Monthly Archives: January 2019

How to Make a Profit On Domain Names

It is said that the land rush today is a virtual one, taking place online through the purchase of domain names. There are certainly fortunes to be made in domain names, as previous sales of single names have commanded six and seven figure price tags while whole portfolios have sold for tens of millions of dollars. But that is the exception to the rule, and most portfolios are valued at much, much less. Some portfolios, or single domains won’t sell at all, so where is the value in that? In this article, we will look at some of the different methods professional domainers use to build a quality portfolio of valuable domain names and how they make a profit.

The first thing to consider is why you want to make money with domain names and what you hope to obtain from them. Are you hoping to purchase low and resell the domains for a profit? Or is it an investment with a long term strategy of website development and growth? There are many different paths to take when participating in the domain after market, and understanding where you want to go is the first step towards getting there. Some paths are riskier than others, so evaluating your options ahead of time will help you become better prepared for the challenges to come. Not everyone can make money with domain names, but the persistent and motivated often do. Once you have a clear vision of what you want, it becomes much easier to make choices that will move you in that direction.

The most obvious way to make money with domain names is to buy low and sell high. This is one of the most common methods used on the stock market and can be very profitable in many domain situations as well. All domain names start out at the registration fee, which can be as low as six or seven dollars per year for .com, .net, and .org domains. If you happen to register a domain that others perceive has value, the difference in the registration fee and this perceived (and/or actual) value can be a nice profit for the domain owner. Domainers who make money using this method often follow trends in the domain marketplace, registering keywords of new Top Level Domains (TLDs), registering and reselling desirable domain patterns (three letter domains, three character domains, etc), or just following what’s hot or picking up established domains as they expire (which is a method in and of itself). The general idea here remains to buy a domain at a bargain and find a buyer who also sees value in the domain and is willing to pay a premium for it.

The upside to reselling domain names is that you can generate a decent amount of profits in a relatively short amount of time. The downside is that it may not always go as planned, and you will not always find a buyer for your domains right away. It can be tough to find buyers for specific names and if domains aren’t reasonable priced, a buyer may never appear. Another downside is that you only make money off your own physical effort. You have to take the time to find domains to purchase, follow through with the purchase, and then find a buyer and complete the sale. This process can take quite a bit of time and involves a degree of risk. You may also find yourself holding onto domain names a lot longer than initially thought and end up playing the waiting game. With most domains, there are much better ways to produce profits, but don’t discount this method for its potential ability to generate income in a short amount of time with the right domains.

Paid parking is another method for making a profit on domain names. This works for some names, mostly generic domains, typos, or names that receive steady traffic. There are many different parking programs available, but the basic idea is to sign up with a paid parking service and then send your domain traffic to their servers. Their servers will then display ads and search boxes on template generated websites, and you earn a portion of the revenue if anyone clicks on a link or purchases an advertiser’s product. This system works when the domain earns more revenue per year than the cost of the yearly renewal fees. For instance, if you pay $12 per year for registration fees, the domain would need to earn slightly more than $1 per month to be a worthwhile option. Any less and it costs more to maintain the domain than the amount of money the domain produces. The plus side to this method is that once the domain parking is setup, you don’t have to do anything to earn income as long as your domain receives traffic.

Many domainers will park new domains they purchase in order to gauge traffic and see if the domains will be profitable on a paid parking service. If a domain shows the potential to make revenue, they will most likely keep it for the passive income. Otherwise, they will look at other options for making a profit on the domain.

You may also consider developing a website around a domain name. The site could sell products, subscriptions, offer content and display advertisements, or offer varying combinations of techniques to generate revenue. The idea is to build up a profitable website and in essence, create a resellable asset that produces income. Having an established website (profitable or not) can greatly increase the value of a domain as well as make it appeal to more buyers. With this method, you can build up websites specifically to resell, or hold onto them for a continual income stream.

As competition in the domain marketplace becomes increasingly fierce, more domainers are becoming webmasters in an effort to maximize their profits and revenue while dramatically increasing the value of their portfolios.

