I have $700 to invest in domains. Can I turn this into a $200-$300 per month inc

Started by Valerya, Jun 20, 2022, 11:55 AM

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ValeryaTopic starter

I just got this question from a fellow beginner domainer here. Good one, legitimate question. I believe not everyone here on NP might know the answer to this question, so here it is:

Absolutely not.

( Edit: or at least not at first, unless you're really lucky OR very good at it = native talent, OR you put a lot of sweat in, which is likely not happening for 95% of beginner domainers especially due to the odds at stake )

Domain investment is not a get rich quick scheme. And especially when starting up, you need time and efforts to get to some profit.

Also, 95% of people starting with domain investment will never make a single $ profit out of that (or maybe even more than 95%, I'd say that 99% non-profit-ers is a more appropiate percentage).

Anyway. If you're still unclear, here's some math that would explain it:

With $500, the best number of domains you can get for such amount are going to be handregs. Either drops or fresh regs. (Although you can theoretically spend $500 on just one good domain at auctions; but as a beginner, the truth is chances are that won't be a good domain but junk - because you lack experience.)

So let's say you hand reg or get some drops. You can register say 50-60 .com domains for one year (or a bit more depending on registrar and offers, but anyway). I'm gonna take the 50 names number as it's more easy to calculate.

The average sales ratio in our field is 1...2%. As a beginner, chances are you will be on the 1% side... or maybe even less. Will use the 1% ratio in this calculation below.

Let's say you register 50 .com domains with this $500 (note: per year). In this case, as per the ratio above, you have a chance at any profit whatsoever only if you are going to sell that domain ABOVE $1K. Then you subtract $500 x 2 = $1K from the sale (the cost of regs over the 2 years span), and here you have just a few hundreds profit - if the domain sells above $1K. But side note, renewals are usually more expensive so you might spend a bit more on the second year if you renew your names.

Say you are able to sell one domain in 2 years (again at the standard 1% ratio) for $1500.

This means you just earned $500 (over 2 years), which goes to an earning of ~$20 per month on average from that investment (you need to keep that $500 locked in for 2 years). Therefore you will still need to continue keeping that $500 invested in order to continue making $20 per month. (Or a bit more if you're good, but likely nothing in a larger order of magnitude.)

( Later edit: And if you want to grow your portfolio naturally, you might not be able to take any money home during the first years, as each of the $ you make will have to go into reinvestment. )

Not what you expected, may I ask?

But wait, there's more.

Since most beginners sell domains at xхx range, not at 4-fig (due to lack of experience and lower quality portfolio) making this 4-fig sale is even tougher; although the sales ratio increases somewhat as the price lowers. The lower the price, the bigger the renewal cost pressure. Which puts you in a risky terrain.

That's if you decide to stick with .coms. And I will repeat here the advice I got when beginning: If you want to start with domain investing, get .coms at first. Chances are you can have far less success with other TLDs although they might be easier to get. (Why: Because sales ratio decreases far below 1%, like 0.1% or even much less). I listened to this advice when starting and it really helped me get successful with domains. It really made a difference for me, listening to more seasoned domainers back then.

The gTLD path: Alternatively you can of course get, say some .xyz for cheap ($1 or less) or any other ngTLD, but I would not advise beginners to do that.

Again you probably won't know what you're doing and your xyz sales will not match the ones of top sellers here. And the same for other gTLDs not just xyz which I picked only as an example. Now since the sales ratio is terrible for most noncoms, unless you know exactly in advance who would buy that domain from you and why, you're going to be at a loss overall with gTLDs.

I need to also share with you here the results I got when starting with domains, a few years ago.

I banked a $14K loss in my first year starting with domains (spent $41K and made back $27k). But having business experience behind, I knew how to make this work.

I almost made it to zero in the second year ( still some minor loss) and I only banked a profit in the third year. Therefore, for most of you beginner domainers starting just now, I would not expect things to be any easier. It's simply not how domaining works. Yes there are some super investors here that show amazing sales, but those are few and talented, and maybe lucky. So i would not bet on similar results if I would be in the starting position.

