Money Matters - Simplified

Domain Trading: Invest in the Virtual Real Estate

Are you are seeking an additional, effortless income online? – Yes, then Domain Name Trading is perhaps the best online business for you.

Domain trading is not a recent wonder; it has been present for a long time now. Ever since the World Wide Web came into being, traders have been making millions out of domain trading or what is known as domain flipping in their parlance.

The Domain name
Domain name consists of one or more fractions, technically termed as labels that are typically concatenated, and delimited by dots, such as

It represents the address of a website with an extension following a (.) dot. The popular extension labels include Top Level Domains (com, net, org, edu, gov, etc), Lower Level Domain (like in, wikipedia is the second-level domain) and various other internationalized representations like ca, in, etc.

The domain name registration is governed by ICANN, the Internet Committee for Assigned Names and Numbers. It is a non-profit organization that manages the use of Internet domains.

Why go for domain trading
Domain trading is like a virtual real estate business. It can safely be said that a website is the owner’s business home. Whoever has a business, has a website. He can’t afford risking his income by using social blogs for financial communication and advertising. And for his business website, he needs a relevant domain name.

In 1998, Compaq paid US$3.3 million to get its ‘’. It was a record shattering domain name sale then. The Cable News Network (CNN) acquired its ‘’ for $750,000. The domain owner gathered a massive profit for sure.

As the internet is expanding continuously, the availability of desired names for domain registration is shrinking.

The .com annexes has always been the most popular domain choice. Nowadays, a good .com name is difficult to find. The dictionary word names for domains have all been used up. Hence, the domain name trading is getting more and more popular and profitable.

The charm of global domain trading business is that you can invest as much, or as little, as you afford. You can work from the comforts of your sweet home, set your own hours and you can devote time as per your privilege.

How Domain trading works
For trading in domain names, first you have to buy a domain. A domain name with a lifetime validity costs around $10-$20. The popular domain registrars include, and

After registering a domain name, you are free to make a few changes in its settings, if so you desire. However, if you are satisfied with the name of your domain, you need not make any modifications at all.

Finally, you can sell, at a price as inflated as you want, to make maximum profit. For selling your domain, you can join various free domains’ auctioning websites like,,, etc. You can either set a fixed value for your domain, or you can start an auction to catch the highest bid for your domain.

I think the concept of this easy to operate business might have already started fascinating you. So before you start building your domain inventory, it is prudential enough for you to collar up a few basics first.

You ‘will’ need money
Though a domain name merely costs around $10-$15, you will require about US$500 to US$1,000 for building up an inventory of domain names over the next year. The more parked domains, the more profit you are bound to make. Ideally, you should start trading slowly with one or two domain names but replenish your inventory constantly.

Qualitative analysis
Do you love window shopping? To become a successful domain trader, you must do that. Never rush for a domain shopping spree and end up empty wallet. For a start, buy no more than 5 domains a month --no matter how less they cost.

Go for a window shopping, search every auction site, have a look at all the names and select the best out of the best ones. The market will have more potential, better domain coming next month.

Have an open mind, be futuristic
The business is about buying and selling good domain names with a profit. If you buy worthless domain names just because they come easy on your pocket, you are risking your money. If 'Mr. Generous' is selling you a domain for $1, then that means there is no buyer for it. Whom will you sell it to make your profit?

Buy only those names for which you feel a scope of potential buyers. Research well before buying and anticipate the future aspects. Review recent auctions lists to get an idea of market value and buy only at a reasonable price.

Entrepreneurs are always looking for domain names that will induce quality to drag visitors based upon a catchy word or phrase in their Website name.

It is always good to master a specific arena. So start trading with a particular category of domain names. Like deal in only .COMs. It is the ‘in demand’ label and you can expect a quick and easy profit.

The key is to remain watchful, maintain a patient balance between buying and selling and never buy anything with a tentative mind.

Never spend what you can’t afford to lose.
Happy trading.