Domain investment is an interesting business and can generate significant profits if executed wisely. With good research, the right strategy, and patience, you can build a valuable domain portfolio. However, it is important to remember that domain investments also involve risks, and there are no guarantees of profit.
Before starting a domain investment, consider it carefully and make sure you understand the market and relevant trends. With the right approach, domain investments can become a profitable source of income in the ever-expanding virtual world.
Since the pandemic period has undermined life on this earth, many people have competed creatively to start digital businesses to earn rupiah coffers. Some digital business ideas are trying an online shop or dropship business, writing digital content, becoming an influencer on social media, and creating a website or blog.
Now, this raises a business idea that Erzedka Friends can try. The idea is a domain investment! Domain investment is still rarely done by most digital people, making this business a unique and worth trying profit opportunity.
Therefore, this article will comprehensively discuss what is a domain, what is domain investment, the benefits you get, and tips on domain investment. Come on, just check the full discussion below!
What Are Domains?
A domain is a URL or site link that functions as a website address to make it easier for internet users when they want to visit a particular site. In general, a domain address consists of a URL that starts with "www", then the website name (eg Erzedka ), and ends with a domain extension (eg .COM, .ID, .TECH, or others).
Domain addresses are usually written by internet visitors in their browsers. Domain has subdomains to describe a more specific website address. In the wilderness of the internet, the main function of a domain is often identified to make it easier for internet visitors so that they can enter various sites without having to memorize and type in the IP address of each website in a browser.
The most important and mandatory difference between domains and subdomains is that domains can stand alone, while subdomains cannot stand alone (requires a domain). Another difference to keep in mind is that in order to subscribe to a website domain, Erzedka Friends must pay a certain fee. Meanwhile, subdomains can be obtained free of charge without requiring additional costs.
Besides having subdomains, domains are also divided into three types based on their level. The three types of domains are Top Level Domains, Second Level Domains, and Third Level Domains.
What is Domain Investment?
Domain investment is a business activity by buying domains and then reselling them when the price starts to skyrocket. In the sense that you will get double profits because the domains that you bought in the previous few years have a much higher price when they are sold in the future.
Currently, the investment instruments that are very popular with young people are stocks, gold, property, and dollars. However, it turns out that investing in domain names is also tempting. It has been proven that in 2020, there was a domain sale and purchase transaction at a fantastic price at Business.com.
In 1999, the price for the business.com domain was only US$7.5. However, 8 years later, in 2007, the domain was sold to RH Donnelly for US$345 million. Wow, the price immediately soared fantastically, didn't it just take eight years?
Business.com domain buying and selling transactions were finally placed at the top of the list of most expensive domain name sales in the history of the digital world.
The facts from the picture described above show that domains can be very promising investment instruments. Another fact that supports this statement is that in 2022 there will be a 15% increase in domain transactions worldwide compared to 2021.
Knowing this, coupled with the increasingly rapid growth of the internet, it is certain that domain name investment will be a bright business prospect. Because the number of websites will continue to grow every year, so that domain enthusiasts will continue to exist and the number will increase.
Is Domain Investment Profitable?
Maybe up to this point, Erzedka Friends still doubts whether the domain business is really that profitable? What is the proof?
So, in order to answer your curiosity and doubts, let's take a look below at some of the most expensive domain purchase transactions recorded in history:
- Business.com sells for US%345 million
- LasVegas.com sells for US$90 million
- CarInsurance.com sells for US$49.7 million
- Insurance.com sells for US$35.6 million
- VacationRentals.com sells for US$35 millio
- PrivateJet.com sells for US$30.1 million
- Voice.com sells for US$30 million
- Internet.com sold for US $ 18 million
- 360.com sells for US$17 million
- Insure.com sells for US$16 million
When you look at the list above, of course you can imagine how many times the profit you can get if you buy a domain now and then sell it in the next few years. But don't be hasty. Erzedka Friends must also use your sense of business to observe and look for what kind of domains will be popular and in demand in the future.
A little leak, the most popular domain extensions and currently the prima donna are .COM and .ID. If your target market will be foreign companies, then you should choose a .COM domain name as your investment target. However, if your target market is local businesses, then you should invest in a .ID domain name.
Moreover, the Indonesian Internet Domain Name Manager (PANDI) stated that they are targeting an increase in .ID domain users by up to 38 percent in 2024. This statement is proof that in the future website users with .ID domains will increase so that the business prospects are bright.
