I'd only been peripherally aware of the idea of making money buying domain names before coming to DP, and would like to find out more about the process. My understanding right now is that you register a domain name you think is good, create a site on it, do basic SEO to build up traffic, and then sell it at a profit. Or possibly just keep the domain name until someone else wants it and sell it at a profit? You can see I'm fuzzy on the details, and don't understand why you wouldn't keep a site that was generating profits, so if anyone has any links that would give me a better understanding of the business side of it all, I'd appreciate it. Thanks, Jay
Well, it depends really. Some people may sell so as to monetize the site and to fast track their earnings, typically you see websites being sold 6 to 8x their monthly profits. Some people may be just in the business of buying and selling websites and not really holding them for too long. There are also those who knows their limits and cannot bring the site to the next level. Some are just bored with it. However, on the flip side, it is possible that some may be hiding certain important information such as the cost involved in generating the income, most people don't state the monthly investment so it is possible they spend $1,000 a month to generate an income of $200. They may then just ignore the spending and sell the site for $1600. Some may lie about the income. Others may know that the income level is not sustainable and want to cash out before they bleed. It is really different to know. So I guess when you look to purchase a site, you need to do your own due diligence and then determine if the cost can be recoup in a reasonable point of time. Past income is no indication of future earnings.
You are jumping into the deep side of the pool. I hope you are a good swimmer. A few years ago, it was fairly easy to monetize a site and make good money selling it in a year. IMHO, there is much more competition today and it is much harder to sell a site for a good price unless you can show a good profit stream. A lot of work goes into building a successful site. Make sure that you understand the investment in time and money before you become disappointed. People who buy and sell domain names are called domainers. Do a search for that word and you will find lots of articles about that industry.
Picture me more as someone sitting on the bank splashing his feet in the water. Thanks for the tip about the term domainers! That did result in a lot of useful links for research. Jay
Hi Jay, I have to agree with the above post regarding it is always different. I personally have been involved with the web for almost 10 years total, but I just started "domaining" less than a year ago. And you, might be getting into this and not know alot, but yet you could have better overall sales even though I might have more overall experience. Regardless, nobody here has mentioned one of the most beneficial sites for learning (besides here of course) - check out dnjournal.com for news and current info on the domain industry. Best of luck to you!
Thanks for the link to dnjournal.com, looks like some interesting reading there. I don't have any great expectations about being able to make money with domains, but do want to learn more about how it all works. I've been involved in the web as a programmer since the early 90s, and have successfully missed every big business opportunity that came along , so I figured I'd start learning about what was going on now in the hopes of doing a little catching up. Jay
Hi jay i think the guys gave u a lot of information. dnjournal.com is a great source but before you go there I would recommend that you check http://www.namenewbie.com . it has a detailed information on domaining and it would be a great place to start learning the basics.
Personally I look at the domain business as being just that, the domain business. The moment you start to develop sites, you're out of the domain business and into the website business. Pure domainers buy domains that have pre-existing traffic and/or are strong terms that can stand on their own. They don't bother to develop sites on the domains.
Thanks for the link to namenewbie.com. That looks like it has a lot of great intro material. I also found, though dnjournal.com's links, www.domainstate.com which also looks like it has some great intro material. If I'm understanding what I've been reading so far, making money without developing the site is basically trying to predict what names will be valuable to someone before they actually become valuable. The low cost of name registration lets you hold onto domains for the time it takes for someone to want them. Very interesting stuff! Thanks for all the info and links. Jay
domainstate.com is great but not as big as dnforum.com if u want a bigger forum then dnforum is the place to be. The only thing is membership is paid. u need to pay to be a member. if u need an info regarding domain business feel free to PM me any time.
domainstate.com is totally dead, hardly any activity there. Try out namepros.com(free) or dnforum.com(paid).
That's one of many models of domaining, which usually suits part timers and hobbyists. As with any investment, it depends on your objectives, but broadly speaking, there are 2 types of domainers- one's which try to make money reselling/trading domains and those which invest in domains with existing traffic and then monetize using PPC, affiliates etc. Its good to find a niche that suits your goals.