Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

As a real estate and stock market investor with over a decade of experience, I have seen how traditional investing opportunities such as stocks, mutual funds, real estate, bonds, and metals have become less reliable in recent years. At the same time, “real estate” on the Internet, in the form of domain names, is becoming an increasingly profitable arena for investors.

Personally, I have purchased domains for a few thousand dollars and, after a few years, sold them for more than $30,000. Domain names are hot properties for individuals and companies who want to make money on the Internet. Like brand names and slogans, domain names that are easy to remember and can be associated with a product or service can make a world of difference in profit potential. Even catch phrases like “Got Milk” can be turned into a profit center by tacking on a “dot com” to create a key piece of Internet real estate.

Need more proof? Self-proclaimed “Domain King,” Rick Schwartz sold his domain name to Turner Broadcasting System, the parent company of CNN, for $750,000. Frank Schilling, who began buying domains in 2002, earned more than $10 million dollars in revenue, ninety-percent of which was profit, in two years, and then more than doubled his revenue and profit two years later.

You might view the Internet and the technology sector as “high risk.” However, the Internet is expected to continue in its exponential growth, similar to the growth that the real estate and stock markets exhibited decades ago.

Domain Names Investing vs. Stocks & Real Estate Investing [infographics]


What are Domain Names?

Domain names are the way in which websites are identified, such as When domain names are registered in the Domain Name Service (DNS) and directed to a particular IP (Internet Protocol) address, information can be stored at that location and viewed in an Internet browser, such as Internet Explorer or Firefox.

How Can Domain Names Become a Good Investment?

While investments in stocks and real estate often require substantial know-how and significant amounts of expendable cash, domain name investing opportunities are accessible even to the less financially savvy. Domain names can be purchased for just a few dollars and often “parked” on a web host for free.

Domain name investors can also choose to propagate a website with content that is relevant to the domain name. Attracting visitor traffic to a website can significantly increase the domain name’s value to a potential buyer. Furthermore, passive income can be generated from content, creating cash flow while the value of the domain increases, similar to the way a real estate investor might rent out a property while equity in the property increases.

Reasons Why You Should Invest in Domain Names

As my infographic illustrates, domain name investing costs less and has almost no overhead compared to stocks and real estate. There is a low initial investment and low maintenance costs for a business opportunity that has a high potential for return on investment (ROI). Like real estate, domain name investments allow for a “buy and hold” strategy, but with lower transaction costs in a market that has significantly lower risks. While domain name investing does not offer easy financing, legislation protection, or the option to easily cash out, there is no insurance needed and asset protection can be assured.

If you are overwhelmed by the complexity and unreliable nature of the real estate and stock markets and are looking for new investment opportunities that have less risk and are easier to understand, domain name investing might be a good fit for you. Connect with me, follow my posts, and I’ll go into more detail on how you can generate a cash flow and a positive return from your domain name investments.



Disclaimer: The information contained in this article is provided by John Romano as general information only and does not constitute financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs, so you should consult with a tax preparer or financial professional for specific financial issues that involve your personal finances. The communication between John Romano and readers does not establish an advisor-client relationship in any shape or form. Any discussions about finances are strictly for informational purposes only and financial decisions should not be based on such dialogue. John Romano is not liable for any action taken on any information or advertising obtained from this article.

Written by

John Romano is an entrepreneur, marketing strategist, Internet consultant, blogger and an expert in the technical, conceptual, and content development of online startups. He is the founder of several ecommerce sites and has helped multiple companies launch successful online businesses.


  1. Jen

    Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

    Great infographic! Do you recommend buying unregistered domains or previously registered domains?

    • Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

      Jen, it really depends on your budget. The best domains are already taken. If you are able to buy a previously registered domain you will probably receive a much higher return on investment compared to registering a brand new domain.

  2. Clarck genson

    Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

    This weblog is fantastic.

    • Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

      Thank you! It is the world’s first infographic comparing these three types of investments. I am very familiar with all three of these investment sectors. My friends often ask me where they should invest their money… now I can just direct them to my website! ;)

  3. jerry

    Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

    Hi John! Very good article.. Very informative, helpul and useful as one ;)
    I really appreciate your content, it is not help only me as it helps all other..

  4. Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

    Love the infographic – this info reminds me that there are many ways to make money online – some better than others, and definitely some that have better ROI, such as getting the right domain name that has good potential. I may yet be persuaded to try it :)

    • Top 8 Reasons to Invest in Domain Names Instead of Stocks or Real Estate [INFOGRAPHIC]

      Thanks Ruth. If you want to play it safe, invest in a 2 or 3 letter .com!

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