Layman guide to domain name investing


What is a domain name?

A domain name is both the name of virtual estate and a pointer to its contents. For example taking Google.com – you have a catchy name but if popular culture has not taught you, you would probably have no idea what you can expect behind that nice name. On the other hand CheapJackets.com – it is a terrible domain name but you can be sure what you can find when you visit the site. To put it together, a domain name should be recognizible and partly denote its contents too. Good example would be JohnsonJackets.com if you happen to own a business with Johnson in its name and you are selling jackets or similar ware. The domain name is the first thing your visitors or potential customers will see and it is a first impression although some people argue that name is not that important if you have done all the other things right it is better to play safe and be sure that your domain name is good to start with.

Is IP address more important than domain name?

An IP address is like a postal number, it is associated with your domain name contents not the name itself. This means that an IP address is basically irrelevant in contrast to the domain name itself. In fact, if you are not the network administrator, you would have no need to remember or otherwise use an IP address in your normal work flow. Even the recent news of the IP address pool scarcity is just a technical jargon which does not need to concern you. In the near future changes are expected to the postal addresses of virtual real estates of the world but they are going to be transparent and you will only need to type or search for a domain name to get to the new address.

How can I value a domain name?

This is an important question and many people invest and drop an idea of investing on this first step. There are few important factors you need to watch for when you are going to value a domain name. As we have already discussed, domain name should be catchy and it need to show what to expect inside. You might ask how did Google come up all the way with just a catchy name and in 1998 very few people actually knew what does Google do. This is due to popularity boost, and you can also get there in time. However you need to know whether you are going to do a short or long term investment. In case of a short term investment your return will be less and you need to watch for already popular terms for your domain name. For long term investment you can actually get away with just a catchy name and start from there. In both cases, an unknown domain name entity has no measurable value when it is fresh. However if you are to buy already established domain name your initial investment is going to be much higher and you would jump in straight into domain development without need for publicity build up like with a fresh name.

Where can I buy valuable domain names?

For a fresh build up go directly to the source – domain name registrars. Have a notes of few ideas about domain names and see if any of them are free to purchase. Since there are over 80 millions of com domain names alone that are registered nowadays, chances are that you will need to diversify and make shortcuts in aspect of what you would like and what you will get. On the other hand, you can hunt for an expiring or already expired domain name which already has some traction and if it fits in your domain name idea you are in luck. This endeveour can be expensive mind you, because expiring and expired domain names are often auctioned and the prices can be high. We at Vastus Domains have a nice portfolio of domain names with quite affordable prices.