Most domainers buy and own names. They “park” on sites, where they develop content in the form of Web links and ads, to generate income and increase the value of their virtual real estate.

“It’s a long-term investment, like owning a home,” says Lawrence Fischer, vice president of business development at SmartName.com, a company that owns and manages thousands of domain names, including Stockquotes.com. “But if a major brokerage firm came along with a big offer, I would be willing to listen.”

Plenty have been willing to pay. Sales of 5,851 domain names generated $29 million in 2007, compared with the sale of 3,813 names for $15 million in 2006, market researcher Zetetic says.

Venture-capital firms, too, are betting on domains. Last year, Highland Capital Partners plunked down more than $20 million on YesDirect, a holding company with 600,000 domain names. YesDirect is developing content for websites using the names, says Bob Davis, a managing general partner at Highland.

Further underscoring the hot domain-name market: Its biggest trade show ever took place in Las Vegas last week. About 400 to 500 domainers and investors took part — double what the same show drew a year ago, organizer Rick Schwartz says. Officials at Yahoo and Google, both of which own domain names, attended. There, the largest live domain-name auction produced $2.1 million in sales in three hours.