How to Make Money With Domain Trading
Domain trading refers to the selling of a domain name for profit. Many entrepreneurs have discovered a way to turn domain ownership into cash. Buying and maintaining a valuable portfolio of domains is an investment in online real estate, which can net you thousands of dollars at auction. The key is to pick the right name. You don't have to build an actual website on the domain in order to make it profitable; in most instances, the name of the domain itself is what drives the price.
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Instructions
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Visit the ICANN website and become familiar with who they are. The Internet Corporation for Assigned Names and Numbers is the governing body for domain policy and registration. A small ICANN fee is included in every domain purchase.
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Research domain auction sites and study which domain names are for sale. Focus on the asking price of each. Ascertain which names have the highest bids, which is an indicator of their value. Pay attention to the names that aren't receiving bids; such low interest could indicate market saturation.
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Make a list of the market categories that you would like to penetrate: finance, health or sporting goods. Your name should contain words that are commonly searched for within the English language; this contributes to the domain's inherent value. Popular terms will have a stronger appeal to potential buyers.
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Search for available names at a domain registrar. All domain sellers have access to the same inventory so use the one that gives you the cheapest rate. Look for names with a .com extension. Have your credit card ready to facilitate payment if your chosen name is available.
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Decide if you would like to purchase any additional extensions for the .com name that you acquired. Extensions include .net, .org and .info. If you own all the extensions, it prevents pirating of your name by other traders and secures your market domination for that phrase.
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Register with a domain auction site and pick one that gets a lot of traffic. List your domains for sale. Realize that some of your names will be more valuable than others. Monitor interest and adjust your asking price accordingly.
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Look for a trend across various markets and then capitalize on it. If there's a new movie coming out or a spike in dirt bike sales, find a way to incorporate that trend into a catchy domain name. List it immediately, and continue to follow these steps to increase your domain portfolio over time.
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Tips & Warnings
At auction, list multiple extensions of a domain simultaneously; that way, buyers can make you a single offer for the entire set.
Be careful when discussing your intent to register a particular domain name. You don't want the listener to steal your idea.
Always purchase a unique name as soon as you discover it's available. If you wait, it may not be there when you return.
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