Domain Business Investment

[inova]

Making Money with Domain Names
The domain name business is a big business; in fact, it’s huge. Every week, domain name sales are reported in the tens of thousands of dollars, and often in the hundreds of dollars and more. On May 19, 2006, Diamond.com sold for $7,500,000, and in January 2006, Sex.com sold for $14,000,000. These are not isolated sales, and many other domains have fetched similar prices. They are, however, the tip of rather large iceberg, and if a few people have found massive fortunes through domain names, others use the market as a simple and easy way to supplement their monthly income by thousands of dollars. Others still, have completely transformed their income structure, quit their jobs, and made domain names their primary revenue stream

So what is their secret?

Be knowledgeable and be passionate. Before investing you money in the domain name business (even if it’s an $8 registration fee), you should understand it – and in order to understand it, you should have passion. Understanding the business means being able to sense the best opportunities, buying at the lowest cost and selling at the most profitable price (and this isn’t always the highest price). If you already have a passion and especially if it is a passion for making money, then you are already well on your way to becoming successful in the domain name business.
We all want to make money with the domain names, and I will try to give some information that I have been learning in this few years in this business. First of all we have to dominate our niche. In order to make money you need to first identify a subject that you find attractive. The goal here is not to, as other people say, have an army of domains and websites; the goal is to have dominating websites, and the best domains. However if you focus on only a couple of niches, you will increase your potential to make money

The Second secret in domain business is maximizing your domain’s value. When you register a domain name, it is important to register a domain name which has value in itself. There are two values – a resale value and a development value. These two values are often different , so a domain may be very profitable when resold, and not very profitable when developed (or vice versa)
There are two principal ways to make money with domains; domain resale and domain development. The first generally requires less effort than the latter, but depends on the quality of the domain. Domain resale is the practice of purchasing a domain (either by registering it or buying it from another domainer) for the purpose of selling it later at a higher price. Domain development is purchasing a domain and turning it into a monthly revenue mill.
Hopefully we all could learn from this new opportunities in online business.

[business]

Wow thanks for sharing. this is really good references for people who want to jump into domain business. I already know a lot about domain business for a long time. however, i never tried.

[maclinda]

Interesting concept, Inova.

Do you have any sources to read further? We have bought a few domains, thinking we would build a product around the name, but haven't actually done too much with them.

One thing we did do is put some of them at a parking site where we get the advertising money from google ads on the webpages. Formerly, they were parked by our hosting site, who kept any revenue generated. I figured, hey, it's my site, it should be my money!