Is it a good time to invest in domains with generic keywords?



Have you ever thought of investing in domains? It could be a good idea. It depends a bit on your goal and your financial possibilities.

I'm going to be honest with you. I asked myself this same question 2 or 3 years ago. I came to the same conclusions as today and it probably wouldn't have been a good time to invest in “asesorfinanciero.es”, “electricista.com”, “comprarvuelo.es” or similar. These names have value because they have the keyword within the domain and exist only once for each type (.es/.com/.net/.org…).

I've been investing in domains since 2005 and not really with much success. One of my worst decisions has been to invest in the ".eu" that seems to be useless. I had more hopes with “.es” but it seems that “.como” will be king and Spain is not following the example of countries like Germany giving preference to national domains.

The market for buying and selling domains is not experiencing its best moments. There are still people who earn money in this business, but even in Spain we have a dozen or a little more.

Why invest in domains

Despite my bad experiences, I still see a lot of sense in investing in domains. The fact that the subject has not gone well for me only means that the subject is not necessarily very good for me. It makes sense to invest in domains if you look at it from different angles.

  • Resale at a higher price : it is a way of investing. Don't expect short-term miracles. It is a market with very little liquidity and sometimes it depends on the luck factor if you sell a domain or not. You have to have a little experience to detect investment opportunities and sales opportunities.
  • To create an easily memorable brand : one of the challenges when choosing a good name for a company is that it is easily memorable. A test for this is to say it on the phone and that the other person can memorize it without having to spell it. Domains with generic keywords are ideal for this.
  • Reach the top 10 of Google faster : although in weight it has recently lost something, the keywords of the domain are still a key factor when it comes to positioning a website in the top 10 of Google. E.g. If you want to appear with the search “financial advisor” in Spain, it is ideal to have the domain financial advisor.es. In this case, it does not matter if you do it to set up your own business or want to generate income through affiliate marketing .

How to invest in domains without breaking the bank

I don't know what tomorrow will be so I have no idea if domain prices are about to go up. Even so, I consider that it is a good time to invest in domains, whether you do it to speculate or to set up your own project. It is unlikely that you will make a fortune in this business, but with a bit of luck, a sale could pay for a little vacation or some other whim.

Average selling price for domains on Sedo.com

1. Do not risk too much : risk only what you can afford. Keep in mind that if you invest 300-500 euros or whatever, it is unlikely that you will be able to resell the domain at a profit in less than 1 year. It is a market with very little liquidity and if you do not put your batteries in contacting potential buyers, it will take time to bring you profitability. With this you need patience.

2. Diversify the portfolio but do not go overboard : the ideal is not to invest all your money in just 1 name. Try to have at least 3 different domains to diversify a bit. In the ".com" prices are still too high. I would bet on a “.es” domain with a generic keyword for less than 1,000 euros and then sell it in 1-3 years for twice as much. Don't start registering hundreds of free domains like crazy. Remember that the domains must be renewed every year, which entails a cost of 5-10 euros for each one of them.

3. Put the domains up for sale : if you want to sell domains, don't wait for them to contact you. You can use your blog as a platform, but if it doesn't fit thematically, don't expect to find many buyers that way. It is best to put it up for sale on platforms like Sedo , which are the world leaders in buying and selling domains. A good description and putting it in the right category is often helpful to get more visibility in front of potential buyers.

The said. Do not wait for millions of euros because now you have decided to be a domainer . Very few make money from this business and it is very likely that you will not either. It is not to discourage you but only so that you are careful and have the right expectations if you put up with it.

Do you think it is a good time to invest in domains?

If you are interested in going deeper into the subject, I have found a book on buying and selling domains on Amazon (I am an affiliate) that looks good (3.08 euros):

GEO Domaining: How To Make Money With Local Domain Names!