Domains for Dummies - Why domain names are valuable and how to profit from them

Because memorable domain names are useful as brands, the unused name Vodka.com recently sold for $3 million. Did that get your attention?

It should because, if you got there first, you could have registered sole rights to that name for under $5. And you could have done so online in seconds, with just a credit card at an easy to use on-line store like this (click me).

Other historic high value names include
Sex.com-$12 million; Diamond.com-$7.5 million; Beer.com-$7 million. These prices include nothing for a business or website - just the name.

Domain Names are convenient because it is a quirk of the human brain that we can remember names much more easily than numbers. Memorability is valuable to advertisers and highly prized by them as a key element in creation of "brands".

A brand is an association that has built up in the public mind (typically but not exclusively from advertising) - linking a product or organisation or activity with a memorable phrase, label or icon. An icon can be graphic, textual or audio.

Churchill's V-sign was a brand - a simple hand gesture (inherited from the English archers at the battle of Cressey) conveyed a powerful idea of indomitable refusal to be beaten, a certainty of victory whatever the odds.

Brands make products and services easier to sell because they convey a sense of familiarity and security in a chaotic world - where not everyone is your friend and the expectations encouraged by a pretty label are not always fulfilled by the bland contents of an underfilled container.

Which is why on a road trip we choose overnight lodging from motel chains we recognize and meals/snacks/beverages from franchises we recognize - at least you know what you are going to get. Who wants to risk the "Bates Motel"? Or "Fred's (bottomless cholesterol) Diner?

A brand name typically enables the vendor of a branded product to command twice or more times the price of an equivalent unbranded product. So brands have real cash value.

If you need proof - just ask Nike; Starbucks; Virgin; Budweiser; Coca Cola; Gordons and Schweppes; Heinz; Kellog; Hertz; Marlboro; McDonalds; Mercedes; Wrigley; Chanel; Dior; Armani; Manchester United and Apple. They spend zillions creating and defending their brand names. And for good reason.

1) Established and efficient registrar offers .COM domains $4,95 first year special with renewal costing $9,95 pa thereafter. Free WHOIS privacy (nominee service to stop spammers).
Free or inexpensive paid hosting also available; also optional dedicated IP.

For full details - Click Here

2) My personal favourite - costs $9,95 p.a. for .COM domain and renews at the same fixed rate. Fast, reliable service from a top 10 global registrar. Free WHOIS privacy option; and advanced DNS capabilities.
Fast, scalable, globally distributed hosting and dedicated IP also available at very reasonable cost.

No ifs, buts, gimmicks or fancy conditions - just simply the best all round quality deal in town.

Contact the author at domains@4mostip.com for details - quantity discounts available for serious domainers.

Domain names can contain key words that people enter in equiries to search engines like Google, Yahoo & MSN. Such domains receive uninvited visits from folks who were searching on that keyword.

Traffic is a valuable commodity to internet marketers, so any domain name receiving natural traffic from search engines is valuable property.

The domain name can be used to host a website selling goods and services targeted to the keyword. Alternatively, the traffic can be diverted to other website operators prepared to pay for the privilege.

Second hand domain names often benefit from visits originating from old links, bookmarks and search engine listings created under prior ownership. This kind of residual (legacy) traffic can be surprisingly persistent. Again, this traffic can be monetized by the domain owner directly or it can be resold.

You don't even need a website to profit from residual traffic - in a future article, I'll show you how I make regular income from investment in "parked domains". This is a little known activity which is attracting some very big investors.

In future articles, we discuss :

how you can profit from investing or dealing in second hand domain names

how to get valuable traffic from domain names - even without your own website

factors to consider when choosing a domain name

how to register a new domain name - choosing a registrar

when to consider a second hand domain name and how to buy one

how to choose and implement suitable hosting for your domain

things to consider before opting for "free" hosting

things to consider before opting for "free" domain name registration

and lots more - tell us what interests you most and we'll push it up the list.

PS Can anyone advise me on including surveys in Squidoo lenses? I'd really like to democratize the selection of future article topics.