Domain Investment Advice

Valuable domains are short, memorable, distinctive, easy to spell, easy to pronounce and usually .com.

Look for Good Branding Potential

Domains with good branding potential have high value potential.

A good brand name is:

- Easy to pronounce.

- Is distinctive.

- Must be easy to recall.

Always Buy High Quality

Always look for high quality domains, be picky, and don't compromise. Only high quality domains will hold their value or increase in value. Don't be tempted by domains that are "nearly" right.

Buy High Quality Extensions Only

Having a high quality extension is really important. In practice, this means the .com, and maybe in some cases your country code top level extension.

Don't think that buying good keywords in poor extensions is going to make you money.

Buy Slowly

Do not rush to buy domain names. Don't buy lots of domain names before attempting to sell some of them first. This advice is especially important for newbies, who can easily get carried away with buying domains thinking they are on to a winner, without trying to sell any of them. When they do try to sell, they might get a nasty shock!

Actively Market Your Domains

To sell most domains, you will need to actively market them. Contacting potential end users by e-mail, or even better letter, is important to help you make sales. You can also market them online on domain marketplaces, auction sites, domain forums and social media.

The Investment Case for .co.uk Made-Up Brandables

My definition of a "made-up brandable" domain is one where someone has either made-up a new word, or put two or more existing words together to create a domain name that they feel has the potential to be used as a brand. Examples might be:

Made-Up Brandables - Completely New Words

xcelium.co.uk
scanna.co.uk
Accenture.co.uk
Verizon.co.uk

To be successful with the above, you will need to have the "knack" of inventing good brands. You'll need to be able to register domains that "sound right". A good knowledge of Latin may help, as a lot of made-up names are routed in Latin. This list of Latin suffixes may help you in making up names.

Whether it's possible to make this strategy work in the .co.uk, I could not say, as the .co.uk may not command high enough prices for such domains. I have seen a number of sites specialising in "made-up brandables" in the .com, e.g. BrandBucket, suggesting the strategy is viable for the .com, where resale values tend to be substantially higher than the .co.uk.

Made-Up Brandables - Combinations of Existing Words

CarHireGuru.co.uk
BreakdownCoverPro.co.uk
JobHunt.co.uk

A domainer may register such domain names in the hope that some day, someone will want to use that domain as their brand, i.e. a strategy of "hold and hope". Whilst not impossible, the chance of someone wanting to buy a given domain is pretty low. You may try and increase your chances by having a portfolio of domains in which case, when you do get an interested buyer, you are going to need to ask for a decent amount in order to pay for all the renewals on the rest of your portfolio and make the whole strategy pay off. To follow this strategy you are going to need the financial ability to afford all the renewals (possibly hundreds or thousands of renewals per sale), and be prepared to turn down offers until they are substantial enough to merit selling. You are going to need a high average selling price as the % of your portfolio that sells each year is likely to be very low.

The potential choice of brands available to a business owner is limitless, so that must cap the maximum value of a made-up brandable. If you are asking too much for your domain, a potential buyer can choose to make a different name up themselves. There is no scarcity value as is the case with dictionary or keyphrase generic domains.

Personally, I have had no luck in selling made-up .co.uk brandables. I have only ever tried registering a few, and it's not a strategy I follow any more. You only need one big sale to make it all worthwhile, and whilst that can happen, for me this "hold and hope" strategy does not seem worth the effort for the .co.uk.

Generic Niche Future Tech Domains

I would be very wary of generic niche future tech domains. These are unable to distinguish companies in the marketplace, and therefore they have no desire to buy them.

Want to learn more? Try these resources:

Domain Name Trading Resources

Domain Name Forums

 

Domaining Tip

Before you register too many domains, make sure you try and sell some of them. This will provide valuable feedback on the quality of the domains you are registering, and whether the demand for them is there in the marketplace.