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7 Reasons why Domain Squatting is Such a Big Business

Friday, September 22, 2006

7 Reasons why Domain Squatting is Such a Big Business

Ever since a few prime domain registrations sold for as much as $8 million, domain squatting has become one way of earning big bucks in the cyber world. “Parked domain monetization” has become a career for many individuals.

domain name speculation is like investing in the share market; you could raking in big bucks or make a loss. Most techies consider domain name speculation a way to make a fast buck as it is low investment with a huge profit potential. However, these days registering domains could also lead to your getting embroiled in the entanglement of a law suit.

According to major registrars, the parked domain business nets over $5 - 8 million each year.

1. domain pages can be registered for small sums of money with a full refund if cancelled within 5 days. So, you can select a few names and see what happens.

2. If the “name” is an important one then it could sell for between USD 5000—USD 8 million dollars. If you are lucky you could buy a name that has great demand.

3. While parked you can earn from the web site by running ads and generating traffic. Revenue from text ads is projected to be approximately USD 400-600 million world wide. According to Susquehanna Financial Group it is expected to become a USD 1 billion dollar business by 2007.

4. One can use Google’s Adsense to turn the parked pages into some use.

5. It is important to use the forwarding and redirection service offered by the domain registrar. Only then, will all searches that are related even closely to the name registered by you will be forwarded to your site.

6. Tie up with a suitable affiliate program. Then you will make money by simply redirecting surfers to sites they are aiming for. For example if your site is onlinebooks.com then by setting up an affiliation with a book seller or online library you will benefit greatly.

7. You can at an appropriate time sell the domain name on an auction site. You could either list the names on Ebay.com, Afternic.com, or Ezdomainauction.com or hire a broker to sell the domain for you. One such broker is Greatdomains.com. To give you an idea, domains like internetbank.com sold for $92,800 while a1restaurants just sold for $730.

To be successful, you have to create a system. First you must find out on a regular basis which domain names are for sale, which ones have expired, and which names are likely to have a “demand” on the market. Then, you need to register as a merchant on a popular site that has high traffic like Aftenic or eBay and display what you have for sale. High quality domains, you will find, immediately receive bids. All you need to do is keep in mind a suitable price and sell for a profit.

As a “domain investor” you need to know which ones to buy. Assured are names that end with .com or .org. The estimated income if you are clever could be as high as USD 5000- 10,000 each month. However, don’t let the thrill of profit carry you to the deep end. Financial disasters can happen quickly. Invest a little, get back your investment and then reinvest the profit.

domain buying and selling can become addictive just like poker or horseracing.

Be careful!

Andrew Bermam is a freelance writer for http://www.1866Domains.com , the premier REVENUE SHARING discussion forum for Domain Forum including topics on internet domain name registration, domain names, domain transfers, domain registration, domain hosting service providers and more. He also freelances for the premier REVENUE SHARING discussion forum for Domain Site http://www.1888Discuss.com/domain/