The Domaining Home Business Model for Entrepreneurs

May 16, 2012 by  Filed under: Domain 

Domaining or domain investing was the very first business transaction the public internet created even if the first private registration was not intended for that reason. Today, entrepreneurs have embraced domaining as a legitimate home business opportunity taking part in the exchange of hundreds of millions of dollars every year.

What is it about this home business model that is so attractive to entrepreneurs?

First of all, investing in domains is open to nearly everyone and you can get started for under $20 a year. It has great flexibility and many factors that investors can control to improve their investments. The internet is growing at astonishing rates, more than double that of the world population growth.

So, the domaining market is; financially accessible, flexible, and massive in size. What else could an entrepreneur ask for in a home based business model? Domaining could be considered the king of opportunities.

The domaining home business model is structured as follows.

  • Buy a domain name
    Domains can be purchased from an authorized Registar from the unregistered pool, on the aftermarket where already registered domains are put up for sale, or purchased directly from the current owners.
  • Bank It – Park It – Build ItOnce you have your domain(s) you have the choice of banking them and letting time do all the work waiting to sell for a suitable return. Or, park your domain(s) usually with some form of monetization on them usually in the form of simple advertising in the hopes of generating some revenue as you wait for a suitable time to sell. Or, you can build a website on the property with the intention of creating a revenue stream as well as increasing the end value of your domaining investment.

After registering your domain(s) and picking a path of banking, parking, or building, you have even more options. You can sit back, invest more, build more, market, improve the property, or seek out potential buyers or advertisers to increase your roi.

There are many opinions on what constitutes a good domain investment and countless variables people use to calculate the current and future potential value of domains. The truth is that in the end an investment is worth what someone is willing to pay for it but attracting a better price for the sale of a domain can be boiled down to:

  • Market/Industry the domain is in Is there a developed website
  • Does the website produce a current revenue stream How much traffic does the domain get and how much of it is unique traffic
  • Is the name brandable or contain valuable keywords Is the domain a.com Does the domain have age and credibility Is there room for improvements and growth
  • Does the web address have directory listings and relevant backlinks pointing to it

And the list goes on and on. There are numerous ways to increase the value of a domain investment and the more an owner works with these variables or what I like to call Influencing Factors, the better chance he/she has of increasing the roi.

Recap

  • Register a domain or buy one on the aftermarket
  • Bank it, Park it, or Build it. Pick an investment path and take the steps.
  • Hands on or hands off, you can work the Influencing Factors or you can let time take over while you pursue other pleasures.

As with all investing, when investing in domains there is always a risk of losing money, but unlike traditional investment markets, domaining has many Influencing Factors you can control to increase value and roi.

Happy Domaining!

I am an entrepreneur not a writer, but that does not stop me from trying. I have 13+ years experience of doing business on the internet. I watched the bubble grow, pop, and steam it’s way into the web 2.0 we are seeing today. I invest my time in domain investing, product creation, internet marketing, web design, and putting my spell checker to good use.

Learn more about domaining or domain investing at: http://www.tldmo.com

Internet Entrepreneur, Internet Marketing, Domaining

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

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