How to Make Money Off Domain Name Investing
Domain name investing, commonly called domain flipping, is the process of buying domain names without websites, speculating that they will eventually rise in value. This type of investing is similar to investing in real estate, but all property purchased is virtual in nature. Professional domain investors work to find keyword-based domain names that are selling for a low price, but that have potential for a high price. They hold them over time, as one holds stock, and then sell them once they have found a buyer willing to pay a higher dollar amount.
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Instructions
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Getting Started as a Domain Name Investor
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Study the market and learn about search engine optimization. Most webmasters that will be buying domain names from you will be interested in domain names that are keyword rich so that they can rank their websites well in the search engines for their desired keywords. A basic knowledge of SEO, website structure, and how search engines rank websites will help you learn how to choose high dollar domain names.
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Choose an accredited domain name registrar. The registrar is the site you will be purchasing domain names from. Rates vary for individual domain names, but a basic .com domain name sells for under $17 per year as of 2011, while a .info or .biz domain name might sell for much less.
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Research your market. Spend some time on Internet message boards, blogs, and Internet marketing websites. Learn about the niches that marketers work in regularly, and the types of keywords that they target. Web masters frequently try to build sites that will be relevant for long periods of time, on "evergreen" topics, such as dog training, acne relief or how to get out of debt.
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Buy a few domain names in the niches that you've chosen. Web masters are primarily interested in keyword rich .com domain names without underscores, although some might be willing to purchase .net or .info domain names as well.
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Park your domain names using the instructions provided by the company you registered them with, and let it age for six months to a year. This step allows you to place ads on the page shown on your empty domain, letting those who land on it know that it is for sale and how to contact you. You may be able to earn a small amount of money while you let the domain age. If you receive an appealing offer during this time, sell your domain.
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Sell your domains at auction when you feel you can get a good price for them. Sites like GoDaddy.com regularly host domain auctions and are fairly easy for beginners to use.
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Tips & Warnings
Domain name investing is a long-term proposition; is generally not a good way to make quick cash.
If you are selling a domain name for a large amount of money, it may be wise to use an escrow service to facilitate the financial process for both parties involved.
References
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