Domain Names

Every website has to have a domain name. And there are webmasters who are looking for a specific name to fit their newest ventures. This need gives domain names a value, and thus a market to buy and sell them. Often this market is compared to real estate because in cyberspace, a domain serves as a location marker in the vastness of the internet. Having an easy one to remember, or one already being pointed to by outside links is very valuable. It would be like having a store in a prime location in the center of your town where thousands walk by. As they say, "Location Location Location."

Registering a domain at a registrar like www.GoDaddy.com is easy and generally costs around $8-10 (even lower during sales, coupons and bundle buys).

Domains can be monetized three different ways. They are:

Investment in a domain portfolio

These are domains that are bought with the intent to resell them at a higher price than you paid for them. That higher price can depend on several factors. Raising the price can be a memorable name, a name that has links from other sites already, a higher Google PR rating, traffic, short, real words, or just old fashion need. People are often willing to pay high prices to get just the domain name they want for their site. Sometimes a domain may not seem to be that exciting, but to the right person, it's the holy grail. And not all long names or nonsense words are worthless. Look at woot.com and ebay.com. What did they mean before they become some of the biggest names in the industry?

Learning what makes up a good domain name is half the battle. Once you learn this, the world is your oyster. One such program that our readers talk about is Domain Sales Machine. Such information can save you a lot of time and effort and money avoiding poison names. Names containing trademarks, for instance, can not only get you sued, but you could lose the domain and are difficult to sell, even at the registration fee.

Website Development

Like the above, a good domain name is key. But by creating a website to go with the domain, you have the opportunity to take a particular name and brand it to your wishes. A domain name with a website is often of bigger value than the domain on it's own, where it must rely on strictly the merits of the name. A particularly bad domain name can still be recovered into a profitable one by developing the site. This is would be the equivalent of building a house on an empty spot of land. The house significantly raises the value of the property. Domain names are no different.

Domain Parking

And while you are waiting for someone to buy a lone domain that still has traffic, you can earn money by what is called parking. Essentially parking allows a list of advertisements to be put up when someone goes to the domain. If they click on those ads, you are paid for the click. This sure beats just letting it sit at a "Under construction." sign. Some services allow you to even sell and park at the same time to make it easier.

Domain buying and selling, no matter the method, is generally considered a long term investment, though flipping of domains, though less profitable, is also an option. Waiting, however, for a domain name to gain interest by someone can bring great rewards.

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