If you follow the investment principle of buying low and selling high, then the best time to build your domain portfolio is now. When the economy improves and online business picks up, you can expect the demand for quality domain names to surge as well.
What is a domain
A domain name is the first thing an online business acquires when starting a website. It is the electronic name you choose for it. Domains are important because these are incorporated into the URL (Uniform Resource Locator), which is the address people use to find a site.
Domaining in a nutshell
You can buy domains online from various sites like Namecheap.com. These come in various suffixes like .com, .net, .org, .me, .info. Only one owner is entitled to use a domain so that the first successful registrant has an exclusive right to use it as he or she pleases. Oftentimes, however, a business may be interested in buying a domain that is already owned or used by someone else. The only way for that business to obtain it is to buy the domain from its existing owner, usually at a price that is much higher than its acquisition cost. This is generally how people make money from domain buying. Now, imagine the profits you can make from reselling hundreds of domains.
Domaining as investment
Profit, whether short term or long term, is the main benefit of domaining. It’s considered a smart way to invest if you think of the following advantages:
Minimal cash outlay
You can buy domains at $8 or $9 a piece. Experts recommend investing in dot coms because these tend to sell well in the resellers market.
Depending on the quality of a domain, you can turn around and sell it immediately for a quick profit to another who may find it relevant to his or her business.
Privacy and convenience
Unlike traditional investments in stocks, real estate and money markets, you can buy and sell domains online from the comfort, privacy and convenience of your home. No need for brokers or tedious documents. A couple of emails to the right buyers are normally sufficient to close deals.
While domaining may be an easy way to make money online, you still need to know the right techniques for buying and selling because not all domains will sell quickly. The more profitable domain flipping also entails a combination of Internet marketing techniques like SEO. By learning how the art of domaining from experts, you can expect to increase your profits while minimizing your losses.