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Domain speculation is defined as the process of judging the value of, buying, selling, and trading domain names. This has become an incredibly profitable industry that complements web hosting during the past couple of years, as individual business owners and companies have realized the continuously expanding opportunity presented by online real estate. Each year, thousands of entrepreneurs and local business owners decide to expand their operations into the World Wide Web to solicit more clients, and in doing so they must purchase at least one domain name. However, the majority of these people eventually purchase between five and 20 domain names on average. By becoming a domain speculator you can take advantage of this exponential growth and begin earning a profit with minimal experience.

Conducting Research

The first step in becoming a domain speculator is to conduct the necessary research, and the simplest and cheapest way to do this is to become a member of various Webmaster/Web hosting forums. These forums not only allow you to gather the pre-existing tips provided by experienced webmasters and domain speculators, they also allow you to interact with these individuals on a personal basis, giving you the ability to receive personalized answers to all of your curiosities. Fortunately, all of the information needed to learn how to judge the value of domain names can be found online for free. Alternatively, if your research endeavors are more time intensive and you would rather not expend the effort to find information from various sources, you could purchase a comprehensive guide or training system to expedite the process.

The Basics of Domain Name Value

There are three main factors to consider when judging the value of a domain name – memorability, profitability, and search engine optimization. First of all, the domain name should be memorable enough that site visitors will be able to accurately describe it to their friends or family, thereby increasing the daily traffic levels through word-of-mouth. In addition, the domain name should preferably pertain to a niche or keyword that is profitable, as these websites tend to sell for a higher price tag. Finally, domain names should contain search engine optimization attributes, such as exact match keywords, which will allow the site to instantly begin generating search engine traffic with minimal effort on behalf of the site owner. Websites that are recently expired and still have backlinks, page rank, and other search engine attributes are considered to be most valuable.

Buying and Selling Domain Names

There are three main ways to begin purchasing domain names – domain auctions, registering domains with registrars, and purchasing recently expired domains. While recently expired domains are usually the most profitable, they also tend to cost more than those that are registered with the registrar. Domain registrars offer popular TLDs (top level domains) such as .com, .org, and.net for only $10 per year of registration. Domain auction sites give you the most diverse selection, and most auctions include not only the domain name, but also attached website that contains pre-developed content and design.