Domain
name trading
One of the huge profit businesses
online is trading domain names that is buying and selling domain names. The
business is very lucrative and experienced traders make thousands of dollars
doing only domain name business.
Trading domain is done online so its
not location specific so investment in this kind of business can be done so
long as you have internet connection. Many internet entrepreneurs often
discover and understand domain name trading after several years of searching
for viable online business opportunities.
However, when they get the hang of
trading domains they are hooked and virtually do nothing else but trade domain
names. Therefore, anybody interested in trading domain names should learn the
basic and start gingerly until they gain proper experience.
Domain names can point to a specific
IP address or multiple addresses. They have a URL, which is an abbreviation of
uniform resource location.
Image of.com | Source
What
is a domain name?
So what exactly is a domain name?
Domain names are sometimes referred to as internet real estate because of the
way they function. A domain is an identification of an IP address that has been
registered by a domain name system.
Domains generally have to do with an
IP source and the location of a particular name. Every website has a domain
name such as eBay.com, amazon.com, Google.com, or yahoo.com.
The name represents a hosted
location of the website or online property by a particular host provider.
Domains are rather interesting because they are not case sensitive and are
easily written lower or uppercase alphabets.
Like most real estate or landed
property, the value of land varies according the location. Prime property
attracts premium prices while property in low income areas attract less price.
For example highbrow area attracts
high property value in comparison to the suburbs.
Top
level domains
Top level domains
A
beginners guide to Buying and Selling Domain Names
Different level of Domain names
So when looking to invest in domain
name business it is logical to identify the different level of domain names.
Most prime domain names are already taken like art.com, health.com pet.com etc.
This is because domain names first
appeared in the early eighties and by 2009 had over 190 million registered
domain names. Top-level domain names introduced in the 1980s, are mostly name
extensions like .gov, .edu, .edu, .net, .com, .int, .mil.
Finding and buying a top-level
domain name can be costly but like property increases in value over time. The
more difficult to get a domain name the more expensive it gets.
Top-level domain names have sold for
sums ranging from $1000 USD to $50,000 USD. While second level domain names are
also good to buy but they do not attract as much money as top-level domains.
Each country also has domain names extensions
like .ng for Nigeria and .za for South Africa. Some examples of second level
domains are domain names like .co, .uk, .sos, .state.
There is also the third level, forth
and even fifth level domain names but we do not think you should bother with
domain names on the third level downwards.
Domain
levels
Top
level
|
Second level
|
Third level
|
.com
|
.eu
|
.me
|
.net
|
.co
|
.guru
|
.info
|
.uk
|
.co.uk
|
.org
|
. os
|
.club
|
Different
levels of domain names
Different levels of domain names
include
1 top-level domain names like .com
.net .info .org .edu
2 country code domain names like .ng
.gh .za
3 second level domain names like .co
.uk
4 third level domain like .sos
.state .oh .name .club .guru .too
Website/domain host providers
There are virtual hundreds of web
host providers, so choosing the right one is important. Some good web hosts are
GoDaddy.com, Wix.com, Namecheap.com, Hostgator.com Register.com, and many
others.
The function of website host
companies include website builder, hosting, domain packing, website designs,
templates, domain search tools and registering domain names on your behalf.
Buying
Domain Names
Image: Buying Domain names
I
need to buy a Domain name
A woman thinking of buying a domain
name
Buying
a domain name
New players in the domain name
business have three options when looking to buy a domain name. You can either
search for brand new unregistered domain names using a domain search tool to
choose a domain name you like. You can play with words to formulate new domain
names that are search engine friendly and buy for as low as $0.99
You can buy a registered domain name
from a domain market place like flippa.com, sedo.com, or GoDaddy.com. Many
registers have market places where you can bid and purchase a domain name of
your choice.
Therefore, the first step in trading
domain names is finding the domain name you are interested in buying and
registering with a host provider.
GoDaddy.com is a good starting place
because their services are much cheaper than many host providers. You can purchase
your domain name using GoDaddy.com search tool or register to trade in their
market place for a small sum.
When you buy a domain name, it gets
a designated postal address, contact information of official registrar and
owner of the domain name.
Godaddy.com web hosts
parked domain names
Hosting
a domain name
During the process of buying a
domain name and the administrative documentation is completed, the web host
charges an annual fee to hosts the domain on their server. The web hosts
service includes registration of the domain name, hosting the domain name or
packing it when not in use.
The host provider manages the name
server of a domain name and collects fees and contact information from
registered users. Hosts that provide free hosting for domain names usual place
advertisement on the property to recoup their administrative costs.
Packed or Not
Not all domain names become websites
some are packed free or at a low cost. Some host providers like sedo.com share
a percentage of advertisement earnings with the owner of a packed domain. The
more search-friendly a domain name the higher value the domain name has because
of the advertisement and traffic potential.
How
to sell a Domain name (GoDaddy auction)
Selling
your Domain Name for Profit
If you want to start flipping,
domain names quickly buy old or expired domain names. Old domain names attract
better prices because of their age, traffic sources, and back links. You can
buy them at auctions through bids but be careful so you get them at a
reasonable price.
All you need to do when selling a
domain name is to list them for sale in market places like sedo.com,
flippa.com, or GoDaddy.com. There are many other market places where you can
sell you domain name.
The sale is done through a bidding process
for certain duration between 1 week and a month. The owner can specify the
duration for the bids and even put a reserve price, which should be met, or no
sales.
If the sale is successful then you
are paid either through Direct Bank Transfer, PayPal or through an Escrow
account.
Transferring the domain name
Transferring the domain name from
your hosted account provider to the new owner is done through the help of your
host provider. Most web host has specific instruction on their websites on how
to transfer the domain name to the new owner.
You can buy a good domain name and
park for a while or improve its profitability before selling. Trading domain
names is highly competitive and lucrative but be careful when trading domain
names.
Step by Step process in Trading Domain Names
1
Signup and Register with a good host
provider it is usually free
2
Search in their market place for a
good domain name or create a new one
3
Buy the domain name and host it with
the host provider
4
If you have bought an old existing
name you can immediately offer it for sale
5
A newly created one needs to grow
and mature before sales.
6
When the auction process is
concluded the host provider remits your earnings to your account.
7
You then transfer the domain name to
the new owner. The host provider will provide support when transferring a
domain name to a new owner.
Domain business is big business but
you need to learn the ropes and trade wisely. To get a feel of all we have
written visit sedo.com and see how they trade domain names.
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