The Domaining Game
Domaining is the act of buying domain names as investments. It’s easy to understand the value of a domain name as a place to set up your online business, but domaining generates revenue with little effort, and no Web page development on your part. By utilizing a few key strategies, domaining can be a lucrative, low-energy business venture.
Domains for Sale
As in real estate, domain names are more valuable depending upon their location, or visibility, on the Web. Just as properties in the best locations are hard to come by in real estate, valuable domain names are often in high demand. One key difference in the domain world is that in-demand names are always shifting with the trends. If you can predict great brand names in advance (i.e., yahoo, google, facebook, etc.) or if you can acquire names related to a developing trend or idea, your domain name may be worth more to someone else than the price you paid for it. There is no guarantee that your chosen domains will be worth something in the future, but the investment is minimal ($6-$9 per domain) and can be extremely lucrative if your speculations are correct. Once you buy a few domain names, you can put them up for sale on specialized Web sites that that deal in the sale of domain names.
Traffic is a valuable asset on the Web, and if your domains generate traffic, you can make money by simply “parking” on a name. Parking is the act of using a parking service such as Sedo or Fabulous to put up simple one page Web sites on your domains. The pages will have advertising links and information based on targeted traffic. Parking services are free, and once you register, you simply point your domains to the parking service DNS servers and that’s it. When people follow these links, you receive a portion of the revenue generated by the parking service.
Domainers understand that the most valuable domain names are those that will draw the highest numbers of visitors. Type-ins occur when a user enters a search word directly into the address bar (i.e., dogwalkers.com). Not surprisingly, type-ins generate a lot of traffic, and clever domainers can cash in on this by anticipating popular type-ins and buying them up. While a lot of obvious keywords and phrases have already been registered, new trends and products are constantly evolving. With type-ins come typos, and domainers can cash in on mistakes like goggle.com and faceboook.com. and park on these domains.
If you have the capital up front, buying premium domains that already have established income may be a smart decision. Be aware that the more income the domain generates, the more it will cost you. Sites like DomainState and SnapNames offer premium domains for sale.
Domaining can be a great way to generate extra income and in some cases may even be a lucrative business on its own. Its best to work your way into domaining slowly, so be sure not to spend too much money (and put yourself at high risk) right away.