Domain trading is the buying and selling of domain names and is a business that has been around for many years. It promises a high return on investment, but can be very risky. You can turn $25 into $450 or more in no time and you can buy a domain name without even selling it. It is an interesting terrain to navigate. If you want to make money from this business, you need to get as much information as possible in order to be successful.
One of the benefits of this business is that you only need to register or buy a domain name and not necessarily develop or drive traffic to it. You don’t even need to put any content. You just own the domain, that’s all. You may be wondering where and how to buy domains. You have two options to choose from and you can use both. The first option is to register through registrars and this is known as the primary market. Major registrars include GoDaddy, NameCheap, iPage, 1and1, Dynadot, etc. Registry pricing varies from registrar to registrar and there may be additional products added by each registrar.
The second option is to buy an already registered name and this is known as the secondary market. Examples of secondary markets are Sedo, GoDaddy, Flippa, Afternic, just to mention a few. The price on the secondary market is a bit high and is determined by many factors such as age, category, number or words, name ratings and many other factors. However, it is important to note that a domain is renewable each year and you should factor this into your plan when making buying and selling decisions.
Also, choosing the right domain name is very important to your success in this business. You don’t just buy a name that comes to mind. It does not work like that. This is not gambling and you must be able to identify marketable names. You can visit news sites like TheDomains, Domaining, DomainInvesting, etc., to learn about the latest trends in the market. It’s not easy to predict a name that will sell, but by familiarizing yourself with industry information, you’ll be better positioned to make the right choice. The best names are usually short, easy to remember, easy to spell, easy to pronounce, etc.