How To Make Money Trading Domains

Domain trading is the buying and selling of domain names and it is a business that has been on for many years. It promises a high yield on investment but can be very risky. You can turn $25 into $450 or more within a short time and you may buy a domain name without ever selling. It is an interesting terrain to navigate. If you want make money with this business, you need to get as much information as possible so that you will be able to succeed.

One of the benefits of this business is that you only need to register or buy a domain name and not necessarily developing it or pulling traffic to it. You don’t even need to put any content. Just own the domain – that’s all. You may be wondering where and how to buy domains. You have two options to choose from and you can use both. The first option is to register through registrars and this is referred to as the primary market. Top registrars include GoDaddy, NameCheap, iPage, 1and1, Dynadot and so on. The price for registration varies from one registrar to another and there may be additional products added by each registrar.

The second option is to buy an already registered name and this is referred to as the secondary market. Examples of secondary markets are Sedo, GoDaddy, Flippa, Afternic, just to mention a few. Pricing at the secondary market is a bit on the high side and this is determined by so many factors like the age, category, number or words, valuation of the names and so many other factors. However, it is important for you to note that a domain is renewable every year and you have to factor this into your plan when making purchase and sale decisions.

Furthermore, choosing the right domain name is very crucial to your success in this business. You don’t just go ahead to buy a name you can think of. It doesn’t work like that. It’s not gambling and you need to be able to identify marketable names. You can visit news sites like TheDomains, Domaining, DomainInvesting and so on, to know the latest trend in the market. It is not easy to predict a name that will sell but if you get familiar with information about the industry, you will be better positioned to make the right decision. Typically, the best names are short, easy to remember, easy to spell, easy to pronounce and so on.

Is Buying Multiple Domains Necessary?

Whether to buy multiple domain names or not to buy is one of the most common questions that most people ask without really knowing how they work. You may end up spending money on, any domains and they may not benefit you in any way.

It is important to note that there are many reasons that can warrant the buying of multiple domains. However, search engine traffic isn’t among them. There are some things you ought to understand before buying those extra names.

Some of the reasons

Brand protection: usually, corporations will use different domain names so as to make sure that their brand is protected in the best way possible. This is something that smaller businesses can also choose to embrace. If you really want a name and don’t want others to have it, you should buy it. If you feel that your brand is worth some protection, then you most certainly need multiple domain names.

Shorter email domain: there are companies with rather long domain names because of a long company name. A shorter name can be really helpful for word of mouth, emails and print.

Word of mouth: this is yet another reason why you may need another domain name. It may be very hard to remember a name, especially if they have dashes and when they are very long. If this is the case, you may find it helpful to get a shorter name that will be more memorable to put in your presentations, the business cards as well as when you want to tell people about it verbally.

Making it easy for the clients: To guarantee that clients find you easily, you may have to purchase multiple domain names. Usually, there are people who will add a.com to your domain name since it is more popular. It therefore becomes important to purchase more names for the sake of your clients.

Buying domains that have already been established: if you are a sharp domain buyer, then you may look for domains that are within the industry you operate in. The established domains come with real value. You can then enjoy all the authority that comes with them, including the traffic, which they may already be getting. Domain evaluation is not an easy feat and you will need to be very knowledgeable to do it in the right way.

The do’s and Don’ts of buying domain names

It doesn’t really matter who you are. There are something’s that you should always be careful with when you are buying domain names. They are:

– Only buy domain names from unique sites

– Do not buy the domain name if you are not in a position to support it

– If it’s boring, it may affect your business negatively and you may not even be able to brand it. Domain names should be memory hooks.

– Premium domains may look really interesting but always remember a domain name doesn’t guarantee the success of your business.