Buying and selling domain names online has become a very profitable business. With the internet more than doubling its size in the past decade it is easy to see how much money there really is in domain names. Every new web site has a name, or needs a name in order to exist. Domain names are absolutely mandatory for web sites, so there is a massive market that is based on simple supply and demand.
As the internet continues to expand it is very unlikely that the supply will outweigh the demand. In fact, it is almost a statistical impossibility, considering the amount of domain names left and the amount of people that are trying to buy domains. If you’re wondering why this incredibly profitable business opportunity has been kept from you for so long, keep reading to discover some of the secrets of buying and selling domain names.
Finding the Domain Name
The first step in buying and selling domain names is finding the name. You need to find a name that is almost guaranteed to be sold again in the near future. While this may seem like a difficult task, there are endless opportunities created by a sea of individual markets and industries. All you have to do is find a keyword or interesting name that would be valuable to a buyer.
Most domain sellers wont tell you that they use auction sites and certain tools to find out what kind of names are hot at the moment. Simply visit your favorite site auction site and checkout some of the current auctions. Look for the auctions that are currently being bid on the most. If you can emulate that success by picking a similar name then you’ll be able to consistently profit from buying and selling domain names.
You can also use the latest trends to your advantage by purchasing domain names that are relevant to new hot topics that are being frequently searched for in search engines. To find this information you can use a tool like Google Trends. If the topic is hot and you find a matching domain name then you can be sure that someone will bid on the name and give you more than what you paid for it.
Selling the Domain Name vs. Parking It
Once you have acquired a good domain name you can start making small amounts of money from it right away, or you can sell it for a more hefty and lump sum profit. A lot of people don’t know what domain parking is. When you park a domain for monetary purposes you are actually leasing that domain name to an advertising company that will pay you to place ads on your pages. Obviously there is a potential for an extra revenue stream, however it would take hundreds of parked domains, which could be a hassle to manage.
On the other hand, selling the domain will give you a larger amount of money, sometimes entering into the range of thousands of dollars. There are a variety of ways to sell your domain.