Buying domain names and selling them for a profit is a good way to earn income online. Domain or website names simply refer to the addresses of websites on the internet. www.naijaecash.com is the Domain or website address for this site you are viewing.
The business of buying and selling domain requires a very small start-up capital. You can start with as low as $10. That means any Nigerian Entreprenuer doing business online can easily add Domain Names Trading to his/her online business portfolio. GoDaddy.com is currently offering domain names at a ridiculous price of $1.99!
See below some domain names that were purchased at less than $10 but sold for tens of thousand dollars.
- Offer.com $180,000
- Porn.mobi $110,000
- AutoClassifieds.com $110,000
- PinUp.com $35,000
- Penitence.com $30,000
- Faithful.com $29,500
- You can get more of this by visiting DNJournal
Do not make 5 or 6 digit price per name your goal, such cases are quite rare. You can still earn good income with names at 3 digit prices (selling a name purchased at $10 for $500 is good enough, even that does not come easy).
Some pitfalls to avoid when trading in Domain Names
- Do not start your domain name business by purchasing from the secondary market (of course there will be exceptions to the rule sometimes). Avoid offers that are above the prevailing market rate. Currently it is below $10.
- Do not attempt to trade on names that have copyright or patent/trademark attached to them. Such attempt is called cybersquarting. Cybersquarting simply put is …“registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. The cybersquatter then offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price – Wikipedia”.
- Avoid trading on high profile celebrity names. Such names can be taken away from you without a dime paid in return through lawsuits.
Tips on choosing profitable domain names
- Choose names that consist of general words such as home.com, computer.com, can fetch good income because so many online entrepreneurs will love to buy them. Such names attracts good prices.
- Choose short names that are abbreviation of longer words e.g. cbn.com is better than ChristianBookshopNigeria.com . (this is mostly targeted at corporate entities) They are usually priced higher than longer words.
- Choose domain names that are catchy and memorable, that is, visitors to such sites will easily remembered them (who will forget faithful dot com?). Consider your buyers and aim for names with widest appeal, that is what enhance profit in domain name business.
- As much as possible, go for domain names ending with .com They are more popular and as such more profitable.
- Make it a habit to visit websites that are selling domain names. The list of possible domain names is inexhaustible. A good place to start from is www.sedo.com Registeration is free.
- If you coin a domain name that you think is catchy and memorable, register it immediately. If you fail, another person might register it before you.