We have talked about the domain name industry a lot. We have also showed that there are many major players and stiff competition between them. Today we will talk about a smaller entity in the industry – a domainer.
Domainer is by definition a person having moderate to large portfolio (at least thousand) domain names which he/she holds for reselling or developing. Domainers are very often wrongly called domain name squatters. To emphasize; domain name squatter is a person or company using other person or company registered trademark to obtain monetary or other gain (bad PR for example). Domainers are people having registered domains in a hope of further reselling them for profit or making use of the name by developing a website or business.
Most successful domainers in the industry are often being introduced in various TV talk shows or newspapers. People owning 100,000+ domains (yes, over hundert thousand domain names) often have a whole company with many employees around the business. While most of domain names are just waiting for a buyer and in the meantime being parked to get some small change parking income, there are also domains being fully developed with their web business of sort.
There is no wonder if such a domainer around his primary business and his employees have million dollar or ten million dollar business venture. Well, count the parking “small change” if you will. Say that you get a dollar per domain name per month, this sums up to 12 dollars a year. Expenses are for domain name renewal (usually in 8-9 dollar range). So net profit on this name per year is around 3 bucks. Small change right? Wrong, multiply it with 100,000 and you will see the ballpark where the game is being play. That is at least 300,000 dollars on parking alone – net profit. And I was being very conservative about the parking income – such domains (getting domainer dollar per month) are usually being dropped by domainer because of the small profit margin anyways.
This however is not the only source of income for domainer. Selling domain names is the primary source of income. Domainer can and will list his domain names for sale on various auction house lists like Sedo.com. Since he has a good side business with parking and developed domain name business pouring in, he can wait years for the right buyer. So his price is no bargain too.
If you have an ambition to become a domainer my only suggestion to you would be to start small – to buy good names on backorders and invest low at start. We at Vastus Domains offer excellent low price domains to get you started.