Domain Name Investments

Is it really possible to buy a domain name for just a few Dollars or Pounds and then resell it later for hundreds, thousands or even millions?

The media and certain auction sites would have you believe that it is, but for the majority of people, it's just not going to happen, though we know a number of people who have managed to do this and have even done it ourselves.

BUT there is little point in registering a domain name just because nobody else has thought of it yet. Every day, tens of thousands of registered domain names expire and drop out of the system altogether.

Most of these expired names were originally bought in the original dot com frenzy of a few years ago.

People would literally register hundreds or thousands of names, often following some obscure theme, in the hope that some day, somebody would be willing to buy them off them for a profit.

As the typical registration time is two years, these people thought that they would have plenty of time to make some profit.

But then the world woke up to reality. Dot com businesses failed and suddenly, the "new age investors" began to question their flawed logic.

Some people got it right, but how?

The first thing they did was ignore the trend to register new names for the sake of it.

They looked at market sectors that they felt would do well online and registered good quality generic names that they felt a more mature Internet user might type in to their browser in order to find certain products or services.

This was first class thinking, because now the Internet is maturing, that's precisely what the experienced users do - they type into their browsers, the service they are looking for!

Instead of crawling their way through hundreds of pages of search engine noise, they simply take an educated guess at the web site address.

Now, those who had the foresight to recognise how the Internet might develop are reaping the rewards of their efforts - and often don't have to do any work in order to realise some very large profits - without having to sell their domain names.

The same people were also the first to recognise the value that lay in the after-market. They eagerly sought out the high quality, single word dot com names and made offers to their owners - sometimes for several thousand, or several hundred thousand Dollars at a time.

By recognising the natural type-in traffic value of those domain names, they were able to redirect the visitors to exactly what they were looking for, just by joining affiliate programs or forming business alliances with relevant web site owners.

These web site owners either pay the domain name owner for each click or visitor, or they pay a commission for every sale that's made from the traffic.

Instead of simply trying to resell their domain names, they instead look for ways to sell the traffic - and that provides a very worthwhile residual income for doing little or no work.

With the correct logic applied, it is still possible to make money this way - even with newly registered names.

Selling good names is shortsighted and it's likely that by holding on to them and developing them into web sites, you will earn far more in the long term than you would by selling them.

Other areas of this site deal with valuations of domain names, but the real value lies in what the name can deliver for it's owner. Even mediocre names costing $10 can turn into a residual income of several hundred or thousand Dollars per year if developed and treated correctly.

Nurture a domain name and it really can pay dividends.

©Hollywood Internet Ltd - Domain Name Investments