My Biggest Misconceptions on Domain Name Investments

in Domain Names Entrepreneurship Tech News by Francis Simisim — July 14, 2009 at 12:00 PM | 0 comments

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I’ve started “really” domaining around April (I’m still considered a newbie compared to others who’re in the industry for years), before my domain names (brandable) were for my web 2.0 idea projects. As I started reading about how domain names were making the news and how it gets traffic, I started really exploring into them. First thing I did was to invest in .PH domain names and right now I’ve invested a few on Top Level Domain Names. This article is about my misconceptions in domain name investing…

You can’t sell a domain name you just registered for a high price

– Think it’s easy being a domainer? –

One thing that I always thought domainers do is that they quickly register hundreds and resell them at a high price a few days later. I was way too wrong on this one, nobody would even take a second look at a new domain name registered without getting much traffic. There are a few lucky ones before, but it doesn’t apply to everyone else (Like when a kid was able to register espanol.com before, the special character n in spanish).

Domain name parking is just a temporary thing

– Can’t earn so much from it –

The normal trend for domainers is to buy a lot of domain names and park them all in a domain name parking service. What I thought was that by parking them I could profit from the domain names that I bought, wrong again! I was only earning $0.02 per click and in a month I was only able to get around $0.28 which is really so small. Domain name parking, I believe, is a temporary place where you place your domain names while you’re developing. It could only become very lucrative if you got a premium TLD (Top Level Domain Names) with a lot of searches.

There’s no easy money in domaining (develop)

– Want easy money? not here –

Which brings me down to this point, that its not easy at all and its not even recommended by a lot of people to do. For one, domain names that are valued highly are domain names that have been developed into minisites or a proper website. They get at least a certain amount of traffic each month and has the potential to grow bigger. Developing is a hard task and it took me around a month and a half to build my first minisite and today it’s taking me around a week and a half.

Earnings for the minisites are not that big either, initially you’d have to be contented with a few cents at first. But it will become more profitable as more searches happen and as it gets better SEO (Search Engine Optimization). The general thing here is more traffic means more revenues.

The Domain Name value in your head, stays in your head

– That golden egg, might be in your eyes only –

The funniest thing that I learned was that anything I register will turn gold, well that did only stayed in my head. We all believe our domain names are worth how many times the price we got it for, but it will only happen once we work on it and build up the website otherwise it will just be another name.

Similar Technology News:

1. Domain Name Investments: Where to place your money
2. Observations with my dotPH investments in .ph and .com.ph domains
3. Domain Name Development: The best thing about developing premium domain names
4. Tips in registering a domain name 2.0 / 3.0 with Domain Registrars
5. Advantages of investing in Domain Names
6. DNtwits: (Real Time) Buy and Sell Domain names thru Twitter

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