Premium Domain Portfolio

Highlights:

  • Domain names are an established asset class which are easy to understand and simple to buy and sell in an established market
  • We handpick premium domain names which we believe have the potential for returns of 3-5 times
  • Clients are buying the asset directly with GoDaddy a $16 billion New York Stock Exchange listed corporation ensuring both purchase and custody are secure
  • Each selection is made based on buying at below the GoDaddy appraisal value which can be independently verified
  • Clients are able to re-sell the asset through either GoDaddy or other services such as Sedo.com
  • The transactions occur almost immediately allowing the customer to take possession of their asset
  • Clients are able in most cases to pay for their domain name on a lease to own basis allowing them to spread the purchase cost over typically 6-12 months
  • Commissions are paid as soon as payment is received by the owner of the domain name
  • Domain names are often described as virtual real estate with low and transparent holding costs, typically the annual renewal fee is below $25
  • GoDaddy is the leader in the second hand market for domain name sales with revenues from this source of $400m a year

The Domain Moonshot Reseller Network is a white label service we offer to certain clients.

It works like this:

DomainMoonshots.com provides an exclusive list of available premium domain names for sale which is updated regularly. We handpick premium domain names which we believe have the potential for returns of 3-5 times.
Each premium domain name is accompanied with certain information in order for your client to determine whether the domain name is suitable for them and meets their investment criteria.
One of the key elements of this information is the Estimated Resale Value. This is the value the client could sell the domain for in the secondary market based on available valuations. It is NOT a guarantee or promise of a profit/return.

Here is an example:

Domain Name: BankUSD.com

Registrar: GoDaddy – Registered: 2016
GoDaddy Value: $2,101

Price: $550

ESTIMATED RESALE VALUE: $1,500 – $2,500

Buy through GoDaddy

Description:
BankUSD.com is a memorable and relevant domain name that combines the concepts of banking and US dollars. This name suggests a secure, reliable, and trustworthy online platform for financial transactions, currency exchange, or banking services.

Investment Potential:
BankUSD.com presents an attractive investment opportunity due to its:
– High relevance to the finance and banking industries
– Easy memorability and brandability
– Strong potential for search engine optimization (SEO)
– Increasing demand for online banking and financial services

Possible End Users:
– Online banking and financial institutions
– Currency exchange services
– Payment processing companies
– Fintech startups
– Digital wallet providers

Domain Metrics:

  • Atom Score: 6.8/10
  • Age: 8 years
  • GoDaddy Appraisal Value: $2,101
  • Atom valuation: $3,699

Investment Highlights:
– Undervalued price point $550 compared to appraisal value $2,101/$3,699
– Growing demand for online financial services
– Potential for development into a reputable banking or financial platform
– Strong branding opportunities

Conclusion:
BankUSD.com offers a compelling investment opportunity for those looking to capitalize on the growing online finance and banking industries. With its memorable name, strong metrics, and undervalued price point, this domain offers significant value.

Building a portfolio
We encourage clients to build a small portfolio of premium domain names in order to allow them to diversify their risk in this asset class. Perhaps owning between 5 to 20 domain names.

Background to buying domain names as an investment

Overview

What are premium domain names?

A premium domain name is a highly desirable and valuable domain name that:

1.     Is short, memorable, and easy to spell
2.     Has a strong brandable potential
3.     Has high search engine optimization (SEO) value
4.     Is in-demand and scarce
5.     Has a strong resale value

Characteristics of premium domain names:

Domain Metrics:

  • Length: Short (1-2 words)
  • Extension: .com, .org, .net (top-level domains)
  • Keywords: Desirable, industry-specific, or generic terms
  • Brandability: Unique, memorable, and easy to pronounce
  • Traffic: High search volume and potential for organic traffic

Premium domain name benefits:

  • Increased brand recognition
  • Improved SEO rankings
  • Enhanced credibility
  • Higher resale value
  • Competitive advantage

Domain name valuation factors:

1.     Length and extension
2.     Keyword relevance and demand
3.     Brandability and memorability
4.     Search volume and traffic potential
5.     Industry and market trends

Most people have a general understanding of domain names, however, what they probably don’t realize is that there is an established market to buy and sell domain names. What most also don’t understand is the profit potential in buying undervalued domain names and selling or flipping to other domain investors or end users who intend to develop the domain name as part of their business or brand.

Domain names can be viewed as virtual commercial real estate. Unlike real estate however the costs of both acquisition and holding are far more straightforward and transparent compared to their bricks and mortar brethren. The only ongoing cost is the cost of renewal which is generally under $25 per annum irrespective of the value of the domain name.

Our goal is to make investing in domain names simple. While there are hundreds of thousands if not millions of domain names for sale at any one time there are only a small percentage which hold significant value. These are called Premium Domain Names. It takes considerable time to identify quality domain names which are likely to generate a profit on future re-sale. Add to this the skill involved in assessing a domain name’s value that’s why we have developed The Premium Domain Portfolio.

The Premium Domain Portfolio aims to make investing in domain names simple, transparent and of course profitable.

