When it comes to ways to make money on the Internet, domain name investing is one of the easiest to get into. It is fairly simple to start and it can pay off rather well for a small investment. To open the doors on this investment opportunity, it is important to understand how it works.
Getting into domaining, as it is called, requires nothing more than buying domain names and parking them via parking services. The other option is selling these domains to other investors. The practice does take a little effort to master, but it can be well worth the effort. Financial returns from domaining come in one of two ways – resale value or ad revenue.
Getting started in domain name investing involves buying the site names, registering them and then either parking or reselling the sites. How much money one can make depends on the traffic flow the domain name pulls in naturally or how sought after the name happens to be by others.
There are several ways to determine what kinds of domain names to buy and register. The most common ways center on “type-ins” or “typos.” Typos are nothing more than sites whose names are similar to other existing websites or brand name products. The typo sites obtain natural traffic when people accidentally mistype website names or brand name product names into their search engines. This kind of buying tends to be a little tricky, most especially when brand name products are being used. Many investors don’t like the typo route because of potential legal issues that can arise. Another option is to buy actual “type-ins.” These are names that reflect common web searches. For example, “babygirlclothing” or other real terms and words that are used in searches are used for the domain names. This route is considered more above board. A final option for picking sites is to find those that were formerly used and still have traffic and backlinks. Buying these and parking or reselling them can return decent rewards.
There are many options to go about buying and selling domain names. Some people buy domain names in bulk from places like Moniker.com and then research them to see if they have money-making potential. Other options include going through domaining forums, such as NamePros.com or DNForum.com. These sites are used for buying and selling domain names. These are traded just like real estate might be bought and sold. It is a buyer beware kind of world though. Not all deals come through in the end. Some sites offer a seller and buyer ranking system to enable buyers to check out the integrity of a transaction. Other options for protection include escrowing the money through a payment service, which I prefer.
Figuring out how much domain names are actually worth can be the trickiest part of this type of business. It typically comes down to what a name might be worth to the buyer. It is possible to request traffic and revenue statements, especially if buying through forum trading sites.
Once domain names are chosen and purchased, there are a few options for actually making money off these sites with little to no work. Parking services are the most common route for making this happen. These services allow people to “park” their pages with little or no content. This means the pages will pop up as a result of an Internet search. While content doesn’t go along with the package, the landing page can have text ads. The domainer that owns the domain gets paid for the returns on those ads. The other option is to simply sell the domain names to those who want them for further development of their own websites or to reap natural ad revenues.
Parking services like Parked.com and Sedo do have a few rules domainers need to follow. While these sites allow for text ads on pages, they do not allow site owners to develop backlinks. They do expect traffic that comes in through more natural and organic means. This includes traffic from accidental hits, routine web searches and existing backlinks. If site owners try to develop traffic, the parking sites can remove their pages though.
Getting into domaining can be one of the easiest ways to make money via the Internet. It requires very little effort. Using this practice to its full potential will take a little time. Although some forms are not considered as legitimate as other, the overall business is one that works quite well for many people.