.