Strategy to Start a Domain Investment Business
The following will present some tips and strategies before starting a domain investment so that the business you are running can be optimized. Come on, see more details below!
1. Selection and Select Top Level Domains with Good Prospects
The first tip in terms of domain investment is that you have to have a sharp business sense. Because accurate selection is needed so that the purchased domain can become a bright and prosperous prospect in the future.
So, as stated in the previous discussion, Erzedka Friends should choose domain names with potential Top Level Domains such as .COM and .ID. The .COM domain is still at the top of the standings for the order of the most popular domains. Meanwhile, the .ID domain promises good prospects for the Indonesian market because the price is predicted to continue to increase every year.
2. Always Monitor Market Conditions and Future Trends
The digital world does have very fast and dynamic changes. It is also undeniable that website domain trends will continue to experience changes and updates at every turn of the year.
Therefore, Erzedka Friends needs to conduct in-depth research on timeless matters (something that continues to be in demand and timeless), the latest events, cultural trends, technology, and trends in the world of industry and the internet.
Because changes in trends and market conditions can also affect changes in certain domain interests. To be able to always monitor and update on current market trends and needs, Erzedka Friends can take advantage of a tool called Google Trends, like the example described below.
Based on data from Google Trends for the past 20 years as seen in the image above, we can conclude that the topic "Crypto" is currently hype and trending. The search graph started to climb sharply starting in 2020 when the pandemic started.
From this data, maybe Erzedka Friends can imagine the idea of buying a crypto-related domain name with the hope that when it is resold in the next few years, the selling price can increase dramatically and generate profits.
There are a few more tips for Erzedka Friends who want to check whether a domain has been used on the internet or not, so you can visit the WHOIS domain.
3. Using Aged Domains
One of the tips for choosing a good domain name is to use an Aged Domain. Aged Domain is a domain name that has previously been used by another website user, but the website user decided to sell it for some reason.
If Erzedka Friends decides to choose Aged Domain as an investment property, there are several benefits that can be obtained. Among them, Aged Domains usually have more mature keyword optimization and domain authority. Apart from that, Aged Domain also has qualified SEO optimization so that it is most likely that the website can rank on the top of the Google SERP quickly.
There are quite a lot of enthusiasts from Aged Domain to date. Some parties are targeting Aged Domain to be used as a Private Blog Network or money site. To find out which domain names are classified as Aged Domains, you can check the full list of domains via Odys.global or Domcom.com.
However, it should also be noted that actually aged domains are different from expired domains. In Aged Domains, extensions and also domain names are still active so that they can be used by other users. Whereas the Expired Domain has no active period anymore so the extension and domain name cannot be used by other users.
4. Choose a Trademarked Domain
Choosing a domain that already has a trademark and is recognized in the general public is indeed very profitable if you want to invest in a domain. Because usually these domain names are well known and have strong brand awareness.
So that you can immediately get a great opportunity to get multiple profits if you sell the domain name. But Erzedka Friends also needs to consider the risk of choosing a trademarked domain. Because the risks faced will be quite large if you run this strategy.
One of the risks that should be watched out for is plagiarism legal cases because they are considered to have committed theft of the trademark of the previous company that was officially registered.
Even if the company that owns the trademark is no longer in operation, they can still make claims against other individuals or companies trying to re-register the same or similar domain name to theirs.
Conclusion
During a pandemic like now, almost all people are starting to find it difficult to cope with changes in existing economic patterns. Finally, many of them racked their brains to get additional income for the stability of cash flow.
Actually, in the digital era like now, there are many opportunities to do business to increase financial coffers. Starting from building e-commerce, becoming a podcaster, creating a blog, to investing in domains. Domain name investment may sound foreign to some Erzedka Friends. But it turns out that this business opportunity is able to present very lucrative profits.
Domain investment is a business activity by buying domains and then reselling them when the price starts to skyrocket. One of the proofs that domain investment can provide abundant income is the purchase of the most expensive domain name from Business.com for US% 345 million..
If Erzedka Friends is starting to look at investing in domain names as passive income to gain rupiah, here are some tips to get started.
The first tip is to choose a Top Level Domain (TLD) with good prospects such as .COM and .ID, always monitor market conditions and future trends through Google Trends, buy Aged Domains, and choose domain names with trademarks. Well, that's enough discussion this time about domain investment. Hope it is useful..!!