Your Website Profit

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Domaining, buying and selling domains, is just like any other business. You want to buy low and sell high. The good thing in domains specifically is that they are limited. There can only be one Marketing.com or Google.eu. Register a domain for $9.99 and sell it for $200 and you get nearly 2000% ROI. You can see how profitable it can be.

Why is that a good thing then? It of course means that you will not easily find good unregistered domains, but it also ensures that the value of domains will increase with time. If you invest in currencies or the stock market, you’ll always have the chance of losing most of it. If you can appraise a domain correctly, you’ll get back at least what you paid for it.

As a beginner in domaining, you will quite quickly realize that all the ‘very good’ domains are, indeed, taken. That means that you have two options: to find and register ‘quite good’ domains, or buy the better ones from those who own them. Which choice you should take depends on a number of things.

If you decide to buy domains from others, you will need to understand the pricing. Do some research on how much has been paid for similar domains, check Overture for how popular the keywords are, and be careful. Most who sell quality domains are well aware of how valuable they are. You can make good deals, but it is very difficult. Therefore it might not be the best idea for a beginner.

If you decide to hunt for good unregistered names, there are a few things you should keep in mind. All the good one keyword dot coms that receive a lot of type-in traffic have been taken, but there are other kinds of domains still available.

• Typo domains -Mircosoft.com, MtSpace.com etc. There are so many variations that you can find some that are available. You have to be careful though, because the trademark owner can demand for the domain and threaten you with legal action.
• Long-tail domains -TroutFishingRods.com, RedSilkShirt.com etc. Though they are less likely to receive type-in traffic, there is a market - like Ive explained in my post on long-tail keywords, get enough of them and they add up. They are also good for SEO, so you can find buyers. Check Overture for some idea of the potential.
• Other extensions - Dot net, dot info, dot cn (China) etc. Even if a good keyword is taken as a dot com, it may be available on other top level domains (TLD). They won’t be typed in as often, but they are as good from a SEO perspective, so finding buyers is quite possible.

When you have bought, or registered the domains, you should find a use for them. You could just let them be, and wait for someone to buy them, but why not make them useful. The simplest option is to park them, but that will not bring great revenue. If you develop the domain, you can make a lot more. That requires time and effort, but is usually worth it.

Good luck with domaining. I suggest you either head to GoDaddy (a cheap and reliable registrar) to register new domains, or to Sedo to search for domains for sale. That’s also a place where you can park and list your domains for sale for free. To hunt for real bargains, head to DigitalPoint forums.

Ps. Yes, I’ve made a sale for 2000% ROI.

by Sutocu | October 4, 2007