Domain business is indeed big money. To give you a taste of it, there was this guy who bought pizza.com for 2 million USD. Whooa..that’s quite a lot of money isn’t it?
So how can you make money buying and selling domain?
Domain business is like real estate business. While a real estate broker buys prime land and keeps it with him for years together, he’s actually growing his money. A growth is guaranteed, and there are no short falls. Similarly in domain business, the clever guys is the one who picks up “value domains”. Let’s discuss this further.
Investment Required
– Time and effort
You have to be really clever and find out what’s a premium domain. Domains like pizza.com and three-four letter domains are almost unavailable now or are on high bids. So it takes lot of time and effort to find out the best domain, that you think is “sell able”. This is as complex as finding the prime property in real estate. Finding out a good domain requires you to hang around with the domain seller community and find out what’s the hottest domains there. Like for instance poker related domain names are much in demand and is big money. So it makes sense to book one today relevant to the poker keywords. Though you can guarantee that a domain name is completely sellable, it requires much calculation to find out if it’s acceptable.
– Patience
The guy who owned pizza.com registered it in 1994, and kept it with him until 2007/8 when he sold it for USD 2 million. So had he lost hope all those years, he wouldn’t have made so much money. So patience s a good virtue. Once you are sure that you have a great domain, keep it with you and watch the demand rise. Some people also make it a point to let people know of the domain and create demand. Though it can happen sometimes, it’s not necessary if it’s a great domain. But yes, keeping it with you for some time is sure good way to increase the price.
– Ensuring visibility
Once you have a great domain, ensure that you make it visible to the potential buyers. For example if you have a poker domain you can hang around at poker related websites and forums and make it known to buyers. This can create some hype over the domain too. Hanging around forums and discussion boards along with commenting on blogs and using the social media is a great way to increase the prize and demand for the domain.
Tools required
For great domain sell outs, you have to use the tools that are popular. Some are forums like Digitalpoint, and Sitepoint where lot of buyers and sellers hangout. Also there are marketplaces at DNScoop.com where people hangout who are potential buyers.
Returns
Big money. If you have great domains that are much in demand or brandable, then there’s quite a lot that you can earn.
Risks
Well, if you pick up wrong domain names, then it’s a waste of money. Don’t pick up reseller domains that have been banned on google or have been doing something shady. It’s a risk buying them and keeping them with you.
Tips when selling and buying domains (We’ll see that in the next article)
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