Various ways to make money with domain names by David Underhill aka
Barefoottech
Copyright 2006 by BareFootTech
As more people and companies than ever are investing in domain names, it has
become evident that not all of these names will realise their full income
earning potential. As a Domain reseller
and investor with a reasonable sized portfolio ,I have often been asked the
best way to make money from these investment domains. The following are the
most common ways to create an income stream or maximize resale value.
-
Park the name with a parking service
These places pay a percentage of the advertising revenue derived from ads
placed on a page displayed when someone visits your domain. Also most of these
parking services also offer a sales listing service to enable easy resale
marketing of your domain.
-
Make your own park page
Similar to the above ,only you create your own small Website with ads and get
100% of the revenue. This however will not be as profitable because the parking
services get a much greater traffic flow.
-
Develop a small, but content rich minisite
These small minisites are usually filled
with articles and contextual ads from Adsense. Also often called
AdsenseSites
-
Develop a full featured web-site
Selling services or products and also have some ads and paid links.This can be
either selling your own products or as an affiliate for an existing online
website.
Factors that increase value
At any of the above stages of development and Value adding,you can make money
by reselling the Domain/Site for an increased value above the purchase price.
The following is some of the variables determining a fair resale price.
-
Keywords & brandability of the name
i.e. Become-rich.biz is Keyword rich and
is valued higher than CrappyNames.com
-
Amount of Visitor Traffic
Simple equation More visitors = More Income = Greater Value
-
Return from site
(Income for Ads,Sales or Paid Links) . Higher Income earned ,Higher value for
the site
-
Current Demand for similiar names
If a particular type of name is hot property ,all the similar names increase in
value because of the demand.
-
Current Search Engine Ranking
If the Name is Not listed by the major search engines or is on page 346 than
value is low, conversely if it is listed on the first page of the listings than
value will be higher.
-
Number of Sites linking to your site
Related to Traffic and S.E.Ranking , More links = more traffic + higher
rankings
-
How keen is the buyer for name
Buyer may want the name for a specific purpose and will pay a premium to ensure
they get it.
Ways to Lose money on Domains
-
Register a trademarked name
like "P*yP*lFees.com" because of the Legal hassles. Most High profile companies
can afford an expensive legal battle ,can you?
-
Pay too much for Domain Name
Just because ReallyGreat.com sold for $Big-bucks , doesn't mean paying
$bigBucks for any old name will mean reselling it for an even higher price.
-
Get scammed by Email and other types of fraud
Domain investors attract more than their fair share of Scammers A common one is
an email claiming to be someone wishing to buy your name ,all you have to do is
use their preferred Appraisal service to confirm the offered price. It is just
a ruse to get you to pay an inflated price for this appraisal.
About the Author
David J Underhill aka BareFootTech is
an Australian based domain name reseller
and MiniSite developer. He has a
minisite network covering a gamut of topics from
Lingerie to car bits
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