domain-name-buyersIn the old times people would ask others for their business address, telephone number and email addresses, but a great addition to this is ‘What’s your (Website Address)URL?’. With the boom of web 2.0, a lot of domain name lengths are becoming extinct (2, 3 and almost 4 characters gone). Buying domain names has now become a big trend amongst internet entrepreneurs which serve different purposes. And to further analyze to what purpose they use it for, it’s best to analyze the buyers:

 

Domain Name Buyers could be classified in two ways, Non-Profit and For Profit.

 

 

 

non-profit

 

Non-Profit Domain Name Buyers:

 

 

Charity

Non-profit organizations would fall under this category, their website’s purpose is to raise awareness for a certain cause. An example website for this is WWF .

 

Family / Friends

The reason they buy domains is to connect with Family and Friends, it’s quite an old trend as people use Social Networks and Email to connect. I don’t see much of this online anymore, and those that are online are not updated and some expired.

 

 


forprofit


For-Profit Domain Name Buyers:

 

 

Project Based Buyers

Some Domain Buyers think of a certain project that they want to do and buy the corresponding domain name that relates to their idea. I personally fall under this category, most domain names that I’ve bought has a corresponding website idea that I would like to pursue. Monetizing websites in this category is a bit more complex, some as premium service, advertisements, affiliate marketing etc. Examples are Stimator, 123Finder.

 

 

Pure Monetization

A lot of Domain investors fall under this category, what they do is to buy domain names that they feel or see that has lots of traffic. Domain names under this category are usually misspelled, keyword rich and similar word domain names:

 

Misspelled domain names are the ones that are easily misspelled by typing through our keyboards (for example gogle.com). These are used by Domain Name Buyers to either create a landing page where the user sees a lot of advertisements or to redirect to another website. Profits for this is high, especially when anticipating typing errors.

 

Keyword rich are the ones that are specific to certain keywords, for example MyWebsiteWorth, which relates to the searched topic by the user. These are Domain names that are there to draw certain searches on search engines and guarantees a top result (Page 1 or 2). Profits are also high on this, especially on affiliate marketing as it can be very specific to what the user is searching.

 

 

Investors / Resellers / Rent

Domain Name buyers that are in this category buys a huge number of domain names (some hundreds and some thousands). Their domains are also keyword rich domain names that are specific for each category. They monetize in different ways which are Domain Name Parking, Reselling or Renting:

 

Parking is probably one of the most popular ways of earning money through Domain Names. How it works is by placing a landing page with relevant Advertisements for people to click on. These are done by GoDaddy, Google Adsense Parking and Sedo.

Reselling is another way to profit. By buying Domain names that other people will be interested with or need, and then reselling it at a higher price (Through bidding or thru Offers). For example Sex.com was sold for $12 million. Reselling could be done directly, or through GoDaddy or Sedo.

Renting is one that is new to me. Same with reselling, getting attractive domain names, Domain buyer could rent the domains to others by just pointing to their hosting. Payment are usually done monthly and income is constant. Renting domains can be done in domainsforlet.



Anticipators

This category is similar to Pure Monetization as what they do is they buy domains which they believe will have value in the future. It could be buying a domain name pertaining to an offline company, an upcoming movie, game etc. They then resell the domain name at a very high price to the interested parties.

 


Search Engine Optimization (SEO)
This category of Domain name buyers buy the domains for the sake of Search Engine Optimization. What they do is place contents to keyword rich domains and link the domain name to the domain name that they want to optimize. This way the other Domain Name they have would increase in ranking quicker.

 

 

(Offline) Companies’ Website
The most common domain names that we see online are the ones owned by companies. It could be an pure online company or a offline company. They don’t directly profit from the domain name but as a result of your visit and the value that online presence gives them. By giving certain information:

  • Education on their Products / Services
  • Overview of their company
  • Contact details

For these domain buyers, online presence is a means for them to profit offline. You’ll usually spot them buying Top Level Domains (TLD) for international (for example Bluewaterdayspa) and Non-TLD for localized companies (.ph, .is etc.).

 


E-Commerce Company Websites
Websites that sell online products / services fall into this category. Domain names are similar to Offline companies, where the Domain name is the same as the company name. There are occasional cases where they buy domain names that are specific to what they sell (Better Search Engine Optimization). A great example is A2Hosting and EastBay.com.

 


Personal Bloggers
Domain Names under this category are usually named after the owner (name or nickname), topic or random things. It is one of the most popular ways to earn money online as it doesn’t require much programming knowledge and produces unique contents online. Blogs are monetized by numerous ways, the most popular are Advertising (Personal and 3rd party) and Affiliate Marketing. Examples are my blog (TechFilipino), TechCrunch and JohnChow.

Tell us what you think!