How much does a domain cost?

So, you want to buy domains as an investment?

Before you move forward, let's talk about how it all began and why you might be asking: is buying a domain still a good investment?

The Dot-Com Bubble: Where It All Began

For all of you young whippersnappers who weren't around in the '90s, let me take you all back: the internet was this weird, obscure thing that a handful of tech enthusiasts were hyping up, and companies were only just starting to take it seriously.

Then came a domain gold rush where people realized that domain names could be valuable, so valuable that people began snapping them up like prime real estate.

This era gave birth to domain flipping — the practice of buying a domain at a low price and selling it later for a significant profit. Early adopters made fortunes, while others learned the hard way that not every domain was a goldmine.

Domains were extremely affordable back then, so savvy buyers stockpiled names like "Business.com," hoping to cash in later. (Spoiler: that one eventually sold for $7.5 million.)

Cyber squatters jumped in, buying up brand names they didn't own with the intention of reselling them at inflated prices — Nike, for example, wasn't exactly thrilled about paying a premium for Nike.com.

On the business side of things, investors went wild over any startup sporting a ".com" in its name, inflating valuations to absurd levels.

Oh, and web designers were creating works of art as web-pages, like this:

Then, the bubble burst.

Companies that had spent millions on domains and internet hype, without a solid business model, collapsed. The market crashed, and dot-com stocks tanked. It was a dark time.

Fast-forward 30 years, and here we are.

Every business needs an online presence, and a good domain isn't just a luxury or some cool side project — it's mandatory. But does that mean domains are still a good investment? We've done our research to help you out.

Are domains still a good investment?

The short answer? Yes, but it's not the Wild West anymore.

The domain market has matured significantly since the dot-com boom, and while the days of snagging a one-word .com for $10 and flipping it for millions are mostly gone, there's still value to be found if you're strategic.

Domains remain a unique asset class: they're digital real estate in a world where online presence is non-negotiable. A memorable domain doesn't just hold potential resale value — it's also the online identity of a business or personal brand.

In many ways, it's the virtual equivalent of a storefront sign: a clear statement of credibility, professionalism, and discoverability. So paying top dollar for a domain that matches what a business does and represents, is truly, one of the most important expenses a business will have to make.

Premium domains — short, memorable, keyword-rich .coms, continue to appreciate. The biggest sale in recent months has been chat.com was sold to OpenAI for $15.5 million — while it'll be hard to get that kind of return, with the right time and patience, it is possible.

One-word .coms — like 'Gold.com,' which sold for over $8 million — could still see 5-10x growth in value over the next decade as internet usage surges worldwide. The logic? A growing digital population craves short, powerful names that scream credibility. But here's where things get tricky: supply is drying up.

Every four-letter .com was claimed by 2013, leaving slim pickings. Finding a gem now means scouring auctions or waiting for someone to blink on a renewal.

The new domain landscape

New top-level domains (TLDs) like .co, .io, and .ai have gained traction, particularly in niche industries (tech startups love .io, for instance). These TLDs offer fresh opportunities, but their resale value is less predictable than .coms.

Meanwhile, Web3 domains (e.g., .eth tied to Ethereum Name Service) are emerging as a speculative frontier, blending domain investing with blockchain hype. They're edgy, but risky — some internet folks argue the ENS craze peaked post-airdrop in 2021, and flipping them might not yield the returns it once did.

The takeaway? Domains can still be a solid investment — but success now demands homework, timing, and a nose for trends like AI. Here's the kicker: with .ai registrations up significantly, could these offbeat TLDs be the next digital goldmine?

Is there still money to be made selling domains?

Domain flipping can still turn a profit for those who approach it strategically, but it's far from a guaranteed jackpot.

Marketplaces like GoDaddy Auctions and Sedo facilitate thousands of domain transactions each month.

For example, Sedo alone lists over 18 million domains and reports consistent sales activity. Notably, median .com sales have ranged from $1,500 to $3,000 in recent years, with 2024 averages aligning closer to $2,500.

Profit potential spans a wide range. Beginners might net anywhere from $100 to $10,000 per flip by targeting low-cost auctions or hand-registered names. In one DomainSherpa case study, a $27 expired domain flipped for $10,000.

Seasoned flippers, however, chase bigger wins by snapping up expired domains with traffic or strong backlink profiles—assets that boost resale value. For instance, pro flipper Ali Zandi turned eight such domains into $58,000 in profit in just 60 days through outbound sales.

Winning Strategies in 2025

Just remember, timelines are unpredictable; some domains sell in days, while others can linger for years. Renewal fees and market saturation mean you must balance quantity with quality.

And if you're ready to start your hunt, check out Instant Domain Search, our tool lets you instantly see domain availability and spot undervalued gems so you can invest smarter from day one.

Risks to be aware of when investing in domains

Domain flipping might sound like a dream gig — low entry, big payouts, but it's not all smooth sailing. There are pitfalls that can sink your investment if you're not careful, and knowing them upfront is half the battle.

First up: overestimating value. That catchy name you snagged for $10 might feel like a million-dollar ticket, but the market doesn't always agree.

Buyers, whether flippers or businesses, want domains with clear demand, like short .coms or niche winners. If you're sitting on "QuantumWidgetShop.com" with no takers, it's just a renewal fee drain — $10-$15 a year adds up fast with a bloated portfolio.

Some flippers hold hundreds of domains, and only a tiny fraction sell, leaving cash tied up in digital limbo.

Then there's the legal minefield. Snag a name too close to a trademark, like "NikeRunz.com"— and you could face a cease-and-desist or worse, a costly handover demand. This isn't the 90s anymore (unfortunately) so cybersquatting's a no-go; big brands don't mess around, and legal fees can dwarf your profits. Don't end up thinking you can beat the man so to speak.

Market saturation's another kicker. With every four-letter .com claimed since 2013 and new players flooding in, standout names are scarce. You're competing with pros who've got deeper pockets and sharper instincts.

Those unpredictable sales timelines mean you might wait years for a payout — or never get one. It's a gamble: high rewards if you nail it, but plenty of room to stumble if you don't do your homework.

Getting started with finding domains

So, you're ready to make that move and purchase that domain that you have in mind. If you're looking to find the fastest and most reliable way to see what's available, check out Instant Domain Search — it's literally the fastest way to find domain availability, see its listing price, and you can even get a free appraisal.

You can also view the price history, to ensure that you're not overpaying for a piece of that digital real estate that you might be interested in.

Don't want to invest in a premium domain?

Well, you can compare different TLDs, like .io, .co, .ai, and more, to help you get the best possible domain that aligns with your needs.

If you have a name or idea already, you can look at different domain extensions and find ones that best align with your idea.

Don't have a name yet?

Well, we have a domain name generator that can help you come up with domains for your new venture.