Why Domains Names are a Great Investment.

A Domain Name is a name that one registers and then points to their web site like 'guyhosting.com' so people surfing the Internet can find their site.
What makes Domain Names a great investment is that there can only be one Guyhosting.com. Bank of America paid 3 million dollars for loans.com, because thousands of people type in loans into their browsers and most browsers will try loans.com first. The person who owned loans.com before Bank of America probably paid $70.00 to register that name.

The price to register a Domain Name has gone down since then. You can now register a Domain Name for around $10.00. The registering of Domain Names have become a great source of income for many people. But first lets discuss what needs to be considered when buying a Domain Name.

Natural Traffic

Search Engine Friendliness

Branding

Desirability

First lets start with "Natural Traffic". Natural traffic is traffic that is derived from people just typing the name into the browser with out any help from search engines or advertising. A good example is loans.com. Many people looking for loan information will type loans, or even loans.com into the browser just to see if this will render them a Web Site that will answer their questions with out any searching.

Other examples of natural traffic would be cars.com, homes.com, hotel.com-- Most of these Natural Traffic names have already been taken. But if you should find one income is just about guaranteed. How to generate income from Domain Names will be discussed later.

Now lets discuss "Search Engine Friendliness". Search Engine Friendly Domain Names are names that help in the ranking of your site in the search engines. For example if your site is about "Mexican Hats" then mexicanhats.com would be a search engine friendly Domain Name. When someone typed into a search engine Mexican Hats -- Mexican Hats would be considered "Key Words" -- the search engines would look for sites that contained the key words mexican hats. A site with a Domain Name mexicanhats.com would be given greater importance because of its Domain Name by many search engines. An other example would be mexican-hats.com .

Lets look at "Branding". Branding means that when you think of something, that name comes to mind. For example when you think of hamburgers, McDonalds comes to mind. It's a name that you want people to associate with a product or object. Like the word Sony, when people think of online games Sony may come to mind. When choosing a Domain Name for branding, you want a name that will stand out, people will easily remember and associate with your product. For example guyhosting.com.

Last but not least "Desirability". These are Domain Names that esthetic value. Names like whitehouse.com, bob.com, baby.com. Most of these names like natural traffic name have already been taken. The difference with Desirability is that new names are created every day. Like when a new movie comes out or a new actor or model comes into the star light. So you need to keep your eyes on these types of Domain Names because they also can mean great profit.

How to make money with your Domain Name?

Parking your Domain Name with a site that will pay you for the traffic it brings in. This requires very little understanding of how the Internet works. You buy your Domain Name and point it to a web site like sedo.com and they pay you for the traffic you give them, via your Domain Name, that clicks on advertising links. A friend of mine has moviesdownload.com, he's earning over $1500.00/month from that name alone.

Develop small info Web Sites and put adds on it offered by Google, Yahoo, and many other Search Engines. There are thousands of people that are earning incredible incomes off of these sites.

Sell your Domain Names. Good Domain Names are becoming harder and harder to find. Many people just decide to buy a Domain Name that has already been registered, sometime for huge amounts of money. Loans.com was sold for $3,000,000.00 Dollars. There are many Web Sites that deal in the buying and selling of Domain Names.

When registering a Domain Name take into account all four of the above mentioned factors that give value to a Domain Name, and you too can be earning a good income off of your Domain Names.

Good Luck

Written by IG copyright © 2005 6pie.com