Several issues that need to be considered in the investment domain name in 2023

With the release of CHATGPT in 2023, .AI domains suddenly became popular. AI is expected to be one of the most promising industries in the future. Some individuals are using .AI domains for projects, while others are specifically investing in AI-related domains. When investing in domains, several considerations must be taken into account to ensure the potential for future sales. Here are a few key points that domain investors should consider in 2023:

1. Who needs this domain?

List the practical applications for this particular domain. If you find it challenging to identify target customers or your list only includes one or two possibilities, you may need to consider another name. The more potential buyers, the better. Domains related to artificial intelligence will likely be in high demand in the future.

2. Would I start a business with this name?

The second point pertains to the quality of the domain. Imagine someone is offering you seed funding to start your business, perhaps $50,000. If you have the necessary funds and skills, would you choose this specific domain as the foundation for your business?

If you wouldn't risk your capital on this domain to start a business, why would others do so?

3. How will I price this domain?

Decide how to price the domain before acquiring it. You might think it's fine to determine the price later, but whether this is a good acquisition depends on the price and the potential selling rate.

If you're struggling to propose a price, is it because you don't have a good understanding of the niche or industry? Does it make sense if, considering the niche market and potential uses, the price should be relatively low?

Pricing can be challenging, but keep in mind the following:

- What are the sales records of similar domains?

- What is the typical startup capital level for businesses using this domain?

- What portion of the expenses on the domain is reasonable?

- How are competing domains currently priced?

- How many years do I plan to retain this name?

Although you'll reconsider renewing it every year, ask yourself how many years you intend to keep the name, even if no offers are received. Let's assume it's 10 years. The cost of the domain is not just the purchase cost, but also the cost of renewing it 10 times.

4. Can I afford the risk?

No domain can guarantee profitability upon sale, or even sale at all. Are you prepared to never sell the domain and potentially lose all your investment capital? Does your personal situation put your investment at risk?

Some domains have liquidity because they are likely to be quickly sold to other investors at a certain price level. How close is your acquisition price to the potential quick-sale liquidity value?

5. Is this the best use of my money?

This is one of the most crucial considerations but is often overlooked. Your spending on domains is limited. Make the most of it. Therefore, for each acquisition, compare it to other ways you could use the funds.

For instance, is there a better domain acquisition, meaning a more worthwhile use of the money? Make sure your money is spent wisely.

6. What is my sales strategy?

After acquiring the domain, what steps will you take to increase its chances of selling? In which markets will you list the domain? If they are carefully targeted markets, what are the chances of this specific domain being accepted?

7. Do you intend to purchase immediately, or are you only open to making offers? If it's the latter, what is the offer amount?

Do you plan to utilize outbound efforts to enhance the selling opportunities for this name? If so, which specific companies or business types will you contact? What will your brief outreach communication regarding this name as a promotion say?

8. Does holding this name come with any pressure?

Are there risks (e.g., potential trademark or other legal issues) associated with this name? Even if you believe everything is in order, considering there are many names changing hands every day, are you willing to bear this pressure?

These are some of the key considerations for domain investors in today's market. Domain investment remains a popular endeavor worldwide, with increasing polarization, particularly for short domains. Two-letter .com domains, in particular, are becoming increasingly valuable. With only 676 in existence, less than a hundred are currently in circulation in the market. Those interested in domain investment may consider investing in two-letter domains.

Two-letter domains available on DN:

hx.com

py.com

bz.com

sh.com...