There are many very lucrative ways to create a home based business online and an opportunity that’s one of the most effective techniques and one of the fastest tactics for generating a full time income from home is domaining. First of all, for the uninitiated, what is domaining?
According to Wikipedia: “Domaining, or domain name speculation, is the practice of identifying, acquiring and registering Internet domain names with the intent of selling them at a later time for a profit. This is the business of buying, selling, and developing domain names.”
“It is also used to describe the practice of monetizing domain name registrations through pay per click or parking pages.” A domain of course is your URL or your website name or more specifically your web page’s address on the Internet.
Names ending with the .com extension remain the most prized possessions on the web in this field as well as for website owners in general. Domains ending with .co are quickly rising in prominence because of their close relation to the .com extension and because business owners like the reference to the word company inferred by the .co ending. Names ending with .org and .net remain in high demand but traditionally, when flipped, sell for 50% to 60% less than .com extensions.
Harvesting or searching for a top ranked name has become more difficult because of the depletion of the more popular .com. Over the years some people have purchased, in bulk, different combinations of the .com names in the hope they would become very valuable in the near future. However, domaining is still a very profitable Internet industry for a variety of reasons.
First of all, this business has a very low start up cost for anyone who wants to make money online but has a limited budget. It’s recommended that you start out by purchasing 3 or 4 names, preferably containing .com extensions, and then registering them for sale on some of the more popular domain directories on the web.
You can buy 3 domains for $30.00 at most of the leading name registration sites online such as Go Daddy and Name Cheap and sometimes flip them for 10 to 15 times their original cost depending on the demand for the names you purchased.
Secondly, there are many excellent programs and websites available online to help someone just starting out in this business by giving advice on the best places to advertise your names, the best names to buy and how much to ask when advertising your domains for sale.
Third, your return on investment can be astounding given the right name and the right circumstances. For example, sex.com is one of the most expensive names ever sold when it was purchased for $14 million in 2006. If you’re interested it’s back on the market for sale with the bidding starting at $1 million dollars.
The odds of this happening to you are very small at this stage of the game but once you get established and become more experienced in this field you may be able to acquire a name which is very much in demand and resell it for 10, 20 or even 30 thousand dollars and sometimes more.
A fourth benefit of selling virtual real estate is you can expand your business by branching out and by building a website around each name you own, having it rank in the top ten for related searches on Google and then selling your website for a considerable profit.
So as you can see domaining offers significant advantages for anyone wanting to start a home based business online with the main benefit being it can provide a very attractive income within a very short period of time for the new Internet entrepreneur.
