What is domain name investment? Let's talk about it all at once, including relevant terms

Domain name investment is a fairly simple concept: you register or buy a domain name with potential value, hold it until the right buyer comes along or the domain name is monetized, and then you can be patient and wait for opportunities to make a good profit.

What does domain name investment mean?

Domain name investment is a fairly simple concept: you register or buy a domain name with potential value, hold it until the right buyer comes along or the domain name is monetized, and then you can be patient and wait for opportunities to make a good profit.

In fact, there are many subtle differences between buying, selling, and monetizing domain names, but they are not as mysterious or arbitrary as you might think. There are two common misconceptions about domain name investment:

"All good domain names are already taken"

"It's hard to tell which domain names are valuable"

Both assumptions are untenable. The essence of domain name investment is the same as any other investment, which requires a combination of patience and perseverance, overcoming the learning curve, and finally receiving a return. For example: making a smart domain name investment decision this year may result in a six-figure profit in the next decade. You can make smart domain name investment decisions by browsing the investment guide on this page or other references, combining your own thinking.

1. Secondary market

Domain transaction service platform, after-sales market can have multiple market functions, such as: expired domain name and user auction, domain name pre-registration request and promotion of domain names for sale.

2. Authorization code

A code consisting of a series of letters, numbers and characters used to transfer a domain name to another registrar. The authorization code of each domain name is unique. Also known as the authorization code/EPP (Extended Provisioning Protocol) code.

3. Domain name pre-registration

Setting up a domain name pre-registration is a tool used by users to request the registration of domain names that are being discarded (domain names that have completed the entire expiration cycle).

4. Domain name pre-registration auction

If multiple users submit expired domain name pre-registration requests for a domain name that is about to be discarded, the domain name will enter the domain name pre-registration auction, and users can bid on the domain name.

5. ccTLD

Country code top-level domain names. They represent a specific country to indicate where the website is located. For example: .ca represents Canada and .de represents Germany. Some ccTLDs have certain restrictions, while others do not. Please visit our TLD List page, which lists the restrictions in the "Restrictions" column.

6. Domain Portfolio

A list of domain names registered by domain investors for investment purposes

7. Domain Transfer

The process of transferring a domain name from one registrar to another. Domain transfers often occur when a domain name is successfully sold.

8. Domain Push

Similar to domain transfer, but domain push refers to moving a domain name from one account to another account of the same registrar.

9. Domain Testing

The ability to thoroughly test a domain name (usually domain traffic) and return it if it does not meet expectations. Also known as grace deletion. Grace periods vary for different top-level domains (TLDs).

10. Domain Capture/Domain Snap-up

Capturing (registering) a domain name after the domain name's delivery cycle is completed. Specific services are available to assist in abandonment capture while others provide domain reservation functions.

11. End User/End User

The individual who actually uses the service or product. In the domain industry, it refers to the user who uses the domain name for a website with a clear purpose, such as the user who uses the domain name to run his own business.

12. Foreign TLDs

Domain extensions that are not commonly used or are newer, so there are not a lot of registrations. This can include ccTLDs and gTLDs.

13. Expired Domains

Domain registrations are based on the number of years. If the registrant does not renew the domain, it will enter the expiration process and eventually expire, and then re-enter the open market.

14. Conversions

A strategy of buying low and selling high when an investment is profitable. It is usually used with a short time frame.

15. Domain Sales Page

A landing page used by investors to promote domains for sale, which can be found on the URL of the domain.

16. Grace Deletion Period

The time frame that can be used to "return" a domain after registration. For more information, see "Domain Testing".

17. gTLDs

Generic top-level domains. Includes all non-national domains for multiple purposes. All gTLDs can be used around the world and do not limit websites to specific locations. Examples: .com.org and .xyz

18. ICANN

The Internet Corporation for Assigned Names and Numbers. A nonprofit organization that establishes rules and procedures for domain name registration and Internet-related protocols.

19. Bid

A negotiating tactic used by sellers that allows buyers to make the first offer. Many for-sale pages and secondary markets allow domain names to display an "offer" listing.

20. Parked Domain

Owning a domain name without any actual content on it. Parked domains occasionally generate some revenue for the domain owner through display ads and may also display a domain for-sale page.

21. Cybersquatting or Domain Cybersquatting

A description of an individual who intentionally registers a domain name that contains a brand name or trademarked term for financial gain or to harm a brand's reputation.

22. Transaction Protection or Escrow

A third-party service that helps protect the assets of both parties in a transaction. It's a way to add transaction security to prevent scams or fraud during online purchases (in this case, buying and selling domain names).

23. Typed Traffic

You can learn about the traffic to your site by typing the actual domain name in the address bar. For example, someone who wants to learn about cruises might just type "cruises.com."

24. Uniform Domain Name Dispute Resolution Policy (UDRP)

Uniform Domain Name Dispute Resolution Policy. ICANN policy for quickly processing cyber preemptive registration requests.

25. Whois Lookup

A tool for collecting domain name owner information by accessing the Whois database. Often used by domain name investors or end users to obtain contact information for purchasing domain names.

26. Whois Privacy

Used to hide the public contact information of domain name owners through the Whois database. Usually, when Whois privacy is enabled, the registrar's contact information is displayed in its place.