How to Start a Domain Name Portfolio

In real estate, three things determine profit and loss: location, location, location. On the Internet, buying and selling domain names for profit mainly requires imagination, patience and timing. Some domain names can be purchased for as little as the registration fee, depending on trends and demand. Several notable domain names have been sold for millions. For creative entrepreneurs, having a portfolio of valuable domain names can be a very profitable business.

Difficulty: Moderately Easy

Instructions

1. Review some tips on selecting domain names in the Inc magazine online article "Choosing the Perfect Domain Name." Discover business trends and niches by looking at the titles of popular books and websites. Read magazine articles and blogs.

2. Practice creating new domain names using names, trends, search keywords and blog news feeds. Check expired domain names that may be valuable. Look up available expired domain names at any domain registrar. GoDaddy and Internic Whois are two good sites to use.

3. Add popular domain names to your "Web" real estate portfolio. Select your domain registrar, based on your budget. All registrars perform the same service, but some charge much more than others. Choose five to ten new or expired domain names to purchase.

4. Capture the domain variations for existing and new dot com sites that you purchase. Include the domain name's .org, .info, .biz, .net and any other relevant dot domains.

5. Buy the domains for any spelling and synonym variations for your selected domain names. For a parenting domain name like "momtips.com," consider buying mamatips, mommatips and mom-tips too, if they are available.

6. Register for domain auto renewal or have an automatic expiration reminder sent to you, annually. If your domain registration expires, it could be snapped up by someone waiting in the wings for the opportunity.

7. Start marketing. Register to sell or auction your domain names at trusted sites like Sedo. Avoid sites that don't have free registration. Hold your domain names until your marketing efforts or Internet trends and demand make them valuable to buyers looking to secure Web real estate.

Tips & Warnings

• Analyze expired domains to generate domain name ideas too.
• Depending on the trends and your domain name, it could make sense to keep a domain name in your portfolio for a year or more. You may get more offers or a better price, if you are willing to wait out the market.

Resources

• Get tips for selecting domain names at inc.
• Research and register domain names at whois.
• Look up and purchase available domain names at GoDaddy.
• Sell domain names at sedo.