Is buying and selling domain names a legitimate business?
How much could you make, and is it worth the time and financial investment?
Buying and selling domain names is a legitimate business as long as you are not dealing in trademarked names.
Domain flipping has reportedly grown to become a $2 billion dollar a year business.
How much can you make?
DNJournal Reports that Cooking Games.com recently changed hands for $350,000.
Not a bad return for one domain.
We need to realize though that this is a one off, snaring a sale like that means that you need to have the domain that people want, when people want it.
This means that most people are going to go through a process of trial and error, registering a number different domains, and either dropping them when it’s time to renew them, or selling for prices ranging from a couple of dollars up to the thousands for a domain.
Going in with your eyes open, doing a lot of research, and working with logic are keys to being successful.
Stay away from trademarked names.
I saw a great domain for sale today on Ebay – it had me drooling, and almost ready to bid!
It was six years old, and had changed hands a number of times. The reason?
I suspect that the name “Visa Card” may have had something to do with it!
And because of that well known name, I steered clear.
A generic domain geared towards credit cards would be fine, but once you start using Visa or Mastercard, you could well be in deep water.
Years ago I wrote an ebook call “Ebay Tips and Tricks”, and registered a domain name to suit. A short while later I received a letter from the company asking me not to use the domain.
That’s when I decided not to use trademarked domains.
Had I used a name like EasyAuctionTips.com, or AuctionTipsAndTricks.com and written about Ebay and other auction sites, there would have been less chance of getting into trouble.
When you register a domain, or are looking to buy, ask yourself who will like that domain apart from you?
While your Mom might think that you are very clever, and your spouse/significant other lauds your intelligence and prowess, is anybody else going to care?
You see, it’s what the end user likes that counts!
And it is the end user that that you always need to please.
Otherwise all you are doing is lining the pockets of credit card providers, domain registrars and the like.
Remember that if you are doing this on the side, and you buy say 100 domains at $10 each, next year, if you haven’t sold them, you’ll have to find another $1,000.00.
So, if you don’t think that you can monetize them, or they are being sold for cents in the dollar, go outside and take a long, deep breath! And think again.
There is money in domain flipping, but it takes effort, patience, and a lot of research!
