Domains as an Investment Vehicle

domain investingOne of the best online investments you can make is to buy and resell domains.

There are several different ways you can make money using this technique.

The first is to buy domains that have intrinsic value with the name of the domain. Examples of this are domains that use commonly searched phrases, something known as an EMD, or exact match domain. These domains are powerful because it is easy for someone with knowledge of SEO to rank a website for these domains. This allows for the development of a number of niche industries using a variety of EMD keywords.

The second way to make money by investing in domains is to purchase domains that were previously established as websites. These domains can have a number of different metrics associated with them. The most valuable are those of authority and trust, measured by tools such as those provided by moz.com. Basically, the idea is to purchase domains that used to be viable websites and already have some authority associated with them. That will make it easier to rank those domains for keyword terms related to their industry, thus adding value to them.

The investment opportunities exist because the overwhelming majority of website owners are unaware of the inherent value within a domain, and think only of a website’s value. When a website is left to expire, for whatever reason, including the failure of a business, rebranding to a different website, or any number of other potential reasons, the domain is often left to expire, maintaining some of the original value it once had.

This allows you to purchase the domain at a low cost, and resell it to a sophisticated buyer for a profit.

Watch the video below for more information on domain investing basics!

 

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