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Buying And Selling Domains?Is It A Long Term Business

Posted by admin | October 25, 2008 .

Recently we have seen a lot of rush at Godaddy website when a new domain name extension (me) was launched. When ever a new extension is launched, people try to register short domains (like internet.me) which can be later sold at premium prices. These people will earn money from such investment or not is still questionable as ICANN (Internet Corporation For Assigning Names And Numbers) is planning to introduce more extensions to decrease the gap between demand and supply of short and common domains.

Monitoring Expired Domains

Nowadays, it is very hard to find simple dictionary word domain names with com and net extensions. Some individuals and small companies spend a lot of time to monitor high valued expiring domains, these domains are deleted after the end of expiration period(a small time period for owners to renew their expired domains). When ever such domains are deleted, domain hunters immediately register them for premium selling.

Buying And Parking Domains

It happens so many times that you try to open a site in your browser, a little typing mistake and you are on another site that contains nothing but some sponsors ads. Domain owners park their domains to target typos of popular sites. You cannot expect much income from parking domains because these cannot be advertised and you cannot build links for them. Parking domains also have high bounce back rate, when visitors realize that they are on a wrong page they immediately click back to go to the original desired site.

Domain Names And Law Suits

Registering domain name of a popular brand or similar to a popular website may cause you in trouble and you may receive a legal notice and ultimately you have to hand over its ownership.

Is It A Long Term Businesses?

Domain trading is a short term business that cannot generate residual income for you. You start by buying domains and then try to resell them at high prices and once these domains are sold,you again start from zero by buying some more domains. Similar is the case with domain parking, you park your domains and then hope that visitor will come and click on your ads.

How To Expand Your Domain Name Business?

Rather than relying on domain trading business, it is much better to start a business that can generate stable revenue for you. If you are only interested in domain name business then you can establish your own brand name in domain name industry by joining the reseller program of any ICANN accredited registrar.

By doing so you can not only register domains at much lower prices but can also provide all those services that your parent registrar is offering(Domain registration, Domain parking ,web hosting) where every thing will be handled by the registrar at the back end and your store will be completely automated . So instead of parking your domain, offer domain parking service to your customers and earn PPC revenue on their parked domains.

Although domain name reselling business is not as simple as it looks because of huge competition in the market and is only recommended for those who are already in domain trading business and want to expand their business to earn a stable long term income.

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