The industry of buying and selling domain names is actually very similar to the industry of buying and selling company stocks. Although domain investors aren’t running across floors screaming, and no particular bell is rung when the day is over, there are still many things these two industries have in common. Listed below are just a few reasons why domain and stock investing are alike.
Risk is Involved – Both stock and domain investors need to be willing to take risks up to some level. Anytime you are buying something with the intention of selling it for a larger profit later there is always a chance that it might not happen. Each industry has different tools and knowledge available to help you limit risk, but not completely. Also, each industry also has both “safer” investments and “riskier” investments.
Trends are Huge – New trends are always popping up in both of these industries. If you jumped on the three letter .COM trend a decade ago then today you would be extremely happy that you did. The same could be said for those who purchased Apple and Google stocks in their early days. This year has brought a huge new trend in numeric domain names. At the same time, stock prices on many drone companies has began rising because it’s a large trend happening around America and other countries now. It’s always important to try and spot new trends and then get into them when you can for a good low price!
No Limit on Returns – Someone can buy a domain name for $10 and flip for $100, or $1000, or $10000, or even $100000. The same goes within the stock market too. You could buy 10 shares for $10/each today. Then, those shares could go up to $20/each tomorrow. Or, maybe $30, or even $40. That’s one sweet perk to both of these industries. There is literally zero limits on the amount of profit you can make with either of them!
Both have Dark Sides – Anytime we’re talking about something where lots of money can be made, there will always be a dark side. This happens much more commonly within the stock market, but has happened within the domain industry as well. The stock market is full of insider secrets, trading, and pyramid schemes. At the same time, the domain industry has had it’s fill of shill bidders and “not so honest” registrars/employees of registrars.
Job Freedom – Some stock investors choose to work in an office, while others choose to work from the comfort of their own home. The same applies with domain investors. Both stock and domain investors will usually work for themselves and enjoy the benefit of working from almost any location. Also, most do not have to abide by specific dress codes or work schedules. It’s a type of freedom that many other industries just can’t offer!
As you can see, there are lots of similarities between buying and selling both domain names and stock shares. Not everything is the same though; There are lots of differences between them as well! Stock investors must complete all of their trades through a broker, while domain investors can sell internet real estate themselves, or through a third party Escrow service. To go along with that, the domain market never closes unlike the stock market. Stocks also usually fluctuate in price on a daily basis which doesn’t usually happen within the domain industry. Overall though, I’ve personally bought, sold and traded both of these in my lifetime and would have to say that I prefer domaining the most. Returns can be huge and there is usually much more limited quantities of domain names compared to stock shares!