Industry of Domain Names
In order for the Internet to function properly, there must be a Domain Name System, DNS. It’s a system that facilitates the use of names instead of IP addresses for every device or service connected to the internet. The DNS ensures users and the internet interact with ease. With the dynamic growth of the internet, the DNS also must cope dynamically to meet the needs of users. This has happened over the years and it has led to an industry of domain names.
This industry is solely responsible for the emergence of the trends in the domain names such as the Top-level Domains, TLDs. TLDs are of two types, country code top-level domains, ccTLDs and generic top-level domains, gTLDs. Country code domains represent a country and also some states whereas generic domains can be used for organizations i.e. they have .org, .net and .com.
How to get a domain name
All domain names must be registered through a domain name registrar. The registrar in turn liaises with the internet body that regulates domain names. So, in order to acquire a domain name, you must register through a domain registrar.
Registration requires a fee which can vary depending on the chosen registrar. Also, other fees are required to keep your domain on to avoid expiry. You always want to maintain your domain name, and prevent it from expiration.
Most expensive domain names
To prove the domain name industry is really worth your investment, here is a list of the top five most expensive domain names according to web experts.
- LasVegas.com – $90,000,000: Sold at $90million, this is the world’s most expensive domain. This domain offers tours, accommodation, and bookings in Las Vegas. What a coincidence with this destination.
- CarInsurance.com – $49,700,000: Sold without any content, QuinStreet (which is one of the largest marketing services companies on the Internet) bought this domain for $49.7 million and this was for the name only. It was bought solely for customer lead generation.
- Insurance.com – $35,600,000: This domain was also bought by QuinStreet
- VacationRentals.com – $35,000,000: This domain was bought for $35 million in a spiteful business move to stop Expedia from getting it by the founder and CEO of Home Away.
- PrivateJet.com – $30,180,000: Nations Luxury Transportation, LLC (Nations) purchased the domain for the above price.
In the industry of domains, the transport, insurance and the finance industries are in the lead. In national markets, Germany’s Shopping.de domain is the costliest.
How to profit off of domain names
The common known way of making profits off domain names is through buying and selling domain names. Of course, selling at a higher price than the buying price. Like any business, you must own the (product) domain. You don’t have to draw traffic, design a website on it or post any content unless you want to invest on it and sell it later. In order to invest successfully, it’s a good practice to start with what you know. i.e. local domain names for starters. From there, you can look into new Generic top-level domains of the world.
Importantly, don’t just buy any domain, choose a domain name that will sell. The name can be generic representing certain products. This is similar to product branding. Once everything is set and it’s time to sell, the easiest market is to list your domain/domains in sites where they are accessible by the public. These sites have features and paid options to ensure your domains sell. Other ways include social media platforms.
Another known way is to park your domain through a domain parking service. If you do not have any content on your domain, the parking service place a dummy page and populates it with ads. With all the traffic available at the parking services, a big percentage of the generated revenue goes to you. This is the best method for domains with popular keywords.
What makes a domain name profitable?
Like other business ventures, in order to make a profit, some guidelines need to be followed. For domain names, they are:
- Profitable niche name for branded products. The name should be short and understandable.
- The domain name should be generic for a non-branded product.
- The target audience should be considered. Local dealers should invest in local domains while global ones should go for global domains.
- A great domain portfolio. A pretty portfolio attracts more customers.
- Use of hot Keywords. This is essential for parking and page ranking in SEO
With the rise of domain name industry and many more emerging trends in domains, investing in this industry can turn out to be a lucrative business. Like other business ventures, all business factors including risks should be put in place. When done properly, the returns are very high. Most importantly, your investment should not strain your budget. Don’t forget to bone up on the top 10 blogging trends of 2017, as well.