Others, however, assure that the next wave of millionaire businesses in this line is approaching with the arrival of the new first-level domain extensions.
And although many domains are no longer selling for millions of dollars as happened in the early 2000s with the .com fever, there is still a lot that can be done if you want to exploit this practice and earn a good income.
What is a domain?
For those who are less familiar with this term, we will say that a domain on the Internet as described by Wikipedia is a name system (DNS) that allows translating Internet addresses (IP) into memorizable and easy-to-find terms.
The domains are then used to access web pages and are regularly acquired for personal or corporate use during annual periods, in such a way that they must be renewed or, failing that, released so that someone else can use them.
What is the business of buying and selling domains?
Well, the business was actually born with the arrival of the Internet and consists of searching and acquiring domains for resale (.com, .net, .org, etc.). Of course, for a domain to be attractive and marketable, it must be especially useful for an Internet industry.
To give you an idea, a standard domain regularly has an average price of about $ 15, which is actually a very low cost compared to the potential of this business to multiply your investment.
If we undertake the task of conducting an exhaustive search, we could find domains that, oriented to a specific quite profitable concept, can be resold for $ 100, $ 500, $ 1000 dollars or more depending on the value that the interested party gives in using said domain.
Of course, although it sounds very simple to do, there are some aspects that you should consider to get involved in this interesting business successfully and make good profit.
How to turn the sale of domains into a profitable business
The first thing you have to know is that many of the most attractive domains have probably already been purchased, which should not frustrate us since there will always be at some point the possibility of getting a good domain that is resaleable. Just imagine how many millions of pages there are on the net.
Especially those that are composed of a word are usually highly valued and if they can be acquired they are no longer considered standard domains and their price can therefore be several hundred or thousands of dollars that could still be a good investment option if they are makes a well-calculated sales projection.
These are some practical tips and things you should know to make the most of your investment if you want venture into the business of buying and selling domains:
- The most attractive domains are .com and secondly .net
- The most expensive domains are usually short or single word ones
- Generic domains are also usually very attractive
- The most sought-after domains are usually those related to fashion events, famous people or relevant (current) news
How to proceed to buy profitable domains
Perform patient searches to find potential domains that you can acquire. It may take hours to find a good domain, but this dedication will surely pay off.
Offer automatically for the domains of interest. There are sites like Snapnames.com and Pool.com that allow you to participate in domain auctions once they are released. This is especially useful since you cannot be connected all the time but you can leave an offer to be bid at the moment that a certain domain of your interest is released.
Register the domain of your interest. If you find a domain that you like and consider that it has potential, register it immediately to protect it and become the owner, with which you can negotiate it at any time. Do not forget that the domains will have to be renewed in any case within a year.
There are many reliable companies to buy domains, some of my favorites are GoDaddy.com and NameCheap.com You can also explore Sedo.com which is the main platform for buying and selling domains.
A good rule of thumb for knowing which domains to search is to imagine about people, television programs, or local or global social events that could become relevant and become a topic of interest that therefore requires a domain of its own to spread.
It is important to consider that in the case of individuals, companies or brands, it may be risky to reserve certain domains due to the protection of intellectual property. This means that at some point they could sue their legal rights over it, thus becoming a problem for you instead of a business. Yet many take the risk of negotiating and attempting the sale at any cost.
Finally, once you have an interesting domain, you should contact companies or people who could potentially be interested in acquiring it to negotiate a purchase price. You will be surprised how interesting domain negotiation can be so for this and much more buying and selling domains is still a profitable business.
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