How to Start a Domain Name Investing Business

Domain name investors view the domain names they invest in as Internet real estate. The objective, of course, is to sell the domain name investment for more than was paid for it, and just like regular real estate investing, the domain name asset can also be rented out to generate cash flow.

Instructions

1. Sign up with a service like GoDaddy.com, a domain registrar and hosting company, and register your account in order to buy and sell all your domain names. You will also use this account for buying and selling through the auction as well as renting out your domain names via cash parking.

2. Identify the best domain names to invest in. This is the most important thing you will need to do in your domain investing business to get more money when selling your acquired domain names as well as getting more rent from cash parking a domain name.

3. Locate valuable domain names under the "Find Expired Names" feature of GoDaddy.com. Use expiring domain software such as Expired Domains, which you can download for free, to assist you in locating soon-to-expire domain names.

4. Stick to your budget, and make sure not to overpay when purchasing domain names. The prices you pay for domain names will depend more on which method you choose. If you use the auction method, the price will be different for each domain, and you will see a huge variance in prices, ranging from $1 to $20,000 or more. The second method is to use the Expired Domains software program to buy most domains directly through GoDaddy.com for the market price, which is usually $3 to $14 for each domain. This is the best way to buy domains, as markup is not involved, and you will automatically have equity in your domain.

5. Rent out purchased domain names by using Go Daddy's cash parking feature. Cash parking your domain name is much like buying a house and renting it out for a profit, while your property is gaining value. With cash parking you will get paid every time someone visits your domain name. Each time a visitor clicks on the links that Go Daddy places with your domain name, you are paid a percentage of that click, which ranges from 1 cent per click all the way up to $30 for a click.

6. Sell your domain names to prospective buyers through Go Daddy's auction. Use a buy-it-now price for a brandable or generic domain name, and list a niche domain with a reserve price.

Tips & Warnings

• Watch for misspelled domain names, as they are one of the most profitable ways to make money from buying domain names.

References

• The Domain Game; David Kesmodel; May 2008
• Go Daddy

Resources

• Expired Domains Software