According to Sedo.com featured article – currently average domain name worth is US $2,500. This means that you can struck a bargain when you buy domain name in sub US $1,000 range. However there are few things you need to consider before opening your wallet and investing in domain name. We have already covered the basics of domain name investment, today we will talk about how not to get burned by dodgy players in domain industry and more important where to pay attention when you are investing in domain names.
From another source – it seems Google.com changed algorithm for site search positioning is really hurting organic name searches (the searches conducted on a keywords which bring domain name having those keywords in the name itself). This basically means that domain name parking is on the verge of extinction because Google.com is the biggest player in the search engine field and other providers usually follow its suite. For us mortals this means that there is nothing lucrative left anymore in the sole searching and buying keyword based domain names. This is actually good news, free ride has been cancelled and one need to invest time and effort in domain name to make it profitable. It is also a sign of domain name industry growing up.
Back to the subject, domain name investment is not something you would do on a hunch or when you are bored. We have learned in previous article that research is the most important aspect of domain name investment. Once researched and you have found out potential name with the worth you are seeking for (either brandable, your niche keyworded or otherwise supplemental to your business plan), it is time to start negotiations with the seller.
First rule of the thumb, for anything more expensive than US $1,000 use escrow services like Sedo.com or Escrow.com. Do not get fooled by the seller that this step is unnecessary because they have good reputation. Many people got burned doing suspicious credit card transactions on a domain name which seller was not even owner of. Sure you can always charge back your credit card with documented reason that you never got the domain name you have payed for but why would you have such stressful endeavor in the first place. The reputation of domain name seller does not cover security you will get when you use Sedo.com domain name transfer escrow services. More about domain name escrow services you can find in our previous article. Suffice to say that escrow is a process where third party (Sedo.com for example) holds your invested money for domain name until seller transfers complete ownership to you. In a case of dispute money is returned to you and in case of success money is transferred to the seller account.
Second rule is that you need to make sure that registrar domain name seller use is reputable. Since ICANN and thus Verisign opened market for .COM and .NET registrars there are many different kind of registrars in the wild. Most notorious ones tend to keep you in their hand and squeeze every last cent for registration fee providing no support and being a general pain in the ass when you want to transfer your domain name away from them. If domain name seller use such registrar (it is easy to spot, most used registrars with reputation are GoDaddy.com, Moniker.com, NetworkSolutions.com) do insist on domain name transfer. We have covered the difference between domain name transfer and push.
Final rule is that you immediately put content on the site you have bought. This can be simple page containing future site use but make sure you put relevant keywords you intend to use in the site content. More on the subject, never leave one page site content longer than few weeks this is the time when you need to put reliable and quality content of your business up for the world to see.