Many new domainers ‘invest’ a lot of money at the beginning of their domaining career by hand registering a lot of domains which ultimately they end up dropping or continue to renew each year with little hope of selling. The majority of great domain names have been registered long ago and hand reg is usually done for specific brandable marketing campaigns, throw away names, non english dictionary words, unusual spellings etc.
Many experienced domainers have the domain drop market covered with automated research tools and drop catching software. It’s highly competitive and can be a time consuming and expensive exercise for a beginner. So what options do you have to purchase domains for investment ?
One area that is highly developed is the domain aftermarket. There any many auction and buy it now platforms which have tens of thousands of domains available for purchase. The domain aftermarket is very liquid so there are still many opportunities to purchase one or more of these names, hold and sell at a later stage. Of course if you find an undervalued domain you could flip it for a quick sale.
An important thing to understand as someone starting out in this business, is that your total profit does not necessarily need to be the big payday. Purchasing a domain for $100 and selling it for $300 is a healthy profit and gives you the opportunity to purchase bigger investments or take some money off the table for yourself.