How does a check of $10,000 per day sound to you? Webmaster and marketing extraordinaire Marcus Frind reportedly pulls in $10,000 per day in Google AdSense from his dating website PlentyofFish.com. But that’s chump change compared to the $100,000 per day that domainer Yun Ye was pulling in before he sold his domain portfolio for about $164M in 2004 and subsequently disappeared under the radar.
When it comes to making a buck on the internet it seems that everyone has a answer, although few of them seem to ever pan out. But if you’re looking to capitalize on one of the most powerful cash earning enterprises on the net that is actually making plenty of people cash, you should check out the domain industry. Although you may not be quite as successful as these two entrepreneurs, it’s never too late to start in the domain aftermarket.
A domainer is someone who earns a profit buying and selling domains. The philosophy is similar to the stock market: buy low and sell high. Here are some tips to get you started on your way to successful domaining.
Domain Buying Strategies
Domaining is a lot like stock investing, the very best in the field have moved beyond basic strategies and have developed their own specific formulas for success. But just as with stocks, to obtain the skills necessary to reach that advanced stage, beginners must first understand the fundamentals of strategic domain investing. In this section we introduce you to five traditional domain buying ideas, and explain a bit about each.
1. Trademark Typo Domains.
One of the original domainer buying strategies was to hunt for any trademarked names that hadn’t yet been purchased, and failing that, to purchase typos of those domains. These trademark typo domains often yielded a lot of type-in traffic, and because e-commerce law hadn’t yet developed to its current state, companies would often buy out these domainers at very inflated prices. But if you’re thinking about getting into trademark typo domaining, the ship has sailed. Current trademark law treats domainers that are seeing lots of traffic from a typo domain, and don’t otherwise have a legitimate business use for owning the name, as illegal trademark diluters. As such, trademark typo domainers typically have to give back the domain to the trademark holder with little or no compensation. Simply stated, avoid the trademark typo strategy altogether.
2. Keyword Typo Domains.
While the trademark typo domain loophole has closed, a very legitimate and ethical domaining technique is pursuing keyword typo domains. Keyword typo domains (e.g., Mortgeges.com) can bring in a good deal of type-in traffic and are often significantly undervalued. While normally these aren’t the type of domains that someone would want to build a high-value company around (though typo domain Voyuer.com went for $112,000 in 2005), smaller individual webmasters are always in the market for targeted type-in traffic, so these sites are often in high demand among small-time domain buyers.