In essence the domain industry is the business of selling, buying, developing as well as [...]]]>

The domain name business is one of the most thriving industries online. The industry makes money on buying and/or selling domain names as a product. These days more and more people and firms are getting involved in domain name industry.

In essence the domain industry is the business of selling, buying, developing as well as monetizing Web domain names. The professionals involved in domain name operations are referred to as domainers. Domainers sell, buy, build websites using the domain names and develop them. In domain business, revenue is generated from domain parking, its development and subsequent resale. Some professionals engaged in the domain business prefer the name domain investing to domaining, and domain investor to the domainer.

One can park a domain name with so-called domain parking services. These companies pay the domain owner a certain percentage of the advertising income derived from the ads placed on a webpage displayed to people who visit the domain. The majority of those parking services also feature a sales listing facility that enables you to easily perform a marketing campaign for reselling the domain.

Another option is to create your own parking webpage; you only need a small website to fill it with ads and then reap the 100% of the revenue. However, it may be not as lucrative as using the parking services, as those can usually get a higher traffic flow.

In order to succeed, the website you create should be content-rich. Typically, those small websites are populated with keyword-rich articles and contextual ads the Google Adsense, and are frequently referred to as Adsense Sites. You can develop a fully featured website that would sell products or/and services, as well as paid links and advertisement space.

While going through the stage of site development and promotion, you may also use an opportunity to derive revenue by simply reselling the domain name and/or the website for a price higher than the purchase price. Bear in mind the following factors that add value to the domain/site:

•     Keyword richness and brand-ability of the domain name

•     The volume of natural (unpaid) traffic to the site

•     Current return on investment from the site

•     Existing demand for similar domain names

•     Present search engine ranking

•     The number of backlinks, i.e. sites linking to your website

•     The interest of the specific buyer for the domain

Be aware that there are also numerous ways to lose money on the domains. Among those are

• registering a trademarked as (the whole or even a part of) the domain name
• paying an excessive price for the domain name
• getting scammed via email and
• various kinds of fraud.

While taking those things into account, you can surely make a sound income with domains by thoughtfully creating income streams or maximising the domains resale value.