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Domain names can be a great investment

Buying a Domain Name as an Investment

Some domain names can be worth a lot of money, especially some of the memorable .com or TLD domains. For example, at the time of this publication is currently on the market for 150,000 US dollars, is 10,000 GBP and is 60,000 GBP.

TLDs stands for top level domains and these typically include .com, .org, .net plus the country domain extensions as well ie, .eu etc. With these high prices in mind – would a domain make a good investment?

The answer to this question is probably yes, but all investments carry risk and it is the same for domain names. What is popular today may not be so popular in a few years time.

A name such as is less likely to suffer from time decay in terms of value because it is a word used to describe a general category ie business. Another thing to consider when buying a domain name is how often the keyword is searched for – for example there are more searches for “business” than say “business consultant”, which is a sub-category of “business”, so obviously “” would be worth more than “”. “” is also shorter and more memorable than the latter and hence it is more valuable.

Incidentally, “” was once the most expensive domain name ever sold – it sold for $7.5 million in 1999.

Currently the most expensive domain name ever sold was “” – that sold for $16 million in 2009.

Other domain names may suffer in value over time if for example the particular domain name niche is fashionable but becomes unpopular or is superseded in the future. Try to think of what internet users will be searching for and ask yourself the question “Will this domain name be popular in a few years time?”

One thing to remember though is that the internet is here to stay and it is going to get a lot bigger than it currently is. Every single website and email address that exists has a domain name, so it is simply a matter of supply and demand – when there is an increasing demand for a product then the value of that product will be become more expensive.

Buying a domain name for a business can be a very good investment and should not be taken lightly.

Initially the cost could be expensive, but the great thing about owning a good domain name is that after the initial cost there is only the annual renewal fee which in most cases is just a few pounds.

Having a great domain name for a business will pay for itself over the long term . A Good domain name for a business should be short, memorable, appropriate to the business and not include hyphens or other symbols other than letters – possibly a number in some cases.


If you are interested in purchasing a domain name purely as an investment then ask yourself “Is this domain likely to remain popular in a few years time?”

A useful tip is to list your domain on a website like Sedo (see the links on this page) as soon as you aquire it, so that you can receive offers from time to time from interested parties, rather than let it gather dust.

Let people know that it is on the market for the right price and set yourself a realistic target price.

If you are buying a domain name for a business, get the best that you can afford.

Stick to .com, .net, .org and the country extensions. Other extensions may become popular in the future ie .web, but for now those are the extensions that are the most popular.

Domain Name Guide