Domain investing, often called domaining, is simple to describe and hard to master: buy names that businesses will want, hold them at a low cost, and sell them at a price that covers your purchases, your renewals and a profit. It is a real business with real risks. This guide covers the fundamentals.
Key takeaways
- Most names in a portfolio never sell; the few that do must pay for the rest.
- Renewal fees are your biggest ongoing cost. Every name must earn its place.
- Buy quality over quantity, especially at the start.
- Avoid trademarks completely.
How domain investors make money
Most profit comes from selling to end users, businesses that will build on the name. Some investors also trade with each other at wholesale prices, earn small amounts from parking pages, or lease names. A typical portfolio sells only a small share of its names each year, and that share must cover the renewals of everything else.
The renewal maths
Suppose you hold 100 names at an average renewal cost of 12 dollars: that is 1,200 dollars a year before you buy anything new. If you sell two names a year, they must bring in more than 600 dollars each just to break even. This simple calculation should guide every purchase.
Where to find names
- Hand registration: new names nobody owns yet. Cheap, but good unregistered names are rare.
- Expired and dropping names: names whose owners did not renew, often sold at auction.
- Marketplaces: other investors' listings and auctions, where you can find underpriced names.
- Private purchases: approaching owners of unused names directly.
What to buy
| Type | Why buyers want it |
|---|---|
| Short dictionary words | Scarce and universally useful. |
| Commercial keyword phrases | Match what customers search for. |
| Brandable names | Startups need memorable names; see our brandable guide. |
| Geo + service names | Local businesses such as a city plus a trade. |
| Emerging trends | Higher risk, higher potential. |
Pricing and selling
List every name with a clear Buy Now price or a minimum offer. Names without a price get fewer enquiries. Use the valuation tool and comparable sales to guide prices, then adjust based on enquiries. Verify ownership so your listings carry the Verified badge, and reply to offers quickly.
Manage your portfolio like a business
- Track purchase price, renewal date, listing price and enquiries for each name.
- Review the portfolio before renewals; drop names that no longer earn their place.
- Use the AIODomain portfolio tools to sync names from your registrar and see what is about to expire.
- Protect your registrar accounts with strong passwords and two-factor authentication.
Beginner mistakes
- Registering hundreds of weak names in the first month.
- Buying names that contain trademarks, which can be lost in a dispute.
- Pricing every name at a fantasy end-user price and never selling.
- Forgetting renewal costs and the long holding periods.
- Paying sellers outside a protected checkout; read our scam guide.
Frequently asked questions
How much money do I need to start?
You can start with a few hundred dollars, but spend it on a handful of good names rather than many weak ones, and keep money aside for renewals.
How long does it take to sell a domain?
Anything from days to years. Good investors plan for long holding periods and price their names accordingly.
Is domain investing passive income?
Not really. Research, pricing, negotiation and portfolio reviews take regular time.
