I get asked this question at least once a day and the answer changes from time to time. It is a very hard question to give a definitive answer to. I have bought and sold domains for most my time online. In fat it was the very first thing that I started out doing. No matter what project I am working on my side business is and always will be domains. They are like online property, intercultural goods which I can flip for profit. Although the return is not huge, it only takes that one major find to hit it big (not everyone is so lucky). It is more a hobby for me now and anyone that buys domains would tell you that once you start you really can’t stop. I have registered keyword and premium domains for over 6 years now. I have sold a lot, parked others, developed many and let most expire.
I know that there are domain investors like Mike Mann who own over 350,000 domains charged at $10.15 a year each (he gets a discount from this price I am sure) and still registering hundreds on a weekly basis. I know that there are people like him who are making a very nice living of domains and selling them for 6 and 7 figure sums. It is all about research and a lot of it is about luck. Mike has programs which find dropped or unregistered names for him to buy. He makes so many sales because any time you search for any generic name you can be sure that he owns it already. He runs a very successful company called Buydomains.com. He has been posting on facebook about some huge sales that he has been making recently.
I myself have over 2000 domain names. Some good some not so good, but then again who is to say they are not worth something to someone? This brings me back to the original question “what is a domain worth?” A domain in my opinion is worth what ever someone will pay for it. The market and need for something determines the price. Yes you may sell now for $1000 and in a few years see its worth thousands more. But the thing is to sell at the price your happy with and then you can’t go crazy if it does increase in value. The fact is that someone is buying the domain with development in mind. If you have no intention of developing a domain and receive a good offer then you should take it.Time goes very fast online. What is worth something today may be worthless tomorrow. One of the main tips about domaining is to be in it for the long run and don’t expect to make a quick buck…cause it aint that easy! It’s a gamble!