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Domain trading is the buying and selling of domain names and it is a business that has been on for many years. It promises a high yield on investment but can be very risky. You can turn $25 into $450 or more within a short time and you may buy a domain name without ever selling. It is an interesting terrain to navigate. If you want make money with this business, you need to get as much information as possible so that you will be able to succeed.
One of the benefits of this business is that you only need to register or buy a domain name and not necessarily developing it or pulling traffic to it. You don’t even need to put any content. Just own the domain – that’s all. You may be wondering where and how to buy domains. You have two options to choose from and you can use both. The first option is to register through registrars and this is referred to as the primary market. Top registrars include GoDaddy, NameCheap, iPage, 1and1, Dynadot and so on. The price for registration varies from one registrar to another and there may be additional products added by each registrar.
The second option is to buy an already registered name and this is referred to as the secondary market. Examples of secondary markets are Sedo, GoDaddy, Flippa, Afternic, just to mention a few. Pricing at the secondary market is a bit on the high side and this is determined by so many factors like the age, category, number or words, valuation of the names and so many other factors. However, it is important for you to note that a domain is renewable every year and you have to factor this into your plan when making purchase and sale decisions.
Furthermore, choosing the right domain name is very crucial to your success in this business. You don’t just go ahead to buy a name you can think of. It doesn’t work like that. It’s not gambling and you need to be able to identify marketable names. You can visit news sites like TheDomains, Domaining, DomainInvesting and so on, to know the latest trend in the market. It is not easy to predict a name that will sell but if you get familiar with information about the industry, you will be better positioned to make the right decision. Typically, the best names are short, easy to remember, easy to spell, easy to pronounce and so on.
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