Hi I am fairly new to domain name buying and selling. I may sound dumb but where you see a value for a domain name and it says it has earnt $200 a month can I ask where is the money generated from? They sell it for say $2000 which is 10 months worth of revenue. Where does this revenue come from? And more importantly where exactly or what company would pay you the revenue. I know I sound dumb but really need this explaining to me. Thank you so much.
Undeveloped domain names generate revenue from parking. There are dozens of parking programs that might suit your needs - Sedo, Namedrive, Fabulous, Bodis, etc.
Once you reg or purchase a domain, you should immediately park the name to gain some revenue, if that name has traffic. Since you're an absolute beginner, don't rush to buy any names yet without reading all you can on domaining & what makes a domain valuable otherwise you're gonna waste a ton of money.
I think that all revenue ment is revenue from advertising placed on the web site of this domain. To be honest I have no idea how to check that.
fabulous is the best parking service out there. I find it suspicious that someone would sell a domain that makes $200 monthly for just $2000 though.