Domain Names – Parking and Selling Domains
Building a new website, there are a few essential components to watch out for – finding the right domain name, the right hosting plan, and the right website builder for our needs. Our focus today will be on the former – your URL. We will find out more about domain names and how we can monetize from parking and reselling them.
What is a Domain Name?
Every website resides on an IP address, which is usually a string of numbers, something like 220.127.116.11, for example.
But that’s not very easy to remember, is it?
A domain name is the textual representation of an IP Address. This way, the user can still specify what web page they are looking to view, but in a more comprehensive way. In the above example, the IP 18.104.22.168 corresponds to Yahoo.com, a website we have all heard and remember.
A domain name is a unique address that corresponds to a specific page on the internet. It’s what you see in the address bar of your browser, right after the World Wide Web (WWW) part.
How to Choose a Domain Name
Ultimate, the name of your website depends entirely on your ideas and preferences. You will probably look to build your entire brand around it, so you better be careful when choosing your first domain.
Here are a few tips that can generally help with the process:
- DotCom is always king – there are hundreds of domain extensions available today, but .com is still dominating the market. Three letters that inspire trust and reliability.
- Keep it simple and memorable – a domain should be simple enough so you can convey it in verbal speech.
- Avoid numbers and hyphens – while not necessarily wrong, extra symbols can easily ruin the memorability of a domain.
- Aim to be unique – this is the future name of your brand, so you better make it count.
- Reserve other extensions – getting different versions of the same domain allows you to expand on various markets and avoid cybersquatters.
At the end of the day, as long as you like your chosen domain name – you can make it work.
Among all other benefits, though, domains can bring unexpected financial profits.
Making Money With Domain Reselling
Domain names, along with web hosting and a site builder, are all integral parts of starting a website.
But what if you are not looking to build one?
What if you can just register high-potential domains and then sell them to an interested party?
This is exactly what domain reselling is all about.
Gone are the days when you could find a 4-5 letter URL to use for your website. Cool-sounding names seem to have all been registered by now as well. Early adopters have foreseen the opportunities of the evergrowing internet fad and were quick to reserve the rights on what could be very lucrative website names.
And, if you are wondering if domain reselling can be a profitable business, just look at its top deals:
- CarInsurance.com – $49.7 million
- VacationRentals – $35 million
- Internet.com – $18 million
The best thing is every individual or company can choose to become a domain reseller. There are no specific conditions for entering the business – you only need a domain reselling account with a reliable host and can start building your portfolio. Additionally, you can become an ICANN-accredited registrar, but that will raise your costs significantly.
Making Money With Domain Parking
Similar to reselling, domain parking involves registering URLs that you plan to sell at a later stage. The problem with just reselling is that you never know when you’ll find the right buyer and agree on the right price.
But what if you could make money in the meantime?
Parking a domain allows you to set up a landing page and allow ads on that site. Even as the URL sits inactive, it will still accumulate ad profits. The better the domain – the more dividends it can bring you in the long run.
Advertising on parked domains tends to be contextual, meaning the ads are specific to the domain niche. This is important as it attracts targeted visitors who are more likely to convert into paying customers. The registered domain owner gets paid according to how many clicks have been tallied per advertisement, often as much as $5-8 per click.
Now that you’ve learned the importance of domain names and the tips for registering the best ones, you can safely consider monetizing from the global trend. Whether you choose domain parking or domain reselling – new markets await your arrival.
Q: Does domain parking make money?
A: Domain parking can be very profitable if you play your cards right. Similar to affiliate marketing, you have to pick the right niche and display relevant ads, so users can find value from the page. With the help of those advertisements, you are securing an extra revenue flow from an otherwise inactive domain.
Q: How do I park my domain name for free?
A: Many hosting providers include domain parking as part of their offerings. But there are some free marketplaces dedicated to this purpose alone. Websites like Sedo, Bodis, and NameSilo are a good place to start.
Q: How much is a good domain name worth?
A: As with many other products and services, domain names can be as profitable as you can make them. The average domains are available for registration at around $10-15/year, but short and memorable names can easily hit 4-5 digit numbers. Focusing on a specific niche will increase your chances of finding targeted leads.