Thursday, March 26, 2009

How You Can Make Money Buying and Selling Domain Names

There are several ways to make money online. One of the most well-known and traditional ways is the buying and selling of Internet domain names. Domain names are cheap, plentiful, and are very easy to buy and sell. Compared to other types of Internet investments, domain names are probably one of the safest. The most attractive aspect of buying domain names is that even if the absolute happens and you receive nothing back on your initial investment and lose everything on it, you are only losing out on about $5-$10. The small investment to get started in this is also a great way for Internet entrepreneurs to start out making money quickly, while slowly moving into more lucrative endeavors.

The key to making money with domain names is trial and error, luck and a little homework.

What makes a domain name profitable?

Domain name suffixes like .com, .net and .org are the most common and are typically the most sought after. Its is worth mentioning though that 10 years ago, .net and .org were considered substandard to .com, today however some of the largest organizations in the world use a .net or .org domain name suffix. Newer endings such as .TV, .WS, and .FM may just be the newest versions of the .net's; so potential investors may want to keep an eye out for these less conventional endings.

The most successful domain name sales are typically larger businesses that need a specific domain name that may already be taken. There is usually a substantial offer made to the current owner to sell out. Other times domain name investors will find existing businesses that may have not purchased the .net, .org or other domain endings.

There are so many ways to profit from buying and selling domain names that learning everything you can about the business before investing is probably the best idea. The initial investment in your education will give you a competitive edge in this savvy industry.

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Why Are Domain Names You Buy Used Instead of IP Addresses?

Many people wonder why you need a domain name at all. They are really a unique address to be able to find a web site anywhere in the world.

When you register a domain name a web site does not automatically appear by typing the domain name into the browser. You have to build a web page then upload the file using an ftp provider. This ftp provider should come with your hosting provider.

This is why you must always consider the hosting when you buy a domain because it is easier to host where the name is registered. The process of transferring a domain name to another place to be hosted will be discussed in a future article. It is just always the best practice to look for to highest uptime guarantee and very accessible customer support and buy domains at the same place. It is easier to manage everything with it centrally located.

When you choose hosting the account will be assigned a numeric address, called an IP address, this will be used for your web site. This is a series of numbers. Your domain and IP address will be stored in a database with all other domain names and IP addresses.

When visitors enter your domain into the browser, your domain name will work like an address forwarding service by forwarding visitors to the IP address where your web site is stored. Domain names are used instead of the actual IP addresses because most people would find it too difficult to use the long numeric IP address.

This is why when choosing good domain names to buy always try to pick something that is easy to remember and to spell. People do not always type the address into the browser when they are looking at someone's website advertisement.

When you buy domains you can also do other things than just create a website. Many creative people will search for valuable domain names to buy and resell like property. Domains can be a very good investment.

You can place the domains you buy for sale and you can also park them while you wait for someone to make an offer. Parking the names you buy can also generate some income by the parked Google ads people click on.

Another creative way to use the domain names you buy is to forward them to a domain you are using and funnel the existing traffic of the domain names you buy to your existing website. Many marketers use this strategy to pick up lots of traffic at a very reasonable price.

Always remember that when searching, choosing and registering domain names to buy no matter how you use the domain names, the reason they are used instead of an IP address is a domain name is easier to remember and use.

Sherrie Chastain
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