The short answer
Domain investing means acquiring a domain with the intention of selling it later. The asset is the registration you control, not an operating business or a promise of traffic. The central question is whether a plausible buyer will value the name enough to cover your costs. An available name is only a starting point; it is not evidence of demand.
Your decision checklist
- Write down a realistic business use.
- Identify buyer categories without claiming those businesses are interested.
- Record acquisition cost, annual renewal cost, and planned holding period.
- Compare completed sales separately from asking prices.
- Set a total research and purchase budget before building a collection.
A practical example and next step
Illustrative example: you buy a name for $20 and hold it for three years with two $20 renewals. Your direct cost becomes $60 before selling fees or your time. A $100 sale would not mean $80 profit. Start with a small shortlist, write a buyer-use hypothesis for each name, and revisit it before spending.