What To Look For When Investing In Domain Names

There are many things to look for when deciding to invest in domain names. Many domain investors look for domains that can generate revenue in the intern so that they pay off their renewals costs as you wait for the right end user. Generally, domains in competitive industries like real estate, loans, travel, and gambling earn the best in domain parking revenue sharing programs. How will you know if a domain will earn, and if so, how much? A good indicator of a domain's potential parking revenue is to use the overture bid tool (a free tool that let's you type in a keyword and see the maximum amount that advertisers are willing to pay to for it). A term like mp3 may have a 30 cent maximum bid, while a term like home mortgage can have a $10 maximum bid. As you can see, a real estate domain with traffic is likely to earn you a lot more than a mp3 download domain. Although, you have to look at how much traffic a domain is getting and what the click-through rate is (out of all the people that land on the page, how many actually click the ads)

Keywords

A domain with a strong keyword in it is likely to have a better chance of receiving type in traffic or targeted search engine traffic. Terms like "mortgage", "homes", "loans" are a good idea.

Dot Com

Domains with the .com extention have always been preferred, and for a great reason. They generally sell for many times more than their closest counterpart (.net, .org, .biz) and generally receive much more natural traffic (which is what you want) Also, it is generally not a good idea (unless it is a rare and valuable domain) to promote a domain in any other extention than .com This is due to the fact that you will likely lose much of your traffic to people going to the dot com version vs your extention.

Have it make sense, Short and Sweet

Don't buy or register a silly sounding, keyword domains. You will likely not receive any traffic which means no domain parking revenue. A name like LoansCheapestInterestCalculator.com will likely get ZERO TRAFFIC (who would think to type that into there browser. On the other hand, a name like CheapInterestLoans.com is likely to receive a decent amount of traffic. Since it is a decent sounding, prime keyword domain, even a low amount of traffic may generate $40-50 per month (a decent amount if you got the domain for a good price)
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