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To Buy A Domain Name

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You should realize, if you are thinking of buying a domain name with the intention of selling it again quickly for a profit, that you are joining the prospecting game a bit late ? about ten years too late.

You may have looked at some of the domain name auction sites or the domain aftermarket, noticed the outrageous prices being asked, and decided that you could think of a good name yourself, register the domain, and find a willing buyer pretty easily. While it is true that many domain names are currently for sale for thousands, tens of thousands, or hundreds of thousands of dollars, very few names are actually being sold. Those that are sold, are changing hands for a fraction of the asking price.

So everything is not what it seems in the domain name business.

Most domains bought as investments are actually worthless (with a couple of exceptions, see below). They are sitting parked on a server somewhere, getting no traffic, generating no interest, and costing the registrant a recurring $10 a year or more.

Those domain investors who have made millions (by selling sites like men.com or business.com) did it by registering thousands of names in the early days, hoping that they go some gold among the dross. The gold field is now mined out. You may know that every word in the dictionary is now registered to someone.

But let's not be too negative. You can still make money from domains. How can it be done?

To continue the goldfield analogy, if you want to make money from domain investments, you need to be very imaginative or have some inside knowledge ? in other words, you have to find an entirely new gold-bearing field. You need to anticipate products or trends before anyone else, and register a pile of names that may become desirable later.

If you can do this, while avoiding potential trademark or cybersquatting disputes, you may be able to profit.

The other exception to the rule that most domains bought as investments are worthless is to do with site building. If you have the skills to build a site, optimize it and get some backlinks, it could become a valuable property because of the traffic it receives from the search engines. Though this takes more time or more money, or both, there is a much better chance of making a financial return on a domain this way ? by selling products, using affiliate programs or Adsense, or selling the whole site and domain itself.

Doing this, you have created something of value, and finding a buyer will be that much easier, particularly if you get your site some Pagerank or can prove it gets decent traffic.

The gold is still there, but these days you just have to work a bit harder to find it.

To Buy A Domain Name

When the time comes to set up your own internet business one of your first thoughts is to buy a domain name to establish a web site for your new business. You may spend a lot of time dreaming up possible names and testing their availability but there is another option you should consider -- buying an existing domain name.

Obviously you do not want to buy an existing web site for your new business as you wish to create a web site that accurately reflects your business vision, but there are a number of advantages to buying an existing domain name and if you do not yet have your heart set on a new domain name you will likely find an existing domain name available at a price not much greater than you will pay for a fresh name and an existing domain name brings a number of advantages.

One of the primary advantages of an existing domain name is that it already has traffic flowing toward it. Obviously the amount of traffic will vary greatly depending on what the current owner has done for promotion but any traffic is more than the zero visitors a fresh name will deliver.

Another advantage is from search engine optimization. Many domainers will have at least put in a small amount of time optimizing their domain name portfolio for search engines. Others put in a great deal of time and effort targeting key words and making sure the domain name is listed. It takes time for various domain names to work their way into search engine listings and if someone has already done that work for you then you are ready to capitalize on their groundwork as soon as you take over the name.

A third advantage is that the wild frontier of short, targeted, key word domain names is over. It is not impossible but very difficult to find an unregistered domain name in a short, catchy phrase and even more so if you have a specific key word in mind. However, many of the domainers who registered these domain names did so as an investment rather than a long-term project of their own and so are willing to sell. The only way to acquire many of these great domain names is by purchasing an existing domain name. You will not be able to find one to register fresh.

Choosing the right domain name for your internet business enterprise can be an exciting and challenging time but if you take the time to learn more about the available domain names you can buy then you just might find the bargain of a lifetime and start off your business with a bang.

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About Author

Both Dee Buteland & John Neyman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Dee Buteland has sinced written about articles on various topics from Computers and The Internet, The Internet and Computers and The Internet. To read more about domains, see at my site buteland.com.. Dee Buteland's top article generates over 4400 views. to your Favourites.

John Neyman has sinced written about articles on various topics from Credit Cards, Acne Treatment and The Internet. Check out Leaders Excel Solutions at www.leadersexcelsolutions today for all of your website needs. . John Neyman's top article generates over 6600 views. to your Favourites.

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