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Domain name investing is currently a booming industry and a lot of people are making surprising returns on their investments. But before you jump in to this business you should do a little research. Domain name forums are filled with stories of people who spent their life saving investing in domain names only to lose every dollar they invested. These should help you out to get started in the domain business. 1. Buy slowly. It is very common for beginners to pour thousands of dollars into their first bundle of domain names only to find that they have hundreds of junk names. It takes time to learn exactly what people want, what they will actually buy, and what prices they will pay. Resist the temptation to buy all your domains at once. 2. Visit the Forums. The best way to learn the business of domains is to frequent domain forums such as DigitalPoint, DNForum, NamePros, and DomainState. Start participating in the discussions because when it comes time to start selling your domains, you don’t want your profile to show only a few posts–a sure sign of a beginner. 3. Know the Market. Although there are some domains that sell for huge amounts of money, most domains will only make you less than a hundred dollars profit. It is important to watch the domain name forums to see not only what people are selling, but which domains are actually making the money. 4. Know the Types. There are many different types of domains. There are single-word .com domains that bring in large amounts of type-in traffic. There are type domains that leech of the traffic of bigger web sites. There are two- and three-word domains that rank well in search engines for specific terms. There are unique, brandable names that would be good for a new startup. Of course, there are the extremely rare 2, 3, and 4-letter .com domain names that fetch premium prices. Some types of domains you can turn around quickly, some will take years but might return larger profits. Be very careful about investing too much money in low-demand domain extensions such as .biz, .name, and .info. 5. Be Creative. Although so many good names have already been taken, you would be surprised that a little creativity can bring you that golden domain that will make you rich. Try the bulk domain checker at http://reg2.us/bulk to check large numbers of domains all at once. 6. Set a Budget. As you begin buying your domains, be careful to set a budget and remember that in exactly one year you will have to renew those domains. For that reason it might be better to purchase a fixed number of domains a month so you aren’t hit with a bill for thousands of dollars twelve months later. Plan your purchases and watch for special deals. 7. Watch for Scammers. The domain industry is full of fraudsters, scammers, and other criminals. Most domainers have fallen for a scam or two. This is a free-for-all market so be very suspicious of everyone who contacts you. 8. Avoid Trash Names. Although there are many great domains that break the rules for a good name, the general consensus for investors is to avoid hyphens and numbers. 9. Research the Names. Just because a domain name consists of a single word or some variant of that, it doesn’t make it a good name. Check the search engines to see how many times that word appears and ask yourself if you would ever build a serious web site with that name. 10. Avoid Trademarks. Domain names based on trademarks, even if they are a misspelling, will cause you nothing but trouble. Most of the time you will have the domain taken away or you might even face a lawsuit. 11. Be Honest. The best thing you could do for your business is to deal honestly with others and leave good feedback for those who are honest with you. Domaining isn’t a way to get rich quick and don’t think that you can pull sleazy tricks to make it rich. The best strategy is simple honesty.
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