It is not unusual to hear of people becoming millionaires and even billionaires by investing in real estate, but it is unusual if I will to say, “the next wave of wealth comes from the virtual real estates on the internet, known as DOMAINS.”
- This is how domain name looks like…. http://internettoolboxes.com for example
What is Domaining?
Domaining is the buying and selling of virtual real estate (internet domain names) for a profit.
So what exactly is domain? Domain is about the URL needed by every single website in the world. Everyone needs a domain before they can build their own hosted website. Think about this domain as a piece of land in cyberspace, you need to own it before you can build your building on it. Thus domains in other words are the real estate of the internet, and at the rate that almost a hundred thousand websites are sprouting every 24 hours, domaining is making many ordinary individuals capital investment – simply say, demands are going to outstrip supplies….
Rick Schwartz, the self-appointed “domain king” and full-time trader of internet real estate, says he is shocked more people haven’t tapped into the rivers of gold flowing through the domain name trading business. It is believe that buy-sell domains is the easiest instant wealth strategy that requires little or no technical skills at all, and is very easy to start for newbies.
What sort of Domaining TECHNICAL skills do I need to acquire?
The only relatively ‘technical’ thingy that you really need to know is how to go to a domain registrar website, like namecheap or godaddy, select the desired domain name… of course you would need to pay a small amount for it. A domain registrar is an organisation that manages internet domain names. Any person or company that wants a presence on the internet must register a unique web address name with a domain registrar.
Here are some examples of selling price that domain names were sold in the past:
Insure.com – sold to QuinStreet for USD16 million in 2009
Diamond.com – sold to Ice.com for USD7.5 million in 2006
Toys.com – sold to Toys’RUs for USD5.1 million in 2009
Although most of the domain sales is unlikely to rake in such an amount as those above but it still gives many people a significant income in the internet industry that is growing exponentially at an astounding pace.
What to do next in Domaining in order to earn money?
There are lots of method to work things out in domaining, but I would only recommend the following guide as a general rule of thumb:
1. Rate of Return
A good guide is 5% of your purchase price – if you have bought the domain at USD10, then selling it at USD10.50 is acceptable but provided you do not have to pay any of those transaction costs.
2. Predictive Domaining
This is about spotting domain names that may be valuable in the near future. Try using your existing specialised knowledge to work out some predictives – meaning if you are an engineer that works in the manufacturing sector, you would be more abled to predict the various future industry trends pertaining to plant, machinery and equipments…..
You an also look indepth into demographic trends – what are the areas for potential growth? WHo has disposable income? What are their needs and what will they be in 5 to 10 years time?
After having work out those predictives… you an start off by buying domain names before that new thecnology or trennd becomes well-know and popular!
3. Consistently track ultra profitable KEYWORDS
Tracking for profitable keywords is a domaining journey as you work on buying or acquiring profitable domain names. What you can do here is to check out those sponsored links that appears on Google Search – high chances that these keywords are ultra profitable, otherwise advertisers would not be paying so much to Google to have them advertised!
Once you have checked out the keywords and make sense out of them, use you findings when purchasing domain names and you will have a list of domain names with profitable keywords.
4. Stay Generic, not those linked with trademark
Stick to generic domain names, as they are rarely trademarked and easier to sell. In Feb 2009, the generic domain name toys.com was sold recently to Toys R Us for a whooping USD5.1 million! Imagine if you have bought it many years ago and then put it up for sale! Here are some of the examples of generic domain name and how the price that they were sold:
freemarket.com – sold for USD93,000
distancelearning.net – sold for USD30,000
websitedesign.com.au – sold for USD19,360
carpooling.it – sold for USD19,200
securitycamerasystems.com – sold for USD12,000
Before I forget, getting the right domain names can be hard work as those domain names that you wished for would probably already been taken, but keep trying…. USE YOUR IMAGINATION AND REMEMBER TO STAY GENERIC.
5. Look for different version and extensions
Look for other version if the domain names you have selected were already taken up – if http://internettoolbox.com is already taken, then try http://internettoolboxes.com and that was what I did!
And if all the .com for your desired keywords is already taken, go for the .org, .net, .info and so on.
6. Go for aged domain names
Aged domain or expired domain names are those domains that have been previously registered and for whatever reason have not been renewed. Aged domain simply because search engine tend to trust old domains more, and allocate a higher weightage to them, as they would have at least one year of history. Some may even hold a Google pagerank.
They are lots of way for you to do research in this area if your targeted keywords had already been taken up and a good place to go to is check out WHOIS. If the registrant’s particular are listed, you can contact them and offer to buy….. but it is important that the aged domain is not transferred out to a different registrar – there are high possibilities of that domain losing its age advantage after the transfer.
7. Prepare to hold to good domain names for several years!
You buy a piece of property, you may have to hold on to it for a couple of years, and that’s what expected of you when you buy into a domain. Remember you may have to hold on to it for a couple of years before you can actually sell it out. Thus, remind yourself that a couple of years mean you would have to spend money renewing the domain name. No worry though, work towards selling it at a 5% net profit of the total amount that you have spent including factoring those so-called interest…. don’t ask me to illustrate the details to you.
Otherwise sell it with a 5% return within the first year of purchase of that domain name. I normally don’t do this – I would use that domain name and spend my free time developing a site to that domain name, build up a pagerank and incorporate good and quality keywords before I actually sell it… THINK ABOUT THIS LAST PIECE of advise, you should be okay.
Before I take off from here, do remember to read my future writeup connected to making money from DOMAINING… follow me by signing into my Opt-in page on the right-hand side widget.