Can We Really Profit From Buying And Selling Domains For A Part Time Project (Eugene Yeng)
Mar 11, 2011
Many people will answer the question, "Can we really profit from buying and selling domains?", by saying "No". This is clearly wrong, because many Internet entrepreneurs are making a very good living doing just that. There are several ways in which this can be done.
Buy low, sell high is the old adage from the stock markets and that applies just as much to domain names. Once you've bought, then you must find a way of adding value, or you should be confident that the value will rise for some reason. You could boost the worth of the website by monetizing it to some extent, to show its value has increased.
Alternatively, you could seek out domain names you think are likely to become valuable at some point in the future. This may be because you have inside information on an upcoming product, or simply that you study the technology or business pages and you have a flair for predicting trends in your particular field. It may seem like all the possible names have been taken but by being creative, you can always find something that can turn in a profit.
There is some uncertainty as to whether the top level domain name matters. You should always try to buy the . Com name if it's available as that will hold its resale value better than others. The way you plan to monetize the site will determine how much more valuable the . Com TLD will be than others. As far as search engines are concerned, they don't place any extra value on one TLD over another. You may be able to make up novel names from new TLDs as they are released, so be aware of new ones.
You need to make some money from your domain name whilst you're waiting for someone to buy it, so that you're covering the costs of hosting it. AdSense ads are a good way of achieving this and there are a number of sites that operate an income sharing scheme if you park with them.
Don't think that buying up unused brand names will benefit you in any way. Quite the opposite, in fact. Although this has worked in the past, the law has tightened up on misuse such as this and you can be forced to give the domain name to the genuine brand owner. Nor does buying similar sounding names or typographical errors help, because that is also considered to be abuse and will be stopped.
Whichever strategy you choose to use, you should be aware that there are many tools on the web for those wishing to earn money by this means. You'll be able to source tools for automating the finding, selecting and buying of names, whether you are doing it on a large scale or as a small, spare time activity.
Should the question arise, then, "Can we really profit from buying and selling domains", you can confidently answer Yes. There are some who will contradict this, saying that the glory days of domain name profits are over because of the "big boys" taking over. Sharp individuals will always find a way to make money by being creative, however.
About the AuthorWondering whether you can really profit from purchasing and selling domains ? Get the low down instantly in our guide to Malaysia Website Design and everything you need to know about how and where to find the best Malaysia web designer ..