Hopefully by now you have an idea of some of the main methods used to make money with domains. There are countless other methods for turning a profit, and numerous variations of the methods described in this article, but having a base of knowledge provides an excellent starting point. The key is to know what you want beforehand, learn as much as you can about specific methods that will help get you where you want to go, and then keep at it until you succeed. Many people fail because they give up, or don’t do the research beforehand and end up losing money in bad deals. Making money with domain names isn’t a get rich quick scheme, but with enough effort, motivation, and patience, anyone can succeed.

Domain Names–What To Consider When Choosing One

Domain Name Registration

Never register your domain name through your web hosting company however attractive the deal might appear. Why? Well one day you may wish to transfer your domain name to another web hosting provider and your current web host may not take kindly to this. It is not unusual in such cases for the web host to charge a transfer fee and even in extreme cases to unequivocally refuse the transfer of your domain name. If such a situation arises you can report the offending party to the International Corporation for Assigned Names and Numbers (ICANN).

Another thing to consider when registering your domain name is not to rely solely on your domain name register to ensure that the domain name you have in mind is available and does not infringe on someone else’s trademark rights (unless you enjoy being sued). To be doubly sure your domain name has no trademark infringement issues, after conducting a search for its availability on your domain name register’s website, you can also check at the United States Patent and Trademark Office (USPTO) http://www.uspto.gov.

When registering your domain name it’s a good idea to register it for more than one year. The reason being that, other than the usual discounts you get for multi-year registrations from most domain name registers, Google (and perhaps the other search engines) consider multi-year registered domains as less likely to be spam sites. Consequently, right off the bat your site will have a search engine advantage (at least with Google), such as a shorter evaluation period in the Google Sandbox.

A final note about domain name registration; there are plenty of domain name registration companies out there, all eager and equally willing to register your new name. Domain name registration prices range from as little as $10 a year up to $35 per year and beyond. Generally there is little point in opting for the more expensive registers because you more or less get the same service. In fact some of the cheaper domain name registration companies provide better quality service.

However whatever service you use, make sure that your domain name is registered in your name. Some less scrupulous domain registration services have been known to register new domains with their own information. You can verify that your domain is registered with your particulars at: http://www.internic.net/whois.html.

The Domain Name Game

So what kind of domain name do you want? Do you want to pick a domain name incorporated with a targeted keyword, or do you want to take the memorable-brand route that the likes of Google, Yahoo and Amazon (to name but a few) have done with astounding success. Well, if your website is going to be business related or involved in some form of commerce it makes sense to have a well-searched-for-keyword incorporated within the domain name. The majority of online businesses are still found through search engine queries. By and large though, a good rule of thumb is to incorporate the most searched for term (for your market) in your domain name.

The shorter your domain name the more memorable it’s going to be. However you’ll discover that most one-word/two-word domain names have been snatched up already. One alternative you’ve got is to hyphenate your targeted keyword with another word. The jury is still out about hyphens though, but most seo experts concur that hyphenating a string of words makes a long domain name more search engine friendly. The downside is that when it comes to word-of-mouth dissemination most folks won’t bother including those pesky hyphens, with the resulting consequence that intended referrals to your domain could end up on your competitor’s doorstep. So as you can see, the whole process of naming your domain is a fine balancing act.

Cutesy Artsy Domain Names

There’s a budding artist in all of us waiting for just the right moment and place to show the world we are the new Leonardo da Vinci. Be that as it may, but naming your domain is not the place to express that inner artist. Avoid cutesy names interspersed with numbers in place of words (e.g., 4 instead of for), they’ll only confuse potential customers and torment you with heaps of regret somewhere down the road. In fact the best rule of thumb is to avoid numbers in your domain name altogether. However, if on the other hand your domain functions merely as a cyber-platform to let an uncaring world know you exist, then by all means let loose!

Bottom line…your domain name is your online identity, so try to choose something that is memorable, fares well with the search engines, and also inspires confidence and respect.

To Dot.com or Not to Dot.com

These days there’re more and more choices for domain name extensions. This is great news because it is getting increasingly difficult to find a good domain name ending in .com that runs under twenty letters (okay that might be a wee bit of an exaggeration but you get the point). However the drawback with using anything other than a .com extension is human nature. You see people are creatures of conditioning and habit, and given a choice of precisely similar domain names, (other than the extension) you can bet most of us will instinctively beeline for the domain name with the .com extension–Without question the .com extension is the most recognizable.

