Mouse.com recently sold for $125,000 and Keyboard.com recently sold for $100,000. Sedo says that the domain buying and selling market amounted to $77 million last year. Obviously the days of huge domain sales worth hundreds of millions are long gone. But from time to time, large domain sales do take place. The lucky few who got their hands on a top level .COM dictionary word can make a very good return on their investment.
Domains have had an annual growth rate of 30% over the last five years.
Sedo’s Jeremiah Johnston says that domain values typically increase over time. However, he says that a better option for would-be domain entrepreneurs is to turn low quality websites on good domains into profitable websites. Once the site’s value increases, flip it for a healthy return.
Johnston says that good value domains are words people typically type into the address bar or search for on a search engine. He also says that domains with targeted demographics usually make good money when parked.
You can see his full interview at BusinessWeek.