Domain Investing

Buying and trading domains requires a range of analytical skills, tools and research into various fields such as economics, technological development, semantics, etc. It also requires a deep understanding of the mechanics of the market for domains and keywords and of the forces that drive the market on a daily and long-term basis.

For example, the word “insurance” is a great single and/or combinational keyword because insurance is usually an expensive service and advertisers pays high fees for every new customer.

All resulting combinations, among them many new ones such as “bankinsurance”, “helicopterinsurance” and “domaininsurance”, will be of equal value. “Laptop” has become an acceptable word; however, the technology may not be around much longer and the word can hardly be used for anything new.

There are, on the other hand, many domains that will not reach their full potential for some time. “Herpesvaccinations.com” is of little value today but very likely will turn into a true goldmine once such a product has entered the market.

The .com domain represents by far the largest part of the business and yields the highest prices. There are, however, many other ccTLDs (country code TLDs) constantly increasing in value. Take India for example: it’s the country with the world’s second largest English speaking population, yet it has many TLDs where domains may still be registered at low rates.

Before purchase, we subject a portfolio or domain name to careful evaluation. In-depth analysis includes assessing current advertisers to gather information about the value of particular keywords. It also requires calculating the revenues that can be achieved through the corresponding domains and keywords, in order to evaluate the proper buying prices and the potential return on investment. Scores of automated tools for analyzing domains already exist on the market; they evaluate hundreds of factors such as domain age, page rank, search volume, and backlinks.

Having opted for the most conservative model available, we are using some of the most renowned appraisal companies in the world today — SEDO, Moniker, Estibot and Godaddy, all of which are accepted by the IRS and the Canadian tax authorities — to guarantee quality evaluation of our domain portfolio.

Once a domain is purchased, say “vehiclerepair.com.”, we use SEO in order to raise the domain’s Web popularity, so that each time a user searches for the topic or item, our domain will be highly listed in the search results of Google, Yahoo, Bing, Ask etc. We receive money for each click, yielding between five and 100 percent of the domain’s purchase price each year.