Ways To Make Domain Name Investing Pay Off

By Jeff Alderson

Domain name investing is becoming a fairly popular way to make a lot of money on the Internet. It’s relatively simple to get involved in and can pay rather big dividends for a very small investment. Understanding what it is and how it works can open the door for lucrative returns.

Domaining, as it is often called, involves nothing more than buying website domain names and parking them through parking services or selling them to others. The prospect takes a little time to master, but the returns can be worth the effort. The financial returns tend to come in one of two different ways – ad revenue or resale value.

To get started in domaining requires buying website names, having them registered and then parking or reselling them. How much or how little one can make will vary greatly on the amount of natural traffic the domain name tends to pull in or how highly sought after the name happens to be.

There are a few methods to use for figuring out what types of domain names to register and buy. The most common are “type-ins” or “typos.” Typos are names that are similar to existing websites or brand name products. Typo sites receive traffic due to accidental “typos” people make in trying to reach other sites. This type of buying can get a little tricky, especially when trademarked names are being used though. Some domainers don’t feel the typo route is the best way to go for legality issues. Another route to take is to buy actual “type-ins.” These are domain names that are commonly used in web searches. For example, “organicdogfood” or other actual words that might be used in searches. This is considered by many to be more legitimate. Another option is buying formerly used domain names that have traffic or backlinks and simply parking them or reselling them.

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.

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.

The practice of domaining is a fairly simply way to make money on the Internet. It doesn’t take a lot of work to get involved with. Becoming a master of the practice does take some time. Although some forms of the practice are considered unfair and even shady, the overall practice is not and it does work to make a lot of people a fair amount of money.

Author Jeff Alderson is a software developer and online marketer. He is an expert on PPC and SEO tactics. To boost sales, Jeff advises using a keyword tool when conducting any keyword research

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