A good investor can make over 10% profit per year on their initial investment. What if you could turn a 1000% profit on an initial investment. Sound impossible? It can be done and I am going to share with you the 5 simple steps that professional domain name investor use to turn a $10 domain name into a $100 of profit year after year.
Before I get started take a look at the table below so you can get an idea of what happens when you scale one profitable domain name into many.
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You can see from the table above that building a domain portfolio of profitable domains can significantly improve your yearly income. Let’s jump into the fun of domaining.
Find Expired Domains with Web Traffic
The most important part of becoming a profitable domain name investor is finding quality unowned domain names that receive traffic. Historically this has not been easy to do. Many domain name investors would try and predict how much traffic an expired domain name is getting and in doing so would buy hundreds of worthless domains.
Another method domain investors would use is to buy brand names with typos in the domain. Example: Instead of buying amazon.com which isn’t available and is a billion dollar brand domain investors would buy misspellings of the domain like amazun.com, amzon.com, amazen.com in the hopes of filtering all typo traffic through their misspelled domain so that they could make money through the amazon affiliate network. This is referred to as cybersquatting and is illegal and I would highly recommend not doing this. You can get yourself into trouble so stay away from buying domain names that are related to popular brand names unless you have permission to do so.
Luckily there is a newer and much easier way to finding domain names that receive traffic on a daily bases that can be turned into cash. These domain names are mostly expired domains that previous owners had websites, blogs or other web specific content on. For whatever reason the previous owner worked hard to develop a site that generated traffic then either abandoned the domain name or forgot to renew it. These expired and abandoned domains are the domains we buy since we know they have good targeted web traffic. The work has already been done and we are taking advantage of the lost web traffic by purchasing the domain and sending the traffic to a new site that will generate profit for you and me.
How to Find Expired Domains with Web Traffic
For years I have known about this type of domain investing however I struggled in finding domains to buy that had a good amount of traffic. In most cases I was guessing on how much traffic the expired domain was generating and taking a lot of risks in buying each domain name. In the end I would find a couple of profitable domain names but in most cases I would have to let the domains expire after a year loosing money on those purchases.
After years of frustration and research I decided to build a tool that does the work for me. I have been in the web business for over 16 years and have made a living on finding ways to make money online. I specialize in web design and development so I started to build a database of unowned domain names that still receives online traffic. The database shows me exactly how many expected daily clicks a domain name receives and is updated on a weekly bases. I now use this tool to find every domain name I buy!
Using Domain Notebook to find Good Domains
Here is a screenshot of the Domain Notebook results page of the search term “stock”. You can see how many views each domain is expected to receive on a daily bases. You can also see if that amount of traffic is expected to go up or down by looking at the score. Below you will find important guidelines I follow when searching for a good domain and deciding whether to purchase the domain or not based on the search results.
Guidelines I follow to decide to purchase a domain name:
- When searching a domain there are certain niches that are more profitable then others. Here is a list of top level niches I have had success with.
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- Find domains that have words in them and are not gibberish. Example I would consider buying bestshophome.com, but I would not consider buying tthomefirre.com. Buying a domain that has English words in it will help you get type in traffic versus a domain with gibberish in it. Also I have noticed domains with real english words perform better then domains with gibberish.
- After you find a domain name that you are interested in investing in make sure to check the domain history. I go to Domain Tools Who Is and view any previous screenshots of the domain I want to purchase. I check for two main points:
- The screenshots show previously developed websites and not hosting pages or parking pages. This tells me there was an actual site developed on the domain name.
- The screenshots show webpages that are in English. I want to make sure the traffic going to the domain is English speaking which is much easier to monetize.
Once you have found a domain you are interested in buying then its time to make the investment.
Buying a Domain Name
Once you have decided on a domain name it is now time to buy it. I buy all of my domains on Godaddy.com however there are many other options. Here are a view top registrars.
Tip: Google a coupon for the service you are using to buy the domain you can get a huge discount. Example “Godaddy Coupons”.
Domain Parking – Turning the Domain Name into a Profit
Now that you are the proud owner of a brand new domain name it is time to turn your investment into a profit. To do so we are going to Park your domain name.
The idea of domain parking is pretty simple. Ads, which match your domain name, are displayed on your domain. You will earn money from the domain-parking host every time a visitor clicks on any of the advertisements.
Domain Parking is Free and there are some great services to choose from. All domain names are different so I will first park my domain at Voodoo which has been the most profitable for me. Then if I don’t see any revenue from the domain after a couple of months I will move it to a different Domain Parking Company. Here is a list of Domain Parking options.
Once you sign up and add your domain to the Domain Parking Service you will have to either forward or update the DNS of the domain to point to the Domain Parking Service. Typically instructions for this can be found at the specific domain parking service.
Analyzing Results – Rinse and Repeat
Now it is time to see how well your domain name is doing. After a month or two check the Domain Parking host to see how profitable your domain is. If you haven’t generated any revenue or very little revenue then I suggest you try testing a different Domain Parking host for that domain.
Before the domain name expires/renews, take a look at the domain name to determine if you are going to keep it or let it expire. If the domain name doesn’t earn back a profit then try auctioning it off as a “domain with traffic” on sites such as flippa.com, godaddy.com, sedo.com, namecheap.com. and elsewhere. I typically sell my domains through Godaddy and Sedo however that is more personal preference from being familiar with the two sites. Price the domain for at least what you paid for it or maybe a little more to cover the cost of any domains that you can’t sell.
If the domain doesn’t make any money through parking or the domain auction then let it expire and cut your loses.
If the domain is profitable then renew it and repeat steps 2 through 5 in finding new domains to invest in.
That’s it – once you have finished the 5 steps you will officially become a domain name investor.
Quick Overview of the 5 steps to becoming a Domain Investor
- Join Domain Notebook and become a member
- Use Domain Notebook to find unowned expired domain names
- Purchase a domain name from your search results
- Park your domain name at one of the domain parking sites you choose
- Analyze results and repeat steps 2 through 5
Domain Notebook has taken care to ensure that earning claims from our site are fair and accurate. There are no guarantees that you will earn a profit as an online domains from the views, techniques, or advice given on this web site. Each individual’s results will vary.
Examples given in Domain Notebook are not meant to be a promise or guarantee of earnings. Domain Notebook makes no guarantees of any kind about earnings potential. Earnings potential is based solely on the efforts of the person using our website to find domains, buy them then monetize those domains. This is not a get rich quick scheme.