Domain Name Beginner Guide

Dec 24th, 2010 | By | Category: Domain Sale and Parking Tips

by grigio from namepros.com

Domain Name Guide
What You Need To Know Before
You Enter The Domain Name Industry
Secrets That My Experience Can Give You

Why join the domain industry:

I got involved in the domain industry because I think that this is the “real estate” of the future.
Reason #1 – Every individual or company that needs a web site will need to buy a domain name.
Reason #2 – 10 years from now, I don’t want my child to come to me and say, “Dad, in the beginning of the 21st century, why didn’t you purchase domain names? Back then everything was cheap and lots of domain names were available. We could have made a lot of money!”
I shared this concept with my mother and related to where they had bought their house.
You and I have the advantage of time – we were here first!

What is a Domain Name?

A domain name is an Internet address. When you want to go any place in the world, you need to have an address. A domain name is an address on the World Wide Web.
Instead of using the IP address which is all numbers (179.894.837.645) for the web site address, it is easier to remember and easier to type a name (Football.com).
Just like real estate, it’s very important to have the right “location.” A house in Beverly Hills, CA will probably be more expensive to purchase than a house in Phoenix, AZ but it will be worth more when you sell it.
Domain names work the same way. A domain name like House.com will be more valuable than a domain like Houseforyou.com. House.com will be worth more because there will be a lot of people that type in that domain name when they’re doing research or browsing. You will get a lot of traffic from people just checking to see what is at that domain address.
How to choose a good domain name
First you need to choose a topic that you like. If you choose a topic that you don’t care about, it will be harder for you to find a good domain names. If you’re a movie aficionado, consider buying/selling domain names that relate to movies or movie stars or the movie industry. If you’re a football fan, consider buying/selling domain names that relate to football teams, football equipment or the football industry.
Yes, a lot of the good domain names are taken. But there are always new things that happen in the world along with new celebrities, new businesses, new types of entertainment, new technologies, new stories, …
Those are the best opportunities for you to find a good domain name.
Watch TV, listen to the radio, talk with friends. Be aware of the small and the big things that are happening around you. Make notes of the domain name possibilities that you think of while you are at work or school, in the car or even jogging on the street. Surf the Internet. Visit web sites that are related to domain names. Youtube.com is a great idea source because you can watch for trends and popular topics. You never know from when the right idea is going to come to you.
If the domain name is in a good category like real estate, finance, technology or TV, it will be probably be worth more money.
Track all domain name sales at Ebay.com, Namebio.com, Sedo.com or Moniker.com.
The first domain that I sold was Hobbitthemovie.net. I found out that MGM would be doing a movie based on the book “The Hobbit.” I liked the earlier movies (Lord of the Rings 1, 2, 3) so I decided to look for a domain name that was relevant to the new film coming out.
I found that Hobbitthemovie.net was available. I decided to purchase it, even though it’s a .net domain and not .com. The .net wasn’t as good of a location but I felt it still had potential.
I purchased it on Yahoo.com and I published a page at the address that the domain name was for sale. I got an email from a buyer who wanted to buy the domain. I was surprised since I thought that I would need to keep the domain until the movie launched. But I took the opportunity and sold it for $150.
Sometimes which domain name will sell will surprise you despite all of your research and planning!

How to buy a Domain Name:

After you decide on the domain name that you would like to invest in, you need to choose a company that registers domain names. I recommend GoDaddy.com or Yahoo.com. Of course there are many, many more. It will be cost effective and more productive to manage all of your domain names registrations at one company.
When researching a company to do your domain business with, look at the headquarters location, size of the company and number of years in business. You may have customer service difficulties with one of the firms outside the US. Customer service is very important to you as you buy and sell therefore you want a company that will respond to your calls or emails. You also want a stable, financially sound company that you can depend on.
You will have the option to register the domain name for 1, 2, 5 or more years. If you are buying a domain name that you feel you will need to hold while its value increases, take the 5 year option and you can save some money.
Take advantage of promotions and coupons offered at sites such as fatwallet.com/forums/hot-deals/72507 or namepros.com/domain-name-discussions/577802-godaddy-discount.codes.html to save on your purchases.

What to do with the domain after you purchase it:

After you purchase the domain name, you can direct it to your existing web site or park the domain name in parking web site like Sedo.com or GoDaddy.com.
If you have an existing web site for your domain name sales, it could be a great idea to set each of your domain names to forward to your existing site. You will then be sending all the traffic your various domain names generate directly to your web site. This will increase your web site traffic and advertise all of your domain names to each visitor.
If you park the domain name on a parking web site you can earn money. The landing page for your domain name is going to be full of ads and every time someone clicks on one of the ads you receive revenue.
If you are going to build a web site for your domain name(s), I feel it is best to register the domain name with the same company that will be hosting your web site. Having both with one company will make it easier to manage the details as you buy and sell.
How to sell your domain
You have choices to promote or sell your domain.
Private sale – This is the best option because you going to get the highest amount of money for your domain name. How are you going to do that? Spread the word! Tell everybody about your domain name business. Use Facebook, My Space, domain blogs, forums,… any source that can spread the word for you.
EBay – It’s a great tool for buying and selling things including domain names. Sometimes you will be amazed at how many people are buying domain names and selling them on EBay. EBay does have a lot of traffic on their site. However, you probably are not going to get the same type of offers as you would in a private sale.
Remember to finish your listings in EBay on Sunday evening when you have the highest volume of people looking for domain names.
Domain Web Sites (Sedo.com or Go Daddy.com) – The domain name web sites will get you lot of traffic for your listing. The larger domain name players (aka sharks) will see your domain and decide if they want the name enough to buy it from you. If you have a really good domain name, you can get a good price for it. If you have an average domain name, it’s going to be hard to sell it on a domain name site because the people cruising those sites really know what they’re doing.
Whatever method you choose to sell your domain name, you need to remember that you never know who is looking for which domain names. You will need patience. But if you stick with it, you can do a nice profit.

Summary:

* Try to stay up to date on what is going in the world at this moment.
* Talk with people in the domain industry via blogs or forums.
* Look for .com domains as your first choice.
* Look for short domain names of one or two words.
* Register all of your domain names with one company. Use promo codes or coupons to save money.
* Decide carefully whether you should point your domain name to your web site or park it on a domain name web site.
* Consider your options when choosing how to sell your domain name.
* Be patient! Don’t get in a rush or you won’t find the best price to buy your domain or get the best price when you sell.



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