This is illustrative only and the reader should consult current statistics as required. To give you a scale of the number of TLDs (Top Level Domains), according to the September 2010 Verisign Domain Report:
The second quarter of 2010 closed with a base of more than 196.3 million domain name (DN) registrations across all Top Level Domains (TLDs), an increase of more than 3 million DNs, or 2 percent over the first quarter. Registrations grew by 12.3 million, or 7 percent over the past year.
DN Scalping and Flipping are other terms used to refer to the buy/sell activity. With such a volume of DNs, even a small percentage turnover in DN ownership amounts to a huge opportunity. There are at least two angles to making money with DNs.
1. Choose and buy DNs that will turn out to be winners in the future (a longer-term strategy).
2. Flip DNs (a shorter-term strategy).
Consider the purchase of a DN for $5000. Consider holding it for a few years. Without even developing the property (i.e. no web site), a sell price of $25,000 is a realistic target. That is a net return of 400%. In two years time, the number of sites will grow beyond our imagination. With so many sites coming into existence, DNs will be needed. Holders of DNs will be able to meet the demand, with premium asking prices. The number of domains that you can hold is subject to your available capital.
Consider what might be burgeoning fields in the next few years to pick DNs. Green energy is bound to be amongst the mix. The continuing proliferation of online advertising is another field. Names with sub-phrases such as buy, sell, lawyers, accountants will be hits. And I have not mentioned non-family sensitive topical areas. As more professionals are exiting their fields, through choice or through layoffs, they will be creating web properties in their fields or otherwise.
With web site development to supplement the buy-and-hold strategy, further opportunities may be had. Consider developing an information web site to publicize your DNs. Consider writing about the relevance of the topical areas. Consider putting in advertising to garner advertising revenue. If a DN is sold sooner rather than later, and you are happy with the return, then flip the domains. Fast turnover for lower than expected return is a reasonable tradeoff. Fast turnover for higher than expected return is a bonus.
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