Domain Name Speculation

Have you even purchased a domain, only to end up sitting on it? How about sitting on it only to have someone make an offer on buying from you? If this has happened to you, then welcome to the wild, wacky world of domain name speculation. As it sounds, this is a lot like other forms of investment speculation but with a lighter investment and the potential for a much larger return. The counter to this, is that most of the time the domains you end up with when buying them new, are worthless.

My own experiences

The experience I have in this areas is very light. While I have owned more than 30 domain names at a time, I have only had offers on two. Both of these domains were clever in that they were two word domain names with words like computer and media. Speculators would agree that for two word domains, those might have some real value. Of those two domains, I let one of them expire. After it expired without me renewing it a few years ago, the BBC had it for awhile and now someone else is listed as its registered owner. The other domain, is extremely valuable and I’m not going to disclose it here. Let’s just say it’s been offered on a multitude of times. Again, two domains offered on, one receiving multiple offers. And this is out of 30 domains.

Domain Name Speculation
Photo by ivanpw

Is this worthwhile?

My honest opinion is that for the time you can spend gambling on domain names, you’d be much better off building online properties instead. This way instead of just offering a domain name for sale, you can provide something that is receiving regular traffic instead. This is what I call a value added proposition.

My advice is to look at what is hot right now. Work on building content or e-commerce websites. Perhaps you might look into offering affiliate products or becoming the next WiseGeek? Whatever path you take, the odds are in greater favor with content attached to that domain name. And building up a good reputation for that domain isn’t going to hurt much, either.

If you prefer to stick to general buying and selling of domains, understand this. It’s difficult and a bit of a learned skill to make any real money at it. To do it well, I’ve been told that you must buy domain names worth something from others and then either resell them for more, or sit on them. Another new approach might be bidding on ideas with new domain suffixes. Stuff like .TV among others, could potentially be profitable.