The business of stocks exchange is fueled by speculation. An investor would speculate on what industry would receive an economic boost. Thereafter, he would purchase some shares from the companies operating in that industry. When the speculated economic boost does happen, the shares he has purchased would skyrocket in value, and he could sell the same for a higher price. This would give him a lot of profit!
The business of buying and selling domain names in the World Wide Web operates under the same principle. And yes indeed, there is a lot of money in this field, more than what anyone could possibly expect!
What Is A Domain Name?
A domain name is a word or phrase which specifies a website on the Internet. It contains numeric and alphabetic characters, and is typed on the address bar of browsers to reach a specific web page.
The URL www.domainname.com , for example, has for its domain name the phrase “domain name”.
Not all domain names are built alike. Some are deemed more effective than others. Here are some characteristics of a good domain name:
* A domain name should be short, so that it would be easy to remember.
* A domain name should be relevant to a particular subject, and such connection could easily be made.
* As much as possible, a domain name should have the “.com” extension as this are believed to be more valuable.
New and unused domain names can be bought for less than ten dollars.
Speculation Is The Name Of The Game
The trick in earning from the trade of domain names is in making an educated speculation on an online industry that would be hot in a few months time. It is important to note that the Internet is called the information superhighway because people generally use the Internet to gather information on a topic that has caught their interest.
If you could predict what people would be widely interested with a few months from now, then you’re in business!
All you have to do is to think of all the possible domain names relevant to such an industry, and invest some money on reserving them for a year or two.
For example, in 2006, the next generation of video game consoles would be released. These include the Xbox 360, the Nintendo Revolution and the Playstation 3. This early, a lot of online businessmen have reserved domain names relevant to these topics, as there would surely come a boom in the demand for information on this subject come next year.
How To Speculate?
Making an educated speculation involves immersing yourself on popular culture. If you enjoy music, TV, movies, books and other forms of mainstream media, you have a better chance of predicting the next popular trends in online information.
The Internet follows consumer behavior in the real world. A sound knowledge of what’s hot in the real world would give you an edge on foreseeing the next hot online properties.
Where To Sell?
There are many channels available for a domain name trader to sell the domain names he has invested on.
The best of these channels is the domain name itself. By redirecting the domain name to a page that would inform the visitor that the said domain name is for sale, you’d be attracting the attention of really interested prospective customers.
Of course, there are other promotional avenues like forums, mailing lists, free and paid classifieds, ads on other websites, article marketing, and similar channels.
If you’re afraid that you’ll not find any buyers for your investment, don’t fret. For as long as the domain name you have purchased is a good one, you will never run out of inquiries. Just make sure to sell at the right time.