What is Domaining? How to Begin a Domain Name Business

For those who are unfamiliar with the domaining business, it entails buying, selling, developing, and monetizing domain names. It is, in fact, a BIG business with the potential to earn you a million dollars. You may not believe me, but when you consider that was sold for $5.1 million, was sold for $2.2 million, was sold for $1.8 million, and so on.

It’s a million-dollar business, but it’s not just about big names; expert domainers frequently make $10,000 or $100,000 on unknown domains as well. With so many new domain name extensions entering the market and so many businesses closing down and abandoning premium domain names on a daily basis, the industry is constantly growing. This expansion brings with it an ever-increasing potential for success, but it also brings with it a slew of new challenges.

This article will go over a few important checklist items to think about when starting a domaining business from scratch.

1- Recognize that you will need some money to make more money:

Yes, money is required to start a domaining business, and it can range between $100 and $100,000. Successful domainers typically own a large number of domains to build their portfolio, but you can begin with a small number. A lot depends on the business model you choose, and your financial needs will vary accordingly.

2- Skills Required

To be honest, you don’t need any specific skills, but you should be eager to learn, gain experience, and grow. The best way to learn about domaining is to do it yourself. To be successful in your domaining business, you will need experience, which you will gain through experimentation and learning from relevant domaining resources such as Purely Space. Never close the doors to learning, and you will find success!

3- Be Aware of and Understand the Risk:

In reality, no business is risk-free, and domaining business is no exception. You must be aware of the various types of risks associated with the domaining business, such as domain marketplace scams, the value names (or other top-level domains) decreasing for various reasons, typosquatting popular companies can result in a lawsuit from the company, and so on. has correctly described the five types of risks associated with the domaining business.

4- Avoid the Wrong Ways to Make Money from Domaining:

Every business has ethical and unethical ways to make money, and the domaining business has some unethical ways to make money as well. It is critical to be aware of and avoid these bad habits. The following business models should be avoided:

  • Domain hijacking is the process of stealing an internet domain name from its rightful registrant.
  • Cybersquatting is the practice of registering domain names in bad faith in order to profit from the goodwill of a trademark that you do not own.
  • Typosquatting occurs when you register domains that closely resemble popular domains, such as,, and so on, with the intent of gaining traffic and possibly selling the domain at a higher price. It may not be illegal, but it increases the likelihood of a lawsuit from the companies.

5- Discovering the Most Profitable Strategy:

If you are serious about getting into the domaining business, the best option is to go the legal route, which is both risk-free and highly rewarding. Here are some of the most successful domaining business models.

  1. Domain monetization is one of the best business models because it is low risk, completely legal, and can yield massive profits. You purchase domains, create strategies to profit from the traffic they generate, and then sell the site for anywhere between 12 and 24 times the site’s monthly revenue + brand price.
  2. Another business model is domain development, in which you buy brandable domains, add a website and a service to the domain, and capitalize on traffic until you sell the domain name and its service.
  3. Domain capitalization is a risky business model, but if you’re good at valuing domains, it can help you sell the next million dollar domain. For example, if you purchase with the expectation that a product or service with that name will be released sometime in the future, you are the only person who can purchase this domain.

In conclusion:

Make sure to choose the right business model before you begin your domaining venture. Take some time to learn about all of the different business models and then select the one that suits you best. Experienced domainers run multiple business models at the same time, but as a newcomer, it’s best to start with a single direction.


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