Last year China introduced the world to bulk trading of domain names. The traditional approach is for investors to buy one or two good quality domain names at a time, and then wait for end user companies to buy the domain names in order to develop websites.
However, bulk trading is about buying much lesser quality domain names but at very cheap prices, and then flip them for a profit. Say, you buy a domain name for $10 and immediately flip it for $15. That gives you a return of 50%. If you buy and then sell 100,000 domain names of such quality, then the total profit becomes very significant. In this case, the domain names are never intended for website development. In other words, it’s about speculation — pure trading among investors. Bulk domain trading is not a new concept. In currency trading, for example, 95% of currencies are traded everyday among speculators with no intention of using the currencies to purchase products or services.
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However, bulk trading is about buying much lesser quality domain names but at very cheap prices, and then flip them for a profit. Say, you buy a domain name for $10 and immediately flip it for $15. That gives you a return of 50%. If you buy and then sell 100,000 domain names of such quality, then the total profit becomes very significant. In this case, the domain names are never intended for website development. In other words, it’s about speculation — pure trading among investors. Bulk domain trading is not a new concept. In currency trading, for example, 95% of currencies are traded everyday among speculators with no intention of using the currencies to purchase products or services.
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