Is there money in online business? Some say no. But a recent Business Insider article listed the top-selling domain name sales for 2012, with Investing.com heading the list at an impressive $2,450,000. Second place went to PersonalLoans.com at a cool million dollars. Apparently, the world of online personal finance management is booming, even in a down economy.
Some of the most expensive domain name sales of all time are:
- Cameras.com for $1,500,000
- Russia.com for $1,500,000
- Tandberg.com for $1,500,000
- Ticket.com for $1,525,000
- Dating.com for $1,750,000
- Computer.com for $2,100,000
- Candy.com for $3,000,000
- Vodka.com for $3,000,000
- Clothes.com for $4,900,000
- Toys.com for $5,100,000
- Beer.com for $7,000,000
- Porn.com for $9,500,000
- Sex.com for $13,000,000
From this list, one could gather that vices, and the financial services used to fund them, are very lucrative in the online world. Online shopping for toys, clothes, food, and sweets, and entertainment, such as computer equipment, gambling, and pornography are all high on this list. These industries generate so much revenue that they warrant astronomical price tags — just for their domain names.
Lower-market domain name trading can also turn a profit, even if you’re not an Internet guru. Clients have told me about their experiences purchasing a domain name, putting up a website, and selling the domain name in a year’s time with a 50-100% profit. While I personally haven’t tried domain flipping, it seems fairly straightforward: buy and hold a domain until it increases in value.
Some people choose to invest in the quality of a domain name by improving the SEO and marketing for that domain during their ownership, but this isn’t always necessary. In some cases, if you happen upon a domain name or a variant of a popular domain name that’s available, you can snatch it up for cheap and hold it until someone comes looking for it with cash in hand.
Many companies will purchase variants or common misspellings of their business domain name to gain the traffic that these domains could potentially direct to a competitor’s website. Others purchase multiple domain names for the same business in order to create a funnel that directs a large amount of visitors to a particular website.
This means more businesses are looking for ways to capitalize on domain names. If you happen to own a domain name that’s pulling traffic away from a business, that business may offer to buy the domain from you just to stop clients from looking for products and services elsewhere.
These days, the Internet is the go-to source for nearly everything from comparison shopping and product reviews, to dating and social interaction. With no slow-down in sight, it seems like online business is a wise investment for the smart entrepreneur.
What do you think of domain name flipping and investing as a source of income? Have you tried it, and if so, how did it go for you?