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Getting rich off domain name traffic

Expert Mod 100+
P: 2,327
I ran into this very interesting article today about people making money off domain names.

The business of domain names is hot! I never realized how hot it was until this article by Paul Sloan at business2.0.

Here are the main points I picked up:
  • Keyword domain names are the hot thing. Many are selling at multiples of 5-8x annual revenues.
  • Prices can start at $5k all the way up to millions of dollars
  • Many domain portfolios(thousands of domains owned by a group or individual) have sold for $20 - $180 million dollars
  • Type in domain traffic accounts for 10-14% of Google and Yahoo's paid search business. Paid search is $9 Billion market, which makes type in domain worth about $90-$130M
  • Domain name speculators have a industry trade group called "Traffic". A person that makes money via domain names is called a "domainer".
  • There is a fund/company out there called Internet REIT, that spends more than $250 million buying out domain names.
Here is the link to the article: Masters of their Domains

How large is your collection? What valuable domain names do you hold in your porfolio?
Jan 11 '06 #1
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2 Replies

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We have a portfolio of 30 domains. Two of which went live as web based services. The other 28 were just recently acquired, all in different markets. The reason we acquired them was because of our first and taste of rising domain prices. We had to pay a lot on the two domains that launched as web based services.

This article goes to show there is a strong market for domains.
Jan 13 '06 #2

P: 2
Yeah you can make $1,000,000 if you know how to!
May 8 '06 #3

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