Use good business sense to create a hefty domain names portfolio

Domain names can be turned into money if you are wise and have a finger on the pulse of the cyber world. If you find quality domain names and manage to register them, then it is quite possible that a domain name can fetch you considerable sums of money when sold.

Domain name investing is a business in which according to the cyber gurus you have complete control over your investment. To become successful you must master the art of buying and know when to sell. Success means two things, guts and vision. There are domain name players who capture a slice of pie by purchasing thousands of domain names pertaining to a specific sector. They are then in full control of the demand as well as selling price. The money spinning trick is to release the names slowly in the market. The domains that stay in their custody are not “dead” investments. They are parked such that they generate revenue from “pay-per-click” advertisements.

Domain portfolios can be crowded with many names even over 40,000 names or just contain a few jewels, top-notch domains. If bought wisely domain names can generate enough revenues to pay for themselves many times over.

• Buy only good domains by using DomainsBot and HotLists on sites like Namewinner or Pool to determine which ones are worthy and which ones are not.

• Buy short and specific domain names.

• Be sure to get the ones purchased by you appraised. There are several sites like www.appraisalblast.com that will do the needful.

• While you are waiting for the big sale let the domain names generate revenue for you. Set up parking pages that provide links to other web pages earning “pay per click” revenues. Ensure that traffic is not just generated but sustained. The name must be such that it has natural positioning. If it is not so, you must either sell off the domain name that is a junk or dud or make effort to develop it. What ensures and sustains traffic at a steady rate is content. To this end, start up a website like a membership portal, music site, games site, or news feed. The next step is to build traffic by setting up the domain names strategically. The aim is to run simultaneously many revenue generating streams like selling a specific service, displaying related advertisements, putting up content to tease visitors, or offering unique one of a kind experiences to visitors so that they come repeatedly to the site.

• For selling a domain name there are three main avenues.

o Land a sale on ebay by starting at a low price which invites bidders. Make sure the domain name is a part of the description. Include an appraisal of the domain name projecting its true value. Be sure to highlight all the important factors. Optimize your chances by getting a bold listing and aiming to end the auction on Sunday night.

o Opt for selling on established domain sites like Afternic or Sedo. They take a commission on sale but it would be worth it if your domain name commands a handsome price.

o If it is not a very important domain name try selling on domain forums.

• If you have had the foresight to purchase “a treasure” then contact large business houses to whom the domain name may be relevant. Be sure to let them know why your domain name will be of benefit to them. If you are successful you will get a very good price for the domain.

The keys are:

• A quality domain name with a short recognizable nomenclature.

• A name with no numbers.

• Marketability. For example if there is a stock market boom then domains that pertain to this field will fetch very good value.

• A fool proof marketing strategy.

A major domain name player must watch the market, know how to monetize his portfolio, balance his investments between high-profile key word based domains and mediocre ones, plan on recovering his investments by thinking of innovations like Rick Schwartz’s “click capitalist,” plan. In this he aims to invest traffic generated by domains into web-developer sites asking for stock as exchange.

Paul Wilson is a freelance writer for http://www.1888Discuss.com/domain/ , the premier REVENUE SHARING discussion forum for Domain Forum including topics on domain trading, domain registration, domain sale and offers, adult domain and more. He also freelances for the premier Domain Site http://www.1866Domain.com