Just like real world real estate, domains have value as property that can be sold, build and even renovated. Sure, you were aware of that already, however, I bet you are asking right now exactly how you can earn an income with domains. Truth be told, there is a huge amount of opportunity when it comes to your portfolio of domains, much more than most people would even begin to understand. Here are a few pointers that will help you earn an income with domains.
Purchase To Sell A Domain
This is the most commonly seen form of domain monetization. It is as simple as researching a niche, and finding the domains that are available within that niche, purchasing one that is keyword rich, then selling it on one of the many marketplaces. However simple as that may sound, it is not as simple as going to your favourite registrar and purchasing a brand new domain. There are other ways to find domains of value, one may include using the many software applications and web services available to find a domain that is well aged, that may already have built up PageRank.
In most cases, domains like these will have a much higher chance of selling in the marketplace, however, care needs to be taken when purchasing, and a certain level of market research needs to be undertaken as well. For example, whilst the forex market may go wild over specific domain names that have certain terms included in the domain name, the dog grooming market may not be so eager to purchase rich domain names. In most cases, the price will depend on how competitive that specific market is, and how much the impact of having a rich domain name will have.
Purchase To Develop Or Renovate
Adding value is something that I talk about quite a lot, and considering that my business is buying and selling websites, it is a big part of my business structure. Consider this as a lesson in web real estate. You purchase a domain that has potential commercially, and you develop a website and more potential on top of that website.
Whilst this is a much more time consuming method, it most definitely ends up in a higher return on investment, and at the same time, if you are doing things right, and have researched your market properly before hand, you will be able to earn an income whilst you develop on that domain.
Purchase To Lease
This is a much more complex area that not that many people have jumped head first into, and with good reason. It is a hard market to break into, however, it comes with the highest return. This method involves researching new markets, and in a nutshell, knowing what is coming down the pipe before it happens.
For example, when the iPad was announced, there was a huge buy out of all of the major iPad domain names. Out of those major domain names, there would have been a handful that some people would love to buy from who is now selling them at a much higher cost, however, in most cases, the prices are outrageously steep, with most people unable to afford the price. This is where leasing comes into play.
By offering domains at a monthly figure, what this means is that you can literally turn an initial ten dollar investment into a multiple thousand dollar recurring income over the course of a few years, and you could imagine how this would work if you had several domains of high value. The only hard part of this method is actually finding the domain names, and making sure that you are at the forefront of the marketplace when new trends start to come down the pipe.
There are many more ways in which to monetize domain names, however, these are the most common methods, as such it should open some eyes a little. One thing I will close on though, is to always be on the lookout for new ideas and possibilities, including new domain extensions that are brandable, a,d whatever you do, always stay on the cutting edge. If you do this, you should start to make a very rewarding career in domaining.