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How To Really Profit From Domain Names

How To Really Profit From Domain Names

By Stephen Pope

Haveyou heard about domain names that sold for over a million dollars?Inspired by this, you imagine registering a great domain name, hangingonto it for a while, and then selling it off to become the nextmulti-millionaire. It could happen, but don`t count on it!

Firstof all, many of the truly great domain names are already taken. Second,the dot com bust took some of the wind out of inflated domain nameprices. (If you sell your domain name for millions of dollars worth ofstock in a publicly traded dot com flop, what is the name really worth?)

Thecybersquatter buys domain names totally on speculation. Sometimes hewill register names of famous brands, companies, or individuals. Timeand again, these domain name speculators learn the hard way that theymust respect intellectual property rights. They hope that some largecorporation will pay big bucks to them for the use of the company`s own(already trademarked) name. Instead, they end up with threateningletters from a law firm for their attempts at extortion.

However,you can still make money from domain names if you are sensible in yourapproach. Here are some suggestions on ways to profit.

1.Affiliate Programs: Use your domain name to promote an appropriateaffiliate program. Either redirect to the affiliate site or write areview that links to them.

2. Informational Sites: Createcontent and then profit from it by earning advertising revenue throughGoogle AdSense or a similar program.

3. Redirect to Your OwnSite: Some reasons you might want to do this include preventingcompetitors from using a particular domain name and benefiting fromsearches some users perform by domain name. (For example, if theywanted to order flowers, they might just type"flowers.com"in theirweb browser. You could get some traffic and sales this way.)

4. Product Sites: Create your own or sell someone else`s product appropriate to your domain name.

5.Park Your Domain Names: You might feel that your name has realpotential for resale value. There are companies that will allow you topark your domain on their servers, advertise that your name is forsale, and split advertising revenue with you.

The trick is togenerate traffic for your domain name. That traffic in turn will createrevenue. Then, when you go to sell your domain name, you will have afew things going for you.

First, you will have a fully developedwebsite. A fully constructed building on a piece of land increases thevalue of the 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 no traffic results in nosales, so a website must have traffic to generate income.

Third,you have income. An income property, such as an apartment building, canbe appraised on the basis of its income (as well as other factors).Similarly, the gross income, net profits and cashflow of a website havevalue. For example, if someone offered you $1,000 for your domain nameand website when it was generating $10,000 per day in profits, youwould likely laugh at him.

You really can profit from your domain name investments by adding value and properly developing your web properties.

Aboutthe Author: Stephen Pope, President of Pope Consulting Inc., has beenhelping clients to earn maximum business profits for over twenty-fiveyears. For further information about domain name profits and other Workat Home Small Business Ideas, visithttp://www.yenommarketinginc.com/domain-names.html

Source:www.isnare.com