Netvestor: Why is website investing better then domain investing

Sunday, November 4, 2007

Why is website investing better then domain investing

Here is a hint. Imagine domain name as a piece of land. If you grabbed a really good piece of land before the area gets developed, chances are you will be able to sell it for a much larger profit. Same goes for domain names. To make really good money you need to pick domains early and with a hint of an idea what is going to happen. Unfortunately people buy all kind of crappy domain names (land near dumps) because the opportunities are almost all gone. They hope to sell them one day but it just will not happen.

Domain trading sites are full of all kind of domain names that just lie there doing nothing. Occasionally you sell a domain or two and if you are really good you can actually make some profit. For most people domain name trading is like stock trading - you might get lucky but you will eventually loose.

But let me give you an idea what you can do about it. Why let your land just stand next to a dump and do nothing about it? Develop it into a website! People make profit with buying and selling land, but they get really rich (Donald Trump style) by investing in real-estate. Same is with domain names. Secret is to develop it into a mini site, about anything really, learn the necessary marketing techniques and start earning. With relatively little effort you can make a site that will earn you about $10 a month. That will pay for your domain and earn you an extra $110 per year. You can then chose to sell it as a site for 10x or 100x as much as a domain name was worth. Or you can turn your entire portfolio into a money making machine.

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