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Making Money With Domain Name
Investing
By:
Jeff Alderson
The practice of domain name investing is becoming a popular choice for those who
want to make money on the Internet. This investment practice is fairly easy to
get involved with and can pay off very well for a small investment. It is
important to understand how it works to be able to open the door for big
returns.
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.
Starting out in domaining involves buying website names and having them
registered and parked or reselling them to other investors. How much of a return
an investor will make will depend on the traffic a particular domain name pulls
in or how sought after the name tends to be by others.
There are a few common methods that people use to determine the kinds of domain
names to register and by. The most frequently used are "type-ins" or "typos."
Typos are nothing more than names that are similar to websites that already draw
traffic or brand name products themselves. Typos get their traffic due to the
accidental "typos" people make in typing out other website names. This kind of
buying does get a little hairy, especially if trademarked names are involved.
Some investors steer clear of the typo method due to legality issues. The other
method involves buying "type-ins." This type of domain name reflects common web
searches. For example, "babyfoodchoices" or other words people actually use in
searches. This practice is considered by many to be more legitimate. Another
route involves buying site names that were formerly used that have existing
traffic and backlinks. This method involves buying the expired names, parking
them or reselling them to others.
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.
Determining the real value of domain names can be the hardest part of this type
of business. It generally comes down to what the buyer thinks the name is worth.
Buyers can sometimes request revenue and traffic statements.
After domains have been chosen and purchased, there are several ways to actually
make money off them without doing too much work. Parking service sites are the
most common way to achieve this. These services let investors "park" their sites
with little or no content. This means the sites will pop up as a result of an
Internet search. Although content doesn't come along with a parking package, a
landing page can have text ads. The owner of the domain will get paid for the
returns on the ads. Another option for making money involves nothing more than
selling the names to other investors for further development or for them to park
themselves.
Parking services like Sedo and Parked.com have their own rules domainers must
follow. Although these services do allow text ads on parked pages, they tend to
frown on backlink generation. They expect that traffic that comes in will be of
natural, organic means. Simply put, they want accidental hits, normal Internet
searches or existing backlinks to drive traffic. If site owners do too much to
generate traffic, their pages can be taken down.
Domaining can be a relatively easy way to make money using the Internet. It
doesn't take much effort to get into. Mastering the ways to capitalize on
earnings might take some time though. While some forms of it are not considered
fair or legitimate, such as squatting on trademarked names, the overall practice
is working for many people.
Article Source: http://www.articlestoreprint.com
About the author: Jeff Alderson is a software developer and online marketer. He
is an expert on PPC and SEO strategies. To boost sales, Jeff suggests using a
keyword tool when
conducting any keyword
research
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