The domain market is a massive and thriving industry, filled with eager buyers looking to capitalize and procure a valuable domain name while they are still available. Just as there is a sea of buyers looking for good domain names, there is an entire ocean of domain sellers, and some of them make their living off of selling domain names. The art of buying a domain name specifically to sell it is called domain speculation. There are entire companies that specialize in domain speculation. Some sites even go for hundreds of thousands of dollar, based on the name alone, with no active site included! Considering it only costs about ten dollars per year to register a domain name, domain speculation may be the best investment you could make.
The following tips will help you be successful in the domain speculation industry.
Do Not CyberSquat
Not to be confused with domain speculation, cybersquatting is an illegal practice that often results in lawsuits. Cybersquatting is the act of registering a domain that has been trademarked by another company, in the effort of extorting funds from the owner of the trademark for the domain. However, many times cybersquatters will focus on a domain name that has not yet been trademarked, but instead is a likely target of a particular company. For example, if your company name is RandomDomainCo INC., and your website name is RandomDomain.com. The cybersquatter may buy domains like TheRandomDomain.com, or even misspelled variations like RadnomDomain.com. If you want to start a successful domain speculation business, you should steer clear of dirty tactics like this.
Don’t Be Greedy
Being greedy is a sure way to fail in any business, especially in the domain speculation business. If you’re aiming to make thousands of dollars off of each domain, you’re probably going to be let down. The goal is to make money fast by selling as many domain names as possible. This means you’ll need to focus on realistic goals, rather than high value short .com domain names that are nearly unattainable. You may even have the bankroll to buy a very valuable domain name in hopes of selling it, but before you jump to a conclusion, you’ll want to make sure you’re not overpaying, as you may never see a return on your investment.
Domain Swooping
Perhaps the best way to procure valuable domains is to snatch them as soon as they expire. There are currently more than thirty million domain names that have been purchased and are now expired. Some of these domain names are excellent, and some of then once housed profitable domains that may even still have live backlinks online! The most valuable expired domains are the ones that have just recently expired, as the marketing efforts of the previous owner may bring instant traffic if the website is resurrected in time. If you can manage to find a domain that has recently expired, has plenty of backlinks, and is still receiving plenty of traffic, you may be able to capitalize on it and sell it for a lot of money instantly. As I mentioned above it is not wise to depend on situations like this, but it is optimal to keep your eye open for such instances.
March 12th, 2010 at 12:14 pm
Interesting blog, not like the others!
March 12th, 2010 at 12:50 pm
Very good advice all round. There are lots of domains that expire that have real value – so get searching and move fast!
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