Domain name trading has become an increasingly competitive industry in recent years. Every day, many people are getting actively involved in the purchasing and selling of domain names. The following is a basic guideline for anyone who wishes to make money through domain name trading.
Domain speculation refers to the process of assessing the value of a domain name. Domain speculators fall in two main categories: those that purchase domains, create websites, and then sell the domain as well as the site, and those that purchase and sell domains without building sites around them. Both options can be very profitable. However, for those who are starting out in domain name trading, the second option is easier to learn.
Finding valuable domain names
Purchasing a domain name is not hard. The difficult part is finding one which will eventually be profitable. A domain name’s value is determined by several factors, the major ones being SEO and memorability.
One way of getting a search engine optimized domain name is to buy already existing domains through auction websites. Many domains which have expired recently still have some SEO value which was created by the previous owner. They might still have a high page rank, as well as some active backlinks on the pages. Therefore, buying such a domain will give you immediate SEO benefits with minimal effort on your part.
Another way of finding valuable domain names is through using keyword research tools. Such tools are popular with many webmasters who are looking for domains to purchase. If you acquire a domain name which is keyword-rich, it won’t be very difficult to find a buyer. Keyword research tools played a major role in finding a domain name for my blog which offers ANhosting discounts and midphase coupons.
Selling domain names
Once you have purchased a domain name, the next step is finding a buyer. One way of finding interested buyers is through forums and auction sites. Auction sites are usually very competitive. With niche-specific domain names, you could find buyers by advertising on relevant forums. When posting on such forums, remember to leave a link at the end.
Domain name squatting
In many cases, domain names take several weeks, months or even years to sell. Therefore, when trying to sell your domain name, you need to be patient. Many people give up on domain name speculation after several months of waiting. It is important to look at domain name squatting as a kind of long term investment strategy.
Rather than trying to sell just one domain name fast, consider buying and selling many domain on a long term basis. Though such an investment will cost you more, it will eventually result in a greater profit.
Charles Mburugu is a technology lover and often writes about internet marketing and social media. He also writes about coupon deals at discount blogs that share ANhosting discounts and midphase coupons. Currently, he is writing for a coupon site which offers midphase promo codes and AnHosting promo codes.