Buying a domain is like buying digital land. There are two primary ways to increase the value of your domain. The usual way is brand your site and name to increase traffic coming into your site. If you don’t want to do all that work, you can just buy and hold onto it until it’s worth something in the future. This method only works with domains that have follow these characteristics:
- Very few characters (2 character domains like fb.com are worth millions).
- Easy to remember (Names like 123.com or abc.com are both short and easy to remember).
- Dictionary words (Food.com with content about food rank high with search engines and are very easy to remember for visitors to come back in the future).
Early purchasers of domains who purchased 2, 3, and 4 character .com names, are probably very wealthy now. I specifically mention the TLD (Top Level Domain) .com because it is the most popular. Other TLDs like .org and .net are not normally used for commercial business and are not ranked as high by search engines. The value of a domain is made of different factors, but it can generally be calculated by character length and website traffic.
If you want to be the next Donald Trump of digital real estate, you have to get into the game and start purchasing domains. Currently, the fees to maintain most domains names are approximately $10 per year. So it is very cheap to get into, but you have to be able to drive traffic to your site for it to be really worth anything. You can visit websites like GoDaddy.com, Dreamhost.com, and NetworkSolutions who specialize in web hosting and helping you purchase domains.
Top 10 Domain Sales of 2012
|#||Price||Domain||Purchaser||Purchase Date||Global Rank|
|1||$2,450,000||Investing.com||Fusion Media Limited||November 1, 2012||10,595|
|2||$1,000,000||personalloans.com||N/A||February 1, 2012||1,446,718|
|3||$600,000||saturn.pl||NetArt Spolka Akcyjna||September 1, 2012||20,410|
|4||$500,000||freewebsite.com||Freewebsite, LLC||November 1, 2012||126,908|
|5||$500,000||challenge.com||Private||October 1, 2012||190,653|
|6||$500,000||WebHosting.co.uk||Pawel Ciszewski||October 1, 2012||570,810|
|7||$500,000||Jackpot.com||Palek International Ltd||April 1, 2012||595,486|
|8||$350,000||GiftBasket.com||Gabby Investments||November 1, 2012||912,698|
|9||$325,000||VI.com||Josh Sackman||October 1, 2012||263,763|
|10||$325,000||bj.com||Finlead AG||June 1, 2012||594,434|