The practice of domain name investing is becoming a popular choice for those who want to make money on the Internet. This investment practice is fairly easy to get involved with and can pay off very well for a small investment. It is important to understand how it works to be able to open the door for big returns.
Getting into domaining, as it is called, requires nothing more than buying domain names and parking them via parking services. The other option is selling these domains to other investors. The practice does take a little effort to master, but it can be well worth the effort. Financial returns from domaining come in one of two ways – resale value or ad revenue.
Starting out in domaining involves buying website names and having them registered and parked or reselling them to other investors. How much of a return an investor will make will depend on the traffic a particular domain name pulls in or how sought after the name tends to be by others.
There are a few methods to use for figuring out what types of domain names to register and buy. The most common are “type-ins” or “typos.” Typos are names that are similar to existing websites or brand name products. Typo sites receive traffic due to accidental “typos” people make in trying to reach other sites. This type of buying can get a little tricky, especially when trademarked names are being used though. Some domainers don’t feel the typo route is the best way to go for legality issues. Another route to take is to buy actual “type-ins.” These are domain names that are commonly used in web searches. For example, “organicdogfood” or other actual words that might be used in searches. This is considered by many to be more legitimate. Another option is buying formerly used domain names that have traffic or backlinks and simply parking them or reselling them.
The options for buying and selling domain names are many. Some investors choose to get their names in bulk from sites like Moniker.com and then research them at a later time to determine their money-making potential. Other buyers go to domaining forums like DNForum.com or DomainState.com These forums are designed for the buying and selling of domain names. On these sites, domains are traded and sold in much the same manner as real estate is in the “real world.” These sites do present some challenges though; it is up to buyers to figure out if a sale is legitimate. Not all deals work out. Some of these forums, however, do offer a ranking system for buyers and sellers to help with checking the integrity of a sale. Some buyers and sellers simply opt to use escrowing services to handle their deals to ensure they go through smoothly.
Arriving at the real value of a domain name can be the hardest part of this venture. The price and value tends to hinge on what a buyer believes a name is worth. Buyers can, however, request revenue and traffic reports in some cases to help them figure a fair price.
After domains have been secured, there are ways to really make them pay off financially with little effort involves. Parking service sites are the most common way to make this happen. Services like these let owners “park” their pages with little content on them. This means the pages will appear in web searches, but they won’t contain a lot of content. Although content doesn’t go with this deal, these pages can have text ads on them. This means the owner of the domain name will reap the advertising revenue if the sites are viewed and used. The other common option for making money is to sell the domains to those who want to develop or park them.
Parking services like Sedo and Parked.com have their own rules domainers must follow. Although these services do allow text ads on parked pages, they tend to frown on backlink generation. They expect that traffic that comes in will be of natural, organic means. Simply put, they want accidental hits, normal Internet searches or existing backlinks to drive traffic. If site owners do too much to generate traffic, their pages can be taken down.
Getting into domaining can be one of the easiest ways to make money via the Internet. It requires very little effort. Using this practice to its full potential will take a little time. Although some forms are not considered as legitimate as other, the overall business is one that works quite well for many people.
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