Why Invest in Domain Names?

We believe Investing in domain names is a superior investment to many other alternative investments including cryptocurrencies, collectibles, gold and real estate.

Firstly, you are buying an asset which has a resale value. Assuming of course you are buying quality domain names.

Secondly, there is also a secondary market to sell domain names, although it is arguably not as liquid as the crypto market, although liquidity tends to dry up fast when the crypto feeding frenzy evaporates.  The same can’t be said of domain names where there are always investors for the right names at the right price.

Thirdly, your investment is not at the mercy of the market. Most alt coins have little utility and the price is driven by the crowd. In the case of domains you are buying an asset which can be sold on its own merits.

Fourthly, you can build a portfolio of quality domain names and sleep peacefully at night knowing that your portfolio won’t lose 90% of its value in a few days as the crypto market tends to do now and again.

What excites us the most about domain names as an investment is the fact that each is one of a kind. They are often described as virtual commercial real estate with none of the many costs involved in holding the bricks and mortar version, apart from a small annual renewal fee.

This is by no means saying that an investment in domain names is a safe investment. It isn’t. But the returns are potentially phenomenal.

You can hand register a domain or you can buy a domain from an auction which is easily accessible to the average person with spare cash. Spare being the operative word.

Here are a few headline grabbing examples:

  • com: Purchased for $70 and sold for $35.6 million in 2010.
  • com: Originally bought for $35,000, later sold for $35 million in 2007.
  • com: Purchased for $10 and sold for $1.8 million in 2013.
  • com: Acquired for $49.7 million in 2010 after initially being purchased for a nominal fee.
  • com: Originally purchased for $4,600 and sold for $4.7 million in 2013.

And here are a few recent deals:

  • com: Sold for $800,000 in 2021. The domain’s value surged alongside the rise of non-fungible tokens (NFTs), which became a significant trend in the digital art and collectibles market.
  • com: Acquired for $2 million in 2022. This domain likely fetched a high price due to its relevance to the startup and venture capital community, where “angel investors” provide early-stage funding to entrepreneurs.
  • com: Sold for $555,000 in 2023. The domain’s value could be attributed to its versatility across various industries, including marine biology, entertainment, and technology.
  • com: Acquired for $2.5 million in 2020. This sale reflects the continued interest and investment in blockchain technology and cryptocurrency-related domains.
  • ai: Sold for $500,000 in 2022. With the growing adoption of artificial intelligence (AI) voice assistants and voice-enabled technologies, domains related to voice and AI have seen increased demand and value.

Admittedly these deals are the tip of the iceberg however, bargains are out there as long as you do the legwork. There are 350 million domain names globally, and 70% of domains fail to be renewed a year after purchase. That’s a big pool of names which you can choose from. GoDaddy is the biggest player in the domain market with a market cap of $16B, revenues of $4B and importantly for our purposes, sales from secondary sales of domain names of over $400m. There are other players of note including NameCheap which as the name suggests is a great place to buy domains at a lower price than many of its competitors.

The good news is, the domain name market is not a saturated one. There are likely only a few thousand people who invest in domain names globally. That’s a small number compared to the stock and crypto market for example. That probably explains the over sized returns available as it is far from a perfect market.

Obviously the downside is that your domain never sells and you have to continue to pay the renewal fees. But the investment required can be minimal. You can invest anywhere from a few dollars to thousands of dollars. Many investors in this market expect to see a return of 10 to 15 times their investment.

As a domain name owner, you have various options. You can either hold onto your domain for long-term capital appreciation, a preferred strategy for many investors, or list it for resale immediately, often through the platform of purchase. Alternatively, you can generate income from your domain by parking it with a service like Sedo.com. It’s a simple investment with trusted billion dollar market participants so your money and the custody of your assets are safe, the same can’t be said for crypto.

There are many factors that determine a domain’s resale value, including the number of backlinks, search volume and the number of extensions available. GoDaddy appraisals are only a guide to a domain’s valuation. If you pick a good name chances are if someone wants it bad enough they will pay top dollar for it with no regard to the valuation.

How the Domain Moonshots Reseller Network Works

Buying
The buyer transacts directly with GoDaddy. The client may choose to buy on a lease to own basis which allows the buyer to spread their purchase cost over an extended period typically 6-12 months. Ownership will transfer almost immediately. The buyer will need to provide basic information including name, address, email and debit or credit card information.

buy

Selling
Once purchased the new owner is able to list his new domain name for resale almost immediately. This can be done through GoDaddy and Afternic.

selling

Commission

Generous commissions are payable based on the cash value of the sale. In other words if a client pays for their domain name immediately the full commission is payable as soon as the domain buyer is in receipt of his fund, usually within 7-10 days. If the client pays through a lease to own arrangement then the commission will be paid as soon as each installment is received by the seller of the domain. This provides an attractive revenue stream if a number of sales are made this way.

Buying domain names - is it a security?

Individuals buying and selling domain names as a personal investment, without pooling or promising returns are generally not subject to securities laws.

Contact us here for more information

Brochure 2

Download Client Brochure