Ways of making money with domains

Written on December 6, 2007 – 9:43 am | by admin |

Today I will be sharing on the different ways of making money with domains.

Just a brief introduction, I started off with domaining as my internet career and spent more than 6 hours a day over a span of 40+ days researching and finding out the current market trends of domains. Over the course of the next few days I will be sharing tips and updates of latest trends of the domain industry. My knowledge has mainly came from namepros.com (domainer’s forum) as well as articles all over the web.

A little teaser, the word domainer isn’t actually a dictionary word but most domain sellers use the word domainer to describe their career as it sounds cool ;)

So how can you make money with domains? Here are 3 main ways:

  • Buying domains for $8/year (reg fee) and reselling them to other domainers
  • Buying domains as investments and selling them off only to end-users
  • Earn through domain parking

Now I will explain in detail these 3 ways and/or strategies.

The first method is commonly called ‘flipping’. Domain resellers buy domains from registrars such as namecheap.com and godaddy.com for $8 usd/year and then resell them to other domainers in domain forums. This method requires time and energy as it involves buying and selling domains off at low prices daily but it is a quick and fast way to increase your capital for bigger investments.

The second method moves into the arena of long-term investments. Domainer registers a domain and keep renewing the domain yearly in hope that an end-user buyer (someone who has plans to develop the domain) would come by one day to purchase it at a high price which is often decided by how much a buyer is willing to pay for the name. The seller can then decide to either sell at the offer stated by the buyer or in most cases fight for a higher sale price. This method is what I call ‘Striking Lottery’. We never know when an end-user buyer would come by, but the returns are great!

The third method ‘Domain Parking’ is where domainers have their domains display pages full of advertisements. The domainer earns from advertising revenue each time a type-in visitor clicks on an ad that appears on the page. Two examples can be found here and here. Generally this method generates revenue from mainly type-in traffic and most domains get 0 type in traffic unless it’s a common or generic name that people would just type in the URL address bar. Bad news is most of these generic domains or rather all have already been registered. However there are still ways to earn with domain parking which I will explain more in the next few posts.

As a domainer, my advice is to choose a strategy to take. Sometimes it’s tempting to sell your domains to resellers when you get frustrated in the long wait for end-users. Making up a clear strategy with reference to the first 2 methods will help you make a firm stand between going in for the fast little bucks or lying in wait for the BIG FISH.

Next up I will be speaking on ‘how to pick a good domain with resale potential’ as well as ‘earning from domain parking’. Hungry for more?

  1. One Response to “Ways of making money with domains”

  2. By widis on Jan 25, 2008 | Reply

    any tips for parked ? Thanks

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Here I'll share my knowledge, discovery and experience related to my hobby and work. Most articles on this site are related to blog design, short reviews, tips and make money online. More

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