While the stories of getting a domain name and turning it into millions has been overly hyped, and for the most part made money only for those selling how-to products on how to do it, there still is the occasional domain name that allows the owner to hit the lottery.
That's what happened with Chris Clark, who's owned the Pizza.com domain name for about 14 years. He put it up for auction through Sedo.com to see what would happen, and what happened was he is now $2.6 million richer from the sale. His response was: "It's crazy, it's just crazy."
He had tried to use the domain in a number of ways without much success, and eventually turned it into a pizza and advertising directory.
It just goes to show you that while the overall rush to enter into this field is largely over, there can still be a gem hidden in the domain name space which will sell for big bucks.
I wouldn't recommend someone to count on this to make a living or hit it big, but it is something that could be done more as a extra stream of income. It's far too volatile and uncertain to be able to count on it in any consistant manner. Think of the commodity markets and it'll give you an idea of what it's like.
Still, those that are serious about the market buy up thousands of names and hold and sell them to make money. You've got to do your research and get a grip on the market to be successful at it.
It can and is being done successfully by some, but it's not easy money for those that are really into it, and they know the business and market.
Those getting into this are very quickly discouraged because they're looking at it from the lottery mentality perspective, rather than a portfolio of names they may have to hold over the long term in order to make money. It also has to be considered that each domain name not sold also has to be renewed yearly be a small fee.
Those trying to make a quick financial killing in this field will be those that are disillusioned and give up. It'll only end up costing them money and bring nothing in return.
Look at the 14 years it took Clark to take in the $2.6 million, and that was an anomaly for sure. It's happened before, and in some cases the owners have made big money, but mostly it's a game of buying and holding, while making incremental progress through the selling of a large number of domain names over a long period of time.
If you don't look at it that way, you'll end up being quickly disappointed. At the same time, good, well researched domains can average about $2,000 each when sold at auction. So there is a real business model, but again, it must be looked at as a portfolio you build up and hold, while setting minimums for bids.
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