Want to know what it takes to make money with domain names? This concise guide will lead you through and make you understand how to profit from domain names.
You must have heard of domain names that have sold for over a million dollars. Inspired by this feat, you imagine registering a domain name, hanging onto it for a while and then selling it off to become the next internet millionaire. I agree it could happen, but don’t count on it.
Why? First of all, many of the truly great domain names are already taken. Second, the dot com bust took some of the wind out of inflated domain name prices.
Someone buys a domain name totally on speculation. Sometimes he will register names of famous brands, companies or individuals. Time and time again, this domain name speculator learns the hard way that they must respect intellectual property rights. He hopes that some large corporation will pay big money to him to make use of the company’s, already trademarked, name. Instead, he ends up with threatening letters from a law firm for their attempts at extortion, instead of a mouth watering deal.
The above is a scenario of flopping when you want to make money with a domain name. But you can still make incredible amount of money from a domain name if you are sensible in your approach.
Below are some suggestions on ways to profit from domain names the smart way:
- Affiliate Programs: Use your domain name to promote an appropriate affiliate program. Either redirect to the affiliate site or write a review that links to them
- Informational Sites: Create contents and then profit from it by earning advertising revenue through Google adsense or other similar pay per click programs like Chitika and others.
- Redirect to Your own Site: There are some reasons you might want to do this which includes preventing competitors from using a particular domain name and benefiting from searches some users perform by domain name. for example, if they wanted to order sport shoes, they might just type sportshoes.com in their web browser and it redirects to your own site. You could get some traffic and sales this way.
- Product Sites: Create your own or sell someone else’s product appropriate to your domain name.
- Park Your Domain Names: You might feel that your domain name has real potential for resale value. There are companies that will allow you to park your domain name on their servers, advertise that your domain name is for sale, and split advertising revenue traffic for your domain name. The traffic in turn will create revenue. Then, when you sell your domain name you will have a few things going for you.
To profit from your domain name the way most smart people do it is to basically understand the following:
First, you will have a fully developed website. A fully constructed building on a piece of land increases the value of the real estate property. Similarly, the value of your domain name is enhanced by a complete and operational website.
Second, you have traffic. Just as a shopping mall with traffic results amounting to sales, so a website must have traffic to generate income.
Third, you keep on generating income. An income property such as an apartment building can be appraised on the basis of it’s income as well as other factors. Similarly the gross income, net profits and cash flow of a website has value. For example, if someone offered you N10, 000 for your domain name and website when it was generating N100, 000 per day in profits, you would likely laugh at him.
You really can profit from your domain name investments by adding value and developing your web properties.
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February 2nd, 2012|
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