How I Made Money Investing in Domains (SEO Strategy)

If you read my previous article, "I Built a Niche Site and Ranked It on Google in a Short Time, Here’s How,” you already know I’m ranking a new website—bestcolorfulsocks.com—from scratch and documenting my journey. My credentials? I’m the owner of a website with over 60,000 monthly visitors and a Domain Rating (DR) of 69—a benchmark that commands respect in the SEO world.

I’ve emphasized before that anyone claiming to be an SEO expert without successfully ranking their own site isn’t truly qualified. In that same spirit, I’m diving deeper into a topic I touched on briefly in my last article: how you can make money by investing in domains.

This realization came from my own experiences, not only in leveraging domain names for SEO but also discovering the financial opportunities they offer. Let me show you how a well-chosen domain can help you rank faster and potentially net you a 10x return on investment (or more) through resale.

Why Your Domain Name Matters (SEO and Beyond)

The first thing to understand is that your domain name directly impacts your SEO efforts. If you’ve ever noticed that top-ranking pages on Google often contain the search term directly in their domain name, you’re on the right track. Google favors relevance, and having the exact keyword in your domain can provide a huge boost.

For my website, I chose bestcolorfulsocks.com because the prime domain (colorfulsocks.com) was selling for $5,000—a price tag I wasn’t ready to pay. By selecting a domain that included both my primary keyword ("colorful socks") and a secondary modifier ("best"), I was able to start ranking for the term "best colorful socks" in less than 90 days.

This underscores a key takeaway: keywords in your domain matter more than DR when you’re just starting out. Even domains with modest DR scores can outrank high-DR competitors if they’re optimized with the right keywords.

How Domains Become Financial Assets

What surprised me most was discovering that domains aren’t just tools for ranking—they’re also lucrative investments. Many desirable domains appreciate significantly over time, even if they’re never used to host a website.

Here’s a real example:

Compared to other investments, the ROI on domains can be astronomical. As more websites are created and competition for prime domains increases, the demand (and value) for these assets continues to grow.

How to Invest in Domains: A Step-by-Step Guide

Investing in domains isn’t as complicated as it sounds. In fact, it’s surprisingly straightforward, and platforms like GoDaddy make the process beginner-friendly. Here’s how to get started:

1. Identify Desirable Keywords

Focus on one industry or niche that you understand well. Use tools like SEMrush or Ahrefs to identify high-volume, low-competition keywords. Look for terms with at least 10,000 monthly searches ideally, but don’t overlook those with slightly lower search volumes if they’re especially relevant or “brandable.”

2. Search for Exact-Match Domains

Once you have your keywords, search for available domains by adding .com to your terms. For example, if your keyword is "cookies" check if cookies.com is available (highly unlikely as this is a super popular keyword with 100K+ in monthly search volume, but STILL could be available). Most prime domains are already taken, but you’d be surprised how often gems slip through the cracks.

If the exact match is unavailable, consider alternatives like:

• bestkeyword.com (i.e. bestcookies.com)
• thekeyword.com (i.e. thecookie.com)
• akeyword.com (i.e. acookie.com)

Domains with modifiers like “best” or “the” are often just as valuable, both for SEO and resale.

3. Buy Cheap and Hold

If you find a desirable domain for $25 or less, buy it immediately. For domains priced over $1,000, evaluate whether you plan to use it yourself or are confident in its resale potential. As soon as you purchase a domain, you can list it for sale at any price you choose. Platforms like GoDaddy provide valuation estimates, but the final price often depends on what a motivated buyer is willing to pay.

4. Reach Out to Industry Players

This strategy can be surprisingly effective if you’re proactive. Once you’ve secured a domain, identify businesses in the same industry that might benefit from it. Here’s how:

1. Search Google for brands ranking on the second, third, or fourth pages for your target keyword.

2. Email them with a pitch:

   
   

   I own [your domain name], which is highly relevant to your industry. If you’re interested, I’d be happy to sell it to you at a reasonable price.

   
   

5. Leverage GoDaddy Auctions and Other Platforms

If you want to dig deeper, participate in domain auctions. Sites like GoDaddy Auctions or Flippa allow you to bid on high-value domains. However, this approach requires a budget and a clear understanding of your niche’s market demand.

Why Domains Are Worth the Investment

The beauty of domain investing is its dual utility:

1. SEO Advantage: Domains with exact-match keywords rank faster and drive more organic traffic. For example, my choice of bestcolorfulsocks.com is already paying off, as the site ranks on Google’s first page for its primary keyword.
2. Financial Gain: Even if you never use the domain, holding onto it can lead to significant profits. With minimal upfront costs and zero maintenance, domains are low-risk, high-reward assets.

My Domain Investment Journey

When I started building and ranking bestcolorfulsocks.com, I wasn’t initially thinking about resale. My focus IS ranking. But the process got me thinking about domains as assets. After seeing how keyword-rich domains performed, I began buying others in niches I understand well.

One domain I purchased for less than $22 two years ago was recently valued at over $1100. I haven’t even listed it for sale yet. This small win reinforced how valuable the right domain can be—not just for ranking, but as a long-term investment strategy.

Key Takeaways

• Domain Keywords Matter: SEO success often hinges on choosing a domain with relevant keywords. Google rewards relevance and domains with exact-match keywords rank faster.
• Domains Appreciate Over Time: Desirable domains often grow in value as more businesses enter the digital space. Holding onto a good domain can yield profits far exceeding traditional investments.
• Reach Out Directly to Sell Domains: By proactively contacting industry players, especially smaller brands with room to grow, you can create opportunities to sell your domain for a significant profit.
• Start Small, Think Big: Focus on buying inexpensive domains in niches you know. Even if you don’t build a site, you can list the domain for resale and wait for the right buyer.