Again, domaining is anything but a quick get rich scheme. It's hard work, financial risk and strained nerves when you wait months and nothing sells; or when you see your capital dwindling in the first years because you banked a loss. But if you're good at it, and if you put the sweat in you can be successful - like in any other field. Or not. It's entirely up to you to mitigate these rather tough odds in our field.

Final note: IMPORTANT: Please also note that economical tsunami is coming. It's already born and has just to reach us. It might be the worst moment to start now with domains.

Or not - if you are a super talent, so do you feel like you are one...? Otherwise, for most of us here (including myself) there's no such thing. I personally also have no talent whatsoever at domains BTW - all my results come from sheer hard work and plenty of sweat, and putting/risking a lot of money in. I made my "talent" by working my b*tt out - so it's not talent, but experience.

Anyway, I hope my reality check here is not going to depress you cause that ain't the point.

But rather help you make that call, whether to get in the cold water... or not. Expecting easy, nah, that's not going to happen. Just be careful.

Good luck ahead, and happy domaining!



i'd say it depends on the person, and what they already know that's true, about domains.

it's not impossible, but it could take some years until they have built a sustainable model.

with a combination of marginal return on sales and some ppc income... increased growth in both sectors could yield $$$ a month.

gotta be on a mission though...



People on here keep saying that if you are a beginner you won't most likely make any money with that $700.

I am saying even if you are a domain pro expert, you can't make $200/month with that $700 investment.

Heck, I say get 100 domain expert pros that have been in the domain game for over 20+ years and none of you guys out of 100 domain pro experts will make $200/month with that $700 investment.

Alan Fleming

Earnings on domains work a little differently than the author of the post painted (although there is some truth there). If you have been selling, buying and renting domains, you should know that earlier it was enough to mothball a domain for 1-3 years, and then just sell it.
All this is true for the times of the 2010s... Now, if you want to get a normal profit, do point buying and promotion. What I mean? Now no one can buy it without analyzing your site. There are a lot of sites where you give guest access with complete traffic information and other nonsense. Now you can't just earn money on domains. Everything is done in three stages:
1. purchase,
2. optimization and expansion of the audience,
3. sale.
To earn passive income of $200, you need to hold a permanent asset of $2000. If we are talking about a one-time profit of $200, then yes, $700 will be enough, but you need to not only choose a good domain, but also promote it.


Even considering the simple aspects of investing, it is impossible to get more than 30% stable monthly. Domains are no exception to the rule. Ambitions are good, but it's worth really looking at the world.
 :)  :)


The practice of using domain names as investments:
The acquisition of domains for the purpose of obtaining benefits is a common phenomenon wherever there is an Internet and where it is somehow developed.
In the CIS and Ukraine in particular, there have long been many websites that register domains and resell. It is worth mentioning the official term, cybersquatting, which describes "the acquisition of domain names consonant with the names of well-known companies, or simply with "expensive" names for the purpose of their further resale or advertising."

The most expensive domain in the world — sеx.com — sold for $14 million. Although this is a unique case, domains are sold every day in the world. For instance, I personally received such prices in response to requests about the cost of domains:

autoplus.com — $40000
metropoliten.kiev.ua — $50000
Domain name as an investment
Imagine what percentage of profit you will get if you invest $10 and take $1000 in half a year. The profit will be 20,000% per year! How do you like this investment? Sounds pretty profitable.

In order to become such a specific investor:
contact any domain registrar
check if the desired name is free (this is done very simply, everything is there)
if the domain name is free, then register it and pay in any acceptable way
, if it is occupied, then advanced registrars  offer an interception service, that is, an attempt name registration after the payment deadline (but the chances of success in this case are negligible)
Invest wisely and remember that there is a huge competition on the Internet and all the "expensive" domains have been occupied for a long time. But if you do decide, let your domain name be a super-profitable investment.