MappingTheWeb //

Individuals who partake in the buying and selling of domain names are called “domainers”. These individuals can also create revenues by generating traffic to the given properties, then maxizing the ad revenue per page view. By producing tailored landing pages and optimizing for search engines, the influx of traffic can be constant and ongoing, creating a flow of income.

The former tactic sounds very similar to the real world and real estate investing. Essentially, they are the same thing. In either case, the investor is purchasing some ‘property’ in hopes that it will increase in value. Subsequently, a sale will produce a capital gain. 

Many of these investors possess comprehensive portfolios of domain names, containing tens of thousands of names or more. The names range from high-end .com properties to smaller, more niche, long tail offerings. As mentioned above, these fortune-seekers can generate revenue not only via a sale, but also via traffic.

World famous domainers include:

• Yun Ye - probably the most famous domainer; Vancouver man who sold this 100,000+ domain portfolio to Marchex for $164 million in 2004
• Frank Schilling - his sites apparently generate 1% of all Yahoo ad revenues, or over $30 million a year
• Rick Schwartz - multi-millionaire who turned $1,800 into over $20 million; has owned such domains as men.com and porno.com

The domain investing world is a very interesting space that I would like to learn more about. It is a very underground, low profile industry due to its (sometimes) unethical and shifty nature. In any case, it is captivating and opens your mind to a whole new world of business on the Internet.

Note: I would highly recommend reading this article on domain investing. It is not only entertaining, but very educating.