Everyday you hear stories about some names getting thousands of dollars from the buyers. You also jump right into the game of domaining and hope for that lucky day to arrive when someone might get interested in your domain name.

There’s gold in web site domain names. You probably saw the headlines when business.com changed hands for $7.5 million. Wine.com went for big bucks, too. And who can forget when AltaVista had to shuck out millions to buy their name from the original owner?

On the other hand, you may have surfed some of the auction sites to find perfectly good domains going for peanuts. Even $25 seemed like a starting bid no one wanted to touch.

So how do you cash in on the domain name trading craze?

to get started

The main problem with newbies over here is that they do very less research and start spending their money on useless names. After 6 months or a year their moral goes down the drain and they are back where they were but with lighter pockets then before.

Some people get into the trademark mess. They get sued by trademark holding company and then they show their temper openly on forums and other message boards.

Some can’t even monetize their domains to get the renewal fees for the upcoming period.

If you have 4 or 5 domains then you can surely shed the amount from your own pocket. But when the figure goes around 100’s and 1000’s it is very hard to renew the domains for the future.

My advice to newbies would be to stick at 25 to 50 domains. They can earn for 10 or 20 renewals per year if your names are below average. Some domain might get you more revenue and it can fill the gap for you. Ultimately the main thing is to not lose a domain for nothing. You should at least get its registration fees from it. This will not start downfall of your domain empire which you want to build. 1 dollar loss is also a big loss if you have more then 100 or 500 domains in your domain portfolio.

So what kind of domains you should buy?

No doubt about it. It is harder these days to find killer domain names that aren’t taken. A recent survey showed that of the 25,000 words we commonly use in the English language, more than 93 percent are already registered as domain names.

Fortunately, language experts have come up with some fresh ideas we can use to uncover hidden gems. First look for short, simple names that instantly tell what your business is about. The dentist who got dentalhelp.com had the right idea.

If you can’t get the one word that describes you, add a prefix or suffix onto it. eDental, DentalX, Dental123 are easy to remember.

Build Value By Building Audience

These days most websites are valued by the number of visitors they attract. One common yard stick is your domain name is valued at $10 to $30 per hit per day. If 1,000 people land on your front page each day, your domain could be worth $10,000 to $30,000.

Another optimistic way of looking at domain values is each unique visitor you get over the course of a month is worth  $250. If the visitor clicks to a second page on your site, her
presence is worth $500. By this measure, a site getting only 10 hits per day could go for $15,000.

This strategy is a lot like the way traditional businesses have always been sold. The more customers a store has, the more it is worth to a buyer. That is a pretty solid way to
value domains. It is a model that is likely to be around for a long time to come.

Build Sales and Brand Awareness

No buyer can resist a domain that is pulling in whopping sales and has a brand name seared into the minds of a profitable target audience.

Generally a domain is worth the amount of sales it creates in a year. If your site pulls down $60,000 this year, you could get that much for your domain name. CPAs, especially
those working with publicly traded corporations, know all kinds of ways to count a myriad of transactions (even affiliate commissions) into cash flow stats.

Find a Domain Broker to sell it

You can visit some big domain brokers such as : sedo.com or buydomains.com . For independent selling, you can post your domain to forum where they talk about website , hosting and domain names.

Goodluck ;0

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