Wouldn’t it be great to sell something that people want but is intangible? That is fundamentally what you are doing if you sell a domain name – you’re selling a piece of cyberspace ‘real estate’.
In spite of the fact that domain names have no physical form, you can make a tremendous amount of money if you resell them properly. Reselling domain names has come to be known as operating in the domain aftermarket. (You can visit my website for good available domain names.)
One of the best things about reselling domain names is the fact that you’re able to register any unused name you want – it doesn’t need to be related to your business and you do not even have to use it.
Provided you’re the first one to think of it and you register the domain name properly, it’s yours. If the domain aftermarket sounds like something you may want to become involved in, consider the following tips.
To start with, you will want a name that’s natural (some people call this ‘organic’. Examples of natural domain names include ‘childcare.com’ for information about childcare, ‘movies.com’ for information on movies, and so on. A brand name is the next consideration, and it's an important one.
For instance, if you were actually able to register a name like ‘Dell.com’ or ‘Hershey.com’, you’d make a pile of money selling the name to Dell or Hershey respectively.
Naturally, most natural names are already registered. If, however, you are able to find a natural domain name that hasn’t been registered – perhaps the company is a startup that has not yet developed an online presence – you might be able to snag it for yourself, for future resale purposes. Another consideration is a domain name’s future potential.
It’s like the old saying about what makes real estate valuable: ‘location, location, location’. If you think of a domain name which has great future potential, you can register it and then sit back and wait for it to become popular.
Yearly domain name renewals are quite inexpensive and a small investment can eventually mean a tremendous payoff. Just how tremendous can it be? Well, in 2007 porn.com sold for $9.5 million; in 1999 business.com sold for $7.5 million; and in 2000 AsSeenOnTV.com sold for more than $5 million!
An example of potential for the future involves names relating to ‘green’ technologies. Between President Obama’s promise to fund ‘green’ research and gas costs continuing to go up, these technologies have risen to the top of our awareness.
Even if they are not very valuable now (and they probably are), domain names like biodiesel.com and solarpower.com could be worth a lot of money in the future.
If you have not already noticed, simplicity is one of the main elements of all these domain names.
It’s easy to remember and type in a name like movies.com; this is called direct navigation (or type-in traffic) and it’s responsible for a large percentage of a site’s traffic.
These names are also quite generic. Although utilizing a brand name is effective, this strategy has its limitations – most brand names are already in use and they only appeal to a limited number of people.
Those who are interested in adult forms of entertainment won’t be typing in a name like Disney.com. However, a generic name such as movies.com will draw a tremendous amount of traffic.
By using these tips, you might be able to identify some domain names that offer money-making potential when they are resold. Selling cyberspace ‘real estate’ can be a profitable venture.
Ps : And one thing to be noted is that thihs also involves high amount of risk, as a worng names selection will literally lead no sale and can attract losses.