Timing is of the essence when purchasing domain names. Domain names are a very unique product in the fact that the product doesn’t exist until someone creates it with a domain registration. Many people purchase domain names with the intent of reselling them for a profit to those who were too late to the game. The domain industry can be extremely lucrative for experienced trend forecasters and others who find themselves in the right place at the right time when buying and selling domains.
Domain investing is a niche market. The domainers who have been in the industry since the Internet began, have profited from selling premium one-word domain names for six figures and higher. Take, for example, Insurance.com, one of the highest recorded domain name sales of all time.
If you’re looking to become a successful domain investor, you need to understand how the domain market works. From understanding how to not infringe on a trademark to keeping a “paper trail” of all your interactions and conversations that have to do with buying and selling, make sure you’re following the proper steps to ensure your domain purchases and sales are legal and safe.