Online Outsource From Domain Trader

Most people think that making money online involves selling a product or service via a website. But there’s another way to make money 24/7 from anywhere in the world, even while you’re working your day job. It’s called “domaining,” and it’s a legitimate, highly effective internet-based investment strategy.

To understand how this money-making strategy works, let’s first define what a domain actually is. A domain is the proper name for a web address. It doesn’t refer to the content; instead, it refers to the name. When you think of onlineoutsource.com, you may think of all of the blog posts I’ve shared over the years. But the domain itself is simply the name, onlineoutsource.com.

So what does this have to do with making money online? In a nutshell, domaining is the practice of buying promising and popular domains, monetizing them, and then selling or “flipping” them for a profit, just as you would do when trading on the stock market.
Of course, just like when trading stock, not every domain will be profitable. Protrada identifies three reasons that domains become profitable:

  • Something about the domain name itself is desirable. These are often short, generic terms, such as sex.com (which sold for $13 million), fund.com (which sold for just shy of $10 million), or toys.com (which sold for $5.1 million).
  • You take the time to make the domain profitable. For example, you might develop a domain into a must-read blog or develop a web store that sells a variety of products.
  • The domain capitalizes on a trend. Think about what’s happened in the past few years with tablets and mobile marketing. Domain names related to these trends may not have been valuable a few years ago, but they are now.

You can earn money by buying a domain and creating a website around it, just like what I teach you to do at the Ultimate Internet Boot Camp. Or you can buy the domain with the intent of re-selling it, just like real estate investors buy properties with the intent of re-selling them for a profit.

While some domains have sold for multiple millions of dollars, they are the exception. But if you do it correctly, it’s possible to make thousands or hundred of thousands of dollars from a properly managed domain portfolio. The key word is portfolio. Getting lucky with one or two big domain sales is rare; it’s far better and more predictable to approach domaining as a business model.

If you’re interested in domain trading as business model, one of the most important things to know is how to evaluate the quality of a domain. The domain trading and monetization experts at Protrada recommend looking at 8 key characteristics.

1. Does it have the right domain extension? The domain extension (also called the “top level domain” or TLD) is what appears after the “dot” — .com, .org, .biz and so on.

A .com domain name is the most valuable. The reason is that people tend to default to the .com version of domain names when they don’t know for sure which URL to enter. Websites that have TLDs other than .com lose an average of 10 percent of their traffic to .com defaults.
2. Does it contain relevant keywords? Domains that consist of exact-match keywords are valuable because Google gives such pages a ranking advantage. They also are easier to remember than other domain names.
3. Is the niche popular? Choose domain names that target niches with popular appeal. There’s probably a small, but rabid, group of fans who love Tibetan Mastiffs, but a domain name targeting that niche won’t be as popular as one that targets all pet lovers.
4. What’s selling? Just like certain types of homes go in and out of vogue, demand for certain types of domain names will wax and wane. As Protrada notes on its website, “Recent sales can give you a good estimate on the value of a domain. Much like the real estate business, it can be beneficial to find out the selling price of comparable items.”
5. Does it have existing traffic or revenue? If you don’t want to get into the business of flipping domains, look for sites with existing revenue streams. You can buy and hold these domains, focusing your attention on increasing their content and value, just like some real estate investors will buy and hold rental properties to enjoy to cash flow.
6. When was it registered? This factor is key when it comes to Google and other search engines. Because new websites are created each day and many expire within a month, new domains are slightly penalized when it comes to search engine rankings. Newer domains are less valuable than older domains, no matter how well-optimized they are.
7. Does it capitalize on an emerging trend? Hot trends can skyrocket the value of domains quickly. Developing technologies are a great example. Be wary though. Like short-term stock trading, the rewards may be exciting and fast, but the risks are high. Bad timing could mean that you end up buying at a peak price and watching your domain lose value.
8. Does it contain a typo? “Typo” domains get traffic because people misspell or accidentally mistype a word. You want to avoid typo domains for trademarked terms unless you like to fight legal battles you can’t win. Typo domains for generic terms can be valuable. For example, the owner of accommodation.com might think that the typo domain of accommodation.com is valuable enough to buy from you.

Systematize Your Business. Once you find a model that works for you, create systems and processes for everything you do. As your business grows, this will help you delegate the many tasks you perform to other members of your team.

Documenting your systems and processes also will provide a valuable road map to your heirs. They’ll receive a turnkey business, and you’ll ensure that they won’t lose the value of your investments simply because they don’t know how to make them prosper