Domain Name Investment Guide.

Mostly all domain sellers as well as domain buyers already know that domain names is an online real estate with a high growth rate. In the recent years the growth is very tremendous. It has attracted more investors to venture in this online property, either by direct registration or by winning a bid at after market auctions. This domain article will help you and guide you how to invest on domain properties up to a certain extent.

If you wish to build a domain portfolio either a small one with 100 domains are a larger one with 100's and 100's of domain names. You have to build a good quality portfolio, so that your investment will keep on rolling high. Similar to real estate principle, domain investors have to make wise decisions when they acquire domain names. There are two factors which mainly determines your portfolio quality

1.) Acquire domains which have an appreciable quantity of type-in traffic. High traffic domains are best; you can get your ROI soon from parking income.

2.) Acquire quality domains i.e. short, memorable, extension, brand able.

A high quality premium domain will fetch you a good price in future.

Generally portfolio owners will go on registering domains for an year, in the mean time they will analyze the quality of the portfolio and they will optimize their portfolio either by selling a few domains or left a few with out renewal. This is the general procedure followed.

Earn from Domain Parking

Your portfolio can be made to earn if you park your domains. Even though parking doesn't earn much, it is the laziest way to earn some bucks. On an average a domain name can earn up to 2 $US per year per, if you own a quality portfolio. Parking allows to you to monetize your domain traffic (Type in traffic) by placing targeted ads relevant to your domain keyword. Most of the domains receive very low natural traffic. A keyword optimizer is used by most of the parking companies which allows its users to optimize to get relevant advertisements.

However such parking companies doesn't have their own ad feeds, they get their ads from Meta search engines like google, yahoo, 7search ETC. So they will fetch you with a portion of their income from your domain names mostly up 20-30 % only. Most of the domain sellers won't concentrate much on parking, but the domain parking income can be used to promote a few domains from your portfolio. More over most of the parking companies have an option to place a button like "This domain may be available for sale by its owner"

Domain sellers generally try to develop some domains, and try to sell some domains picked up by some end users from their portfolio, which will fetch them with great money. Even a great sale of single domain will pay their renewals up to 10 years for a big port folio with 1000's of domain names.

Domain name Market Value.

Along with the investment strategy most of the domain owners as well as domain sellers have an aim and goal to sell their domains at great prices. Expectation is appreciated if you own a great domain name. One of the main things you have to consider is the market value of your domain it largely depends on

1.) Natural organic traffic to your domain name is one of the main things that determine the market value.

2.) Of course the domain length, memorable, extension, search engine ranking, registration of other extensions, frequency of appearance at major search engines, domain age also determines the profitable sale of your domain

How do i sell my domains at high prices ? what are the factors that affect domain sale price?

Few domain sellers feel that the domain age will fetch a good price for their domains. But it is true up to certain extent only. If your domain is a strong keyword then aging increases its sale price. If you buy some meaningless domains, even if your domain age is 10+ years it wont serve its purpose and you will not be able to gain, even the invested registration fee. I see several domains sell at very mean prices. even though i am unhappy with such domain sales, i cant stop such sales. Their need is like that.

My humble advise is not to register more domains, think multiple times before you register. First of all think How do you use this domain ? "other than sale" if you have answer for this. Then immediately register that domain. You can sell it. I am sure about this

Did you know why domains are bought for such high prices. They mean it as an online commodity. They can build their business empire on the domain bought from you. so only that online property has high returns. They are ready to pay even in millions to acquire a good domain. They probably need a domain that already make some business and that can give a ROI ( Return on Investment ) with in few years.

If you build your site with quality incoming links, That can bring quality traffic for your site which can be converted in to sales. surely it will fetch you a good price. But if you build too many links which are irrelevant to your specific niche then it will waste the band width, nothing more
Most good domains were registered before 2000 itself. It is very rare to find a nice domain, but if you search you can find. It is like a bank to deposit money. Aged domains will be trusted by all major search engines. So it can fetch you good prices.

Some domain sellers will say don't try to sell your domains with in a year. It will not fetch you good price. It is not true, if your domain is a great one buyers will knock your door step and fill your mail boxes with offers.Be patience, you have the perfect domain name, wait until a domain buyer finds you, just sit back and watch your domain regularly. If you get a nice offer, then sell it. If you receive no offers then you have to do some marketing - sales promotional activity like listing at domain broker site, domain auction sites ETC. additionally paid listings on home page for better exposure to sell your domains. Such promotions can be done after a year, as first you try to sell without spending your pocket money. one final thing is sell your domains in a right way (or) don't sell it at all.

Which domain extension should i choose for my online business ?

Most of us say just register .com, generally you have to choose the extension based on your business. If your business is a network, you can choose .net, If is is a non profit organization you can choose .org, If you wish to provide free or paid info online you can acquire .info. If your business is for a specific country only you can choose country code extensions like .de, .ca, .co.uk, .in, .co.in, .au, .nl, .hx ETC.

If you are a domainer, who purely concentrate on domain sales, and domain name not for any development purpose you can try for .com (or) .net. As domain buyers have a strong belief that .com is the king and .net is the queen in domain business. Now a days co.uk is gets some importance.

Even though the above extensions are considered as valuable, very long domains more than 21 characters are considered for lesser value. few domainers feel domains of 5 - 9 characters are valuable and few may extend it up to 14 chars. If you are able to acquire a commercial one word domain it is nice . Strong two word domains with high commercial impact also have value, but .com or .net preferred.