Is Domaining Profitable Anymore?

December 8, 2011 by  Filed under: Domain 

When the internet was burgeoning in the 1990’s many people began making a considerable amount of money from the business of domaining or domain flipping. Similar to real estate sales, a person who engaged in domaining would buy up all the domain names or URL addresses of websites in the hopes that another, usually larger business would then purchase the domains at a higher prices.

There was a considerable amount of money to be made back then, in one case a person who had purchased the domain drugs.com for a small amount of money sold it for over $800,000 from a large corporation. But with the great expansion of the internet since those times the idea of making a profit of domaining or domain flipping seems to have gone by.

Or has it?

Nowadays domain flipping is much more complicated and carries a much greater risk of being stuck with many unwanted domains and you do not making a profit. For those who do make money in domain flipping often they view the expired domains as their area of choice. Most domains that expire are worthless but there are those that are worth a great deal if the domain was valuable or is sought by other companies. Keeping a sharp eye out for expired domains can earn you money from domaining.

Whether you choose to invest in expired domains or new ones that might have potential, remember that the shorter the address of the domain, the more valuable it is. This is domaining 101 for those new to the domain flipping.

Another good option is searching for foreign markets who have yet to be fully saturated with domain such as the UK and Germany for example which still have some open areas similar to the conditions in the United States before the tech bubble collapse of 2000.

Domaining is a rough and tumble world and you must not only be fast in making decisions, you’ll also have to take into account those who are less than honest. There are plenty of hucksters who will actually trick you out of a small amount of money using an old but reliable technique.

For those who are domaining and also for people who just happen to purchase a domain that may be viable for another company, they often get offers of a great deal of cash to purchase their domain but it carries a catch. If you pay just a small fee, they will have the domain “appraised” to assess its true value. You pay and the “assessment” comes in at an even higher value than the offer, but suddenly the buyer has lost interest, but does have your “fee”.

That is a straight scam that domaining can bring in, you must be on your guard for such offers since the actual value of a domain is based only on what someone is willing to pay for it.

All in all, there is still money to be made in domaining, but you will have to learn your craft and know when to move on opportunities quickly if you are to make a profit.

I am a father of two gorgeous kids and lover of WordPress. My first intention was writing reviews on top webhosting and domain name providers but with time I’ve got more involved with WordPress and Web Design and I love it. You can visit my site DomainsFlow.com.

Article Source:
http://EzineArticles.com/?expert=Dragan_Palla

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