Last month, in an article at DomainInformer.com,  Alan Dunn told all of us, “It’s Time to Quit Domaining.”

Then, as a service to his readers, he put forth that the term “Domaining” itself has yet to be defined. For a practice that’s as old as the web, one would think this is either a naive assumption or a bold statement.

But, frankly, he’s right. Most folks know about the internet now, they know what a web site is and they don’t scrunch up their eyebrows anymore if you tell them you are a “Web Developer.” They might even think they need a website.

But tell them you are a Domainer and their eyebrows furrow as the words, “What the heck is that,” slide past their lips.

What is a Domainer?

The term “domainer” can best be understood first, by understanding what a Real Estate Investor does (although there are probably a slew of Trademark Attorneys who would disagree) and then by understanding how the real estate investor differs from a Real Estate Developer.

A real estate investor buys real property for profit. When the investor finds a willing buyer, the investor sells the property. If making a profit on the property entails “squatting” on the property (i.e., holding title to the property until a profit can be made), then a real estate investor squats. Note that this is not considered illegal in real estate.

Similarly, a domainer buys domain names to make a profit. Like a real estate investor, sometimes, most times, a domainer must hold on to the domain name for some time before finding a buyer. Some erroneously refer to this as cybersquatting. It’s not. Buying a domain name and holding it instead of developing it is not cybersquatting.

Some Domainers are also Developers But Not All Developers are Domainers

Going back to the Real Estate Investor analogy, some real estate investors are also real estate developers. They have a vision of profitability based on putting the real estate to some use and developing it for that use. The intention is to buy the land, develop it then sell it for a profit.

Some Domainers are also Web Developers but not all Web Developers are Domainers.

A web developer typically builds sites on domains owned by others using the tools of the web development trade: HTML, CSS, XML, php, Ruby, Perl, Dreamweaver, PhotoShop, a text editor. The goal of the web developer is to produce a website.

Some web developers are also domainers. They buy domain names and develop websites for that domain. The goal of the web developing Domainer, however, has not changed: buy a domain name and sell it for more than s/he bought it for. If building that site creates a stream of steady, verifiable traffic or revenue from product sales, all other things being equal, this should increase the attractiveness of the domain name and the profitability at sale.

At this point, I think it is safe to define a domainer and the industry of Domaining.

Domainers buy domain names to make a profit; some make a profit only at sale, some profit along the way through development. Domaining is the practice of buying domain names for profit. Like real estate investors, domainers purchase with the intention of profiting.

Perhaps if industry folks referred to themselves as Domain Name Investors, the nature of the business would be clearer to others.

As it is, the term, “domainer” has taken root in the industry.

Domaining Philosophies

Domainers appear to be separated into two “camps” or philosophies. Some domainers buy and park their domain names, banking on type-in traffic or simply making a profit at sale. Rick Schwartz and Frank Schilling have a bit to say about buying and holding domain names.

Others buy and develop their domain names, banking on selling a product online, making money with affiliate advertising, generating revenue with PPC (pay-per-click) advertising and increasing the perceived value of the domain by creating a stream of traffic.

As a domainer, this is my personal philosophy as well: the money is in the developing and for good reason.

You’ll find Domainers on both sides of the fence; some of us develop, some simply park their domains. Most of us probably do a bit of both with the distinction being only our initial intentions. For sound explanation of the reasons behind developing versus parking, have a look at Shane Pike’s article How To Really Make Money with Domain Names at AskShane.org.

All of us, as Domainers, want to make a profit selling our domain names. So, whether we buy and park or buy and develop, the end goal is the same: Sell the Domain Name for a profit.

That is what separates us from web developers and defines us as Domainers.