Domain investing — the buying and selling of website domain names — has become a popular way for entrepreneurs and digital-savvy individuals to earn online income. Much like real estate, domains are pieces of digital property that can appreciate in value over time. Whether you’re looking to flip names for profit or build long-term value, here’s a basic introduction to how it all works.
What Is Domain Investing?
Domain investing involves purchasing domain names (like example.com) with the goal of selling them later at a higher price or earning revenue through other means, such as leasing or parking. Investors identify names that may become desirable to businesses, brands, or individuals in the future.
How to Buy and Sell Domains
1. Buying Domains
To start, you’ll need to register domains through a domain registrar — companies that manage domain name reservations. Popular registrars include:
- GoDaddy
- Namecheap
- Google Domains (now part of Squarespace)
- Dynadot
Prices typically start around $10–$15 per year for a standard .com. However, premium domains — short, keyword-rich names that are already owned — can sell for thousands or even millions on marketplaces like:
- GoDaddy Auctions
- Sedo
- Afternic
- Dan.com
- Flippa
- DomainerExpo
You can even register your own domain name if you like.
2. Selling Domains
Once you own a domain, you can list it for sale on the same marketplaces or directly to potential buyers.
Tips for selling:
- Set a realistic price. Check what similar domains have sold for using tools like NameBio.
- Create a clear landing page. Point your domain to a simple “This Domain Is for Sale” page with contact info or a buy-now button.
- Stay patient. Many domain sales take months or even years before the right buyer comes along.
What Makes a Good Domain Name?
Not all domains are created equal. Here are key qualities that make a name valuable:
- Short and memorable: Easier to type, recall, and brand.
- Keyword relevance: Names that match popular search terms or industries (like bestloans.com or nyclawyers.com) tend to attract buyers.
- .com extension: Still the most trusted and in-demand domain ending.
- No numbers or hyphens: They make the name harder to remember and brand.
- Brand potential: Names that sound professional, catchy, or future-proof (like Zaply.com) have higher long-term appeal.
Domain Parking: Earning While You Wait
While holding onto domains, you can make some passive income through domain parking. This involves displaying ads on your unused domains so you earn money each time someone visits and clicks.
Services like GoDaddy CashParking, Sedo Parking, or Bodis can automatically populate your parked domain with relevant ads. Though earnings are usually small unless your domain gets regular traffic, it’s a great way to offset renewal fees while you wait for a buyer.
Getting Started
If you’re new to domain investing:
- Start small — buy a few names you personally believe in.
- Research market trends and past sales.
- Be patient — domain investing rewards those who play the long game.
Whether you’re flipping names for quick profit or building a portfolio of digital assets, domain investing can be a fun and potentially lucrative way to participate in the digital economy.
Pro tip: Focus on quality, not quantity. A handful of great domains is often more valuable (and manageable) than hundreds of low-quality ones.