Making Money From Domain Names
Making Money From Domain Names? a road less traveled when a person first come online trying to find a way to make money, they will be sure to be bombarded with ads about SEO, PPC, or Email marketing but never a word about how you can make money using domain names. Yes, perhaps it is a road less traveled. A much less popular way to make money but surely this also means that the competition is lesser as well. Here’s a famous success story on how an ordinary guy made $164 million dollars by selling off 100,000 domains that he owns.
In 2004 around November, a Chinese American named Yun Ye became a legend almost overnight when he sold off his collection of 100,000 domains to Marchex for a whopping $164 million dollars. That is the kind of wealth that will last you for several lifetimes. It took Yun Ye many years to collect the domains, and he started as early as 1998. It was when PPC started to become famous that these domains really start to pay off. Yun ye was said to be profiting at $19 million dollars a year even before his domains were sold. There’s money to be earned in anywhere as long as we stay diligent and actively trying our best to succeed in it. Here are several ways to make money with Domain names.
Buy Low Sell High ? Domain Flipping.
Perhaps the most basic way to make money from Domain names is to buy good domain names at a low price and sell it off later at a much higher price. Remember the key here that will likely go up in price in the future is there is a demand for it. If you see an upcoming local business that is thriving and does not have a website yet, you can buy a domain name or several variations of it and hold it.
When that business decides to start a website, if they choose to buy the domain name that you now own you can sell it off at a much higher price say… $5,000? Imagine, making $5000 from a $2 domain name. And if you think this is ridiculous then thing again, because this happens every single day and real people out there are making a comfortable living online doing just this.
Ok say you can make money reselling the domains right? But when waiting for the price to go up, what can you do in the meantime to make some cash? One good way to do this is to use Domain parking. Go search Google online and you will see that there are many providers that allow you to park your domain which you earn some cash.
Doing this not only will earn back your investment early, It can often keep you going while adding more into your portfolio. Note that not all domains will be able to produce you with a lot of money from parking, but the best domains that gets searched is great to make you some cash while waiting. Hence always pick only the best domains.
Of course choosing the best domains isn’t always an easy task. You will need to be alert most of the time, and you might need to spend quite some time searching for the right domain before you invest in it. Think of choosing a domain as if you are buying a real estate, the only difference now is that a single domain is most of the time very cheap.
Sniping Expired Domains Or Used Domains.
There’s a lot of value in buying expired domains or used domains. First of all, expired domains are usually an established domain already, and it could be because the owner was too busy at the time and was neglecting the domain and have forgotten about it. Should the previous owner come to you and wish to buy it back you can earn an instant profit just by reselling it back. Also, if the previous owner had some reputation, you could opt to sell it to the previous owners’ competitors where they can redirect the traffic from the said domain and arrive to reach their site instead.
Used domain however, is quite valuable in the realms of SEO (Search Engine Optimization). If you could buy a domain with a high PR (Page Rank) rank already or any PR rank that will fetch you a lot of dollars when you resell it to people looking for a domain that has a PR rank. A high PR ranked site is well perceived to SEO experts, and many would jump at the chance to acquire a good PR Ranked domain name.
This will save them a ton of time trying to get the domains ranked nicely in the search engines later on. These are some of the ways people use to make money from domain names these days. There are other ways not mentioned here but one thing is for certain, there is money in the domain names and the competition is surely less than conventional internet marketing techniques.
You could try out making money using domain names first as a part-time hobby while doing other Internet marketing efforts, and if it pays off, you might even consider doing domain flipping for a full time income while doing just minimal work.