Make Money Off Domain Name Investing

November 24, 2011 by  Filed under: Domain 

This is a unique time in internet history and the window is closing faster and faster all the time. This is the hottest investment opportunity since the invention of private real estate ownership.

What is that investment? Domain names.

There have been some record-breaking sales in recent years. Fund.com sold for $10 million, BoiseIdaho.com went for $175,000, Skireports.com slid into an $800k deal, DataRecovery.com raked in nearly $1.7 million.

Most of these names were purchased for less than a hundred dollars years ago. Talk about a return!

There is still plenty of opportunity today. Plenty. There are a couple of ways to approach this business.

1) Register generic domain names

Look for unregistered names. However, with this, keep in mind that all the one word generic dictionary words are taken, and a lot of the two word generic names are taken. But you can still often find two and three word generics if you work at it.

When looking for names, realize that clever isn’t the way to go. You should look for generic names. Names that reflect an industry and reflect search traffic.

Example: Cars.com is far superior to JaysAutoShack.com. Cars.com will rise to the top of the search engines for the term Cars, the other will languish in obscurity.

2) Jump on trends

Scan magazines, newspapers. Look for new trends, new slang words and register them before the words or phrases become hot.

Example: Not long ago I started hearing talk about Staycations. It’s a new trend of people staying home for their vacation time instead of traveling. I thought that’s going to become a major phrase. I looked-up staycation.com, but somebody had already beaten me to the punch.

However, important lesson learned.. trends are always happening. Read the paper and as many magazines as you can find and you’ll surely nab some of these increasingly valuable names.

3) Local domain names

This is a hot emerging market. While local domain tends to not fetch the headline grabbing sales, you can do quite well buying and flipping.

Example: Find local service names. NewYorkPetGrooming, BostonHospiceCare.com. Names should reflect local services. People tend to use Google instead of the yellow pages to look up information, which makes these names more and more valuable. You can get these names for registrations fees and it’s not uncommon to sell them for thousands in a very short time.

4) Buy aftermarket names

This takes some upstart capital. But find names you like that are parked and make offers. You can search the pages of Sedo.com to find names for sale or use DomainTools.com.

Example: Two years ago I purchased two names from SEDO.com. They weren’t cheap, the low five-figures combined, however eight months later I flipped the names for 450% more than what I paid. If I had kept them I have not doubt they would turn into thousand plus returns.

There you have it… some basic tips to help you cash in on this phenomenal new industry.

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