PURCHASING DOMAIN NAMES: PROFITABLE OR COSTLY?

2007-06-20 15:49:53

( Web Hosting-SEO-Web Design )



When thinking about purchasing domain names for investment (either as newly listed or as a reseller), there is a need to concentrate on how you are going to earn money from your collection of domains.

Without a transparent and straightforward vision for your domain investment, it is best to forget about investing in the business.

Why Invest on Domain Names?

Keep in mind that a domain name that is not attracting visitors or generating sales is worthless. In reality, it has a negative cost since you will be obliged to pay the cost of yearly renewal to sustain the registration.

On the other hand, if you can look for ways to generate income from a domain name even while standing by to discover much greater value from the domain through sales or lease, then you are in stable position. The longer a domain name pays for its maintenance within the year, there is really nothing wrong in keeping that domain for as long as you want.

Stock Market Investment versus Domain Name Investment

There are a number of similarities that can be taken between purchasing domain names and investing in the stock market. Money is earned from stocks by trading low and selling high, and by Earning money from stocks can You can make money from stocks by buying low and selling high, and by keeping the dividends paid out on the stock you have at the time you possessed the stock.

Likewise, the first profit in most cheap domain name investments will be released at the time of selling or leasing. Also, when the domain name is getting moderate stream of projected traffic, this can be controlled and converted into continuing income stream while waiting for the completion of the domain transaction.

Just the same, the number of differences between stocks and domain names is quite significant. The industry of domain names is ill defined, with many players and few rules. It lacks fluidity without guarantees that a certain domain name will be sold within a specified timeframe.

Purchasing domain names is very risky, with a high chance of earning for the right domain or losing the total cost of the investment on the disadvantage.
The last situation is so far the more frequent with people who purchase domain name to resell ended up wasting the money they invested.


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