By J. Stephen Pope
How To Really Profit from Domain Names by J. Stephen Pope
Have you heard about domain names that sold for over a milliondollars? Inspired by this, you imagine registering a greatdomain name, hanging onto it for a while, and then selling itoff to become the next multi-millionaire. It could happen, butdon`t count on it!
First of all, many of the truly great domain names are alreadytaken. Second, the dot com bust took some of the wind out ofinflated domain name prices. (If you sell your domain name formillions of dollars worth of stock in a publicly traded dot comflop, what is the name really worth?)
The cybersquatter buys domain names totally on speculation.Sometimes he will register names of famous brands, companies, orindividuals. Time and again, these domain name speculators learnthe hard way that they must respect intellectual propertyrights. They hope that some large corporation will pay big bucksto them for the use of the company`s own (already trademarked)name. Instead, they end up with threatening letters from a lawfirm for their attempts at extortion.
However, you can still make money from domain names if you aresensible in your approach. Here are some suggestions on ways toprofit.
1. Affiliate Programs: Use your domain name to promote anappropriate affiliate program. Either redirect to the affiliatesite or write a review that links to them.
2. Informational Sites: Create content and then profit from itby earning advertising revenue through Google AdSense or asimilar program.
3. Redirect to Your Own Site: Some reasons you might want to dothis include preventing competitors from using a particulardomain name and benefiting from searches some users perform bydomain name. (For example, if they wanted to order flowers, theymight just type "flowers.com" in their web browser. You couldget some traffic and sales this way.)
4. Product Sites: Create your own or sell someone else`s productappropriate to your domain name.
5. Park Your Domain Names: You might feel that your name hasreal potential for resale value. There are companies that willallow you to park your domain on their servers, advertise thatyour name is for sale, and split advertising revenue with you.
The trick is to generate traffic for your domain name. Thattraffic in turn will create revenue. Then, when you go to sellyour domain name, you will have a few things going for you.
First, you will have a fully developed website. A fullyconstructed building on a piece of land increases the value ofthe real estate property. Similarly, the value of your domainname is enhanced by a complete and operating website.
Second, you have traffic. Just as a shopping mall with notraffic results in no sales, so a website must have traffic togenerate income.
Third, you have income. An income property, such as an apartmentbuilding, can be appraised on the basis of its income (as wellas other factors). Similarly, the gross income, net profits andcashflow of a website have value. For example, if someoneoffered you $1,000 for your domain name and website when it wasgenerating $10,000 per day in profits, you would likely laugh athim.
You really can profit from your domain name investments byadding value and properly developing your web properties.
For further information about profiting from domain names, visithttp://www.yenommarketinginc.com/domain-names.html
RESOURCE BOX:
J. Stephen Pope, President of Pope Consulting Inc.,http://www.popeconsultinginc.com/ has been helping clients toearn maximum business profits for over twenty-five years.
For valuable Work at Home Small Business Ideas, visit:http://www.yenommarketinginc.com/
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