Also think twice before settling for a top level country code domain such as co.uk. Unless you are located in that region and ship primarily within the area, such a domain name could have a negative impact on your business. Think about it…a potential customer based in the U.S. or another part of the world is not going to relish the prospect of forking out a mini fortune for shipping and handling fees when they can easily find a more local competitor. In the same vein try not to regionalize your domain name (unless your business caters to a market found only within that region) because you’ll probably lose potential customers who reside elsewhere.

On a final note, if you anticipate a lot of your traffic is going to come via word-of-mouth referral, you might consider registering similar domain names and redirecting to your main url (e.g. [http://www.africasafarizone.com] and [http://www.africansafarizone.com]) before cyber-squatters (people who register domain names in hopes of selling them for a profit) get wind of your growing success and beat you to it.

Why Should You Sell Domains?

“Money for nothing and the chicks for free”:
that is the perfect slogan for the life of people who buy and sell domains. Why? Because if you make it big in domain names, you are pretty much set for life. Sure, I may be making thousands a month with little investment, but the real big fishes make that a day. It might seem crazy, but it’s true. I do not work a day job, because I don’t need to: I sell domains. I do not labor 8 hour work days: I sell domains. That’s right, domains can make your life a lot nicer than it is now. If you are looking into domain investing, but are still on the fence as to whether it’s worth it, I hope that this article will help you make your decision.

Different people (and not only those who sell domains) have different opinions about investment. Some people will tell you that you shouldn’t spend money to make money. Investors will tell you that you should spend a lot of money to make money. The truth is that they are both partly right. As the old adage goes, ‘nothing in life is free’. All great businessmen needed capital to start their business. Whether their parents gave them money, whether they used to work a day job, or whether they took out a loan, they all input some money into their work. Benjamin Franklin wrote that “money begets money”, and that is as true now as it was back in colonial America. But a clever investor can compromise: you do need money to get rich, but you only need a bit. This is where domain names come in: Buy domains to sell domains and you make fortunes, but more importantly: buy domains to sell domains and you never lose out.

Domain names cost between $4-$9 to register, and they can sell for thousands. This phenomenon in the market is dissimilar to anything seen before. Domains sell for the price of diamonds, but they are not rare. Domains can be sold for the price of a space shuttle component, but anyone can sell them. Domains cost under $10 to purchase, but they are sold for 1,000 times that amount. Domain names are the perfect investment simply because of these qualities. They are a casino players’ dream: they are a minimal risk with high payouts. And even if you are unfortunate enough to buy a domain which you can’t sell (which is very unlikely, as almost all of my domains have brought in variable amounts of profits for me, but profits nonetheless), it is only a $4-$9 tax write off.

Yet the thing about selling domains is that it’s an intelligent business. It might only require a minimal investment, but it certainly isn’t something that you can just throw money at. To sell domains, you need more than the $4-$9 needed to register the domain. That’s right, to sell domains you need the ‘know-how’ of a modern day investor. This might sound pompous and grand, but it really isn’t: there is a bit for you to learn before you sell domains, but it really isn’t too hard to grasp. The successful domainers know how to buy domains cheaply and sell domains at high prices. They know how to acquire domains which inherently sell for high prices, and they know how to turn any domain into a gold mine. Selling domains isn’t just a ‘buy domain, sell domain’ game, it is a game which has rules; And if you know these you will definitely do well. While the rules as to how to sell domains may be easy, most domainers do not know them… and most domainers are losing out on their most juicy opportunities to sell domains.

What does all of this mean? Buying domains to sell domains is a great investment: it has minimal risk, it has high profits, and it is open to just about anyone with a credit card to buy the domains and a bank account to deposit the profits made from selling domains. But before you go out and buy domains, get informed. Nobody can just sell domains and sell domains without knowing how the big guys made it. Buy physical books on investment, eBooks on how to sell domains, and listen to the latest trends in the industry. As soon as you master the rules of the game, you will win, and the prize is usually valued in the thousands of dollars. Since the internet is growing incredibly fast, if you know how to sell domains now, you have a pretty nice life ahead of you.