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How to Profit with Domain Name Speculation


Domain Name speculation has become big business. According to recent study, the average domain name bought and sold by domain name speculators realized a 377% profit. In addition, the average domain name was sold in 12.5 months.

Domain name speculation involves finding domain names that appear valuable, and waiting with the domain in hopes that someone will want to purchase it in the future. With a great domain name like business.com, this can yield huge returns. Business.com was sold for over $7 million!

When domain name speculators buy a domain name, they generally put up a page indicating that the domain is for sale. This becomes a sort of free advertising, whereby someone interested in that domain name will naturally check out the site to see if it is a competitor, or if the domain can be purchased.

But selling the domain is not the only way domain name speculators make money. In addition to advertising that the page is for sale, most domain speculators park their domains with a domain parking service. These services store a simple website for free, and place content sensitive advertising on the parking pages. They share advertising revenue with the owner of the domain. In this way, domain name speculators get free website hosting for their domains, along with occasional advertising revenue.

There are important considerations that must be taken into account before embarking on a domain name speculation career. While it is always advisable to purchase any really high quality domain name available, actually making a stable income from domain name speculation can require significant resources. It will cost a considerable amount to purchase the domain names necessary to make a stable income, and it is certainly no get-rich-quick opportunity.

As a domain name speculator, you should carefully analyze the domain name registrars and communicate with them about bulk purchasing opportunities. A domain name speculator will be buying many - perhaps even hundreds - of domain names daily, and should therefore find the best discounts on domain names. Many registrars will allow for domain names to be purchased in bulk at substantial discounts. Taking advantage of these opportunities will likely be the difference between success and failure at this type of enterprise.

Deciding which domain names to purchase can be challenging. It is very difficult to find high quality .com names. But don't rule out country-specific extensions. As countries get their own extensions, a new world of high quality available domain names is opened up to speculators. New top level domains are being created all the time, and most recently a .jobs domain name was created. A name like computer.jobs could prove very valuable in the long term.

While a lot has been mentioned of purchasing names like Mcdonalads.com, this practice is not particularly productive. Trademark laws allow corporations with trademarked names to take domain names that violate their trademarks. So rather than getting a big paycheck for registering a company's trademarked name, you're likely to be served with a lawsuit demanding you forfeit the name to them.

Domain name speculation should be viewed for what it is: an investment opportunity. Like all investments, the returns will be predicated on the wisdom and decision making skills of the investor.

Rex Ryan maitains the website:

http://www.domainnamesnews.info


MORE RESOURCES:

Domain Names - Google News

What's in a name? The value of a domain - Easier (press release)


What's in a name? The value of a domain
Easier (press release)
Thomas Darré Medard Frederiksen, COO at One.com discusses the value of a domain and offers some tips on selecting the best domain name for your business. In the internet age, many customers' first interaction with your business will be online.

Group looks for help in evaluating new domain names - The Hill (blog)


TheHostingNews.com

Group looks for help in evaluating new domain names
The Hill (blog)
By Brendan Sasso - 02/08/12 11:12 AM ET The Internet Corporation for Assigned Names and Numbers (ICANN) asked for volunteers on Tuesday to help evaluate whether applicants for new Web domain endings should qualify for a reduced application fee.
ICANN Seeks Volunteers for TLD EvaluationsTheHostingNews.com (press release)
Defending trademarks on the internet: new generic top-level domains present ...Lexology (registration)

all 4 news articles »

DealDash buys defunct Swoopo.com domain name (and 22 other end user sales) - Domain Name Wire


DealDash buys defunct Swoopo.com domain name (and 22 other end user sales)
Domain Name Wire
Register your domain names with Searchen Networks Inc., Check domain name availability. Search for domain names. Domain Name Wire is the Domain Name Industry's News Source. Remember Swoopo.com, the auction site where you had to pay for each bid?

and more »

University of Hawaii urges state lawmakers to deter fraudulent use of domain names - The Republic


University of Hawaii urges state lawmakers to deter fraudulent use of domain names
The Republic
She explains that UH has been victimized by unknown attackers who have been maliciously using the domain name to misrepresent the state institution. Greenwood's written testimony asks the committee to consider amending the bill to include fraudulent ...

and more »

UC Berkeley spends $1300 to purchase x-rated domain names - Daily Californian


UC Berkeley spends $1300 to purchase x-rated domain names
Daily Californian
By Chloe Hunt UC Berkeley may be known for its academics, athletics and the occasional protest, but the campus administration has paid about $1300 thus far to stop pornographic websites from buying .xxx domain names associated with the campus.

Hey NAF, this is a classic example of reverse domain hijacking - Domain Name Wire


Hey NAF, this is a classic example of reverse domain hijacking
Domain Name Wire
Register your domain names with Searchen Networks Inc., Check domain name availability. Search for domain names. Domain Name Wire is the Domain Name Industry's News Source. Respondent wins but should have gotten more than that.

and more »

Did You Sell Any Go Daddy Premium Domain Names During the Super Bowl? - Elliot's Blog (blog)


Opposing Views

Did You Sell Any Go Daddy Premium Domain Names During the Super Bowl?
Elliot's Blog (blog)
Domain Name News reported that Go Daddy planned to have their premium listings appear during the Super Bowl. This was big news because GoDaddy spent upwards of $10 million producing and airing its two Super Bowl commercials, and as a result, ...
Godaddy Set Sales Record For Super Bowl SundayTheDomains.com
2012 Super Bowl Commercials: GoDaddy, Danica Patrick Sell Domain NamesOpposing Views
Innovative Super Bowl 1st Caps a Record Go Daddy PerformanceEON: Enhanced Online News (press release)
Domain Name News
all 54 news articles »

6 questions about DOMAINfest answered - Domain Name Wire


6 questions about DOMAINfest answered
Domain Name Wire
Register your domain names with Searchen Networks Inc., Check domain name availability. Search for domain names. Domain Name Wire is the Domain Name Industry's News Source. A look back at last week's DOMAINfest conference. Before heading to DOMAINfest ...

and more »

Letters: Internet domain names can confuse consumers - USA TODAY


USA TODAY

Letters: Internet domain names can confuse consumers
USA TODAY
I agree with USA TODAY's editorial on the problems with the expansion of the Internet domain name suffixes by the Internet Corporation for Assigned Names and Numbers ("Editorial: ICANN expanding websites to 1000 dot-anythings").
ICANN Wants YouNational Journal
Corporation Service Company Advises Organizations That New Generic Top-Level ...MarketWatch (press release)
Volunteers Sought to Help Evaluate Generic Top-Level Domain Applicants Seeking ...San Francisco Chronicle (press release)
BtoB Magazine -Lexology (registration)
all 18 news articles »

U. buys .xxx domain names in preventative move - The Brown Daily Herald


U. buys .xxx domain names in preventative move
The Brown Daily Herald
By Meia Geddes The University bought two domain names to avoid association with adult content, but brownuniversity.xxx had already been purchased. Students surfing the Internet for adult content will not find it on brownu.xxx or brownuniv.xxx — the ...

and more »

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