Domain name business which is also known as Virtual Real Estate is one of the easiest ways to generate cool cash online. it’s Just like the case of owning a property, where you could decide to sell the land or rent it out or even lease it out for a period of time so you could make money on it over and over again.
Starting up a domain name business doesn’t require much capital, it’s relatively cheap to start off. It comes in two forms;
*Domain Name Monetization
*Domain Name Selling
These two businesses are quite different. Domain name selling is the process of selling your domain name once and making a one time profit, whereas Domain name monetization is the process of renting your domain name and you get to make profit from it on daily basis. You could however decide to monetize your domain name; that is rent it out for a given period of time before outright sale. This way you get to sell it at an even higher price since it must have gathered traffic and backlinks.
For further understanding, I will highlight extensively with details at these two strategic means of making money from domain names.
Also READ : How To Save On Facebook Advertising Cost
DOMAIN NAME SELLING
There is one guiding principle that lies with the buying and selling of domain names. You must know how to create excellent domain names. I mean creating domains that people will love and scramble to pay for. For example www.luxury.com was sold for $400,000 while www.skills.com was sold for $40,000.
This shows that you must develop the skills to generate great domain names. You don’t need a doctorate to be able to do this; a little common sense does the trick. Other examples of exceptional domain names include;
Some other outstanding domain names and how much they were sold for are;
- www.forexforum.com $1,000
- www.virtualgaming.com $1,700
- www.webbiz.com $2,000
- www.signfactory.com $5,000
- www.forextraders.com $8,000
It’s very obvious that the last three domain names were sold for higher prices compared to the first three on the list.
This is because their names sounds better and they target specific niches. However, they, were all profitable. Come to think of it, even if you sell a domain name for $200, it is still some profit considering the fact that it costs you less than $20 and 30 minutes of your time to put it into place. If you should sell 20 domain names in a month at $200 each that would amount to $4,000. If you happen to really put a lot of efforts and sell 10 a week for 1 month that would be $8,000. Just imagine! Even some oil workers don’t earn that much. In Domain name monetization, you are not going to be selling your domain name.
Also Read : How To Find Online Writing Jobs That Pay
You would be monetizing it. This means that adverts will be placed on it so that for every clicks that is done on the advert, you get to earn something. Creating a domain name, like I said earlier doesn’t require much stress. You don’t need to be a professor or Nobel laureate. Just ensure the names are not too long or difficult to spell or remember. Use names that people are searching for. For example, take a good look at these domain names that deal with affairs and love relationships;
If you had the choice of buying 1 of them, which would you pick?
So the key to creating an excellent domain name is “SIMPLICITY” . Always go for less stressful names. In my next article, I will highlight on where and how domain names can be registered and monetized.