The letters to avoid

There are some letters which affect greatly the value of a domain name, especially if the domain is short and has no specific meaning. Some of the most hated letters are the following:

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A new domain extension

The Dominican Republic has decided to open up its domain name extension: .DO . Since the 10th of December 2009, this extension is open to …

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You want more money ? Develop the domain

Usually domain parking brings only a very low amount of money every month. If you are lucky, this amount may cover the registration fee, but this is not always the case.
You then have a decision to make:

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Are Trademark Typo Domains a good idea ?

trademarks.gifWith the amount of traffic that is generated everyday from people missepelling common brands, it may be tempting to register lots of domains containing words such as startbucks, macdonad or micosoft.
While this strategy used to prove successful when domain names first became popular back in the 1990s, this is now a very dangerous business.

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How to estimate traffic

Apart from the revenue, the most important figure related to a domain name is the traffic it gets. Sometimes you just want a rough idea of the traffic of a site to decide whether the domain could be a good buy.

There are a few basic tools which can give you an indication of the traffic:

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The right tool for the job

When looking to invest in domains, you have to identify keywords which are searched online. Those keywords can then be expanded into domain names.
For instance, if I want to create a portfolio of car related domains, I may look for car.com, usedcar.com, cardealer.com, buycar.com, etc…

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Have you defined a strategy ?

Each and any domain name can be worth something. Also, over time, the domains will be worth more as the scarcity will increase: there are more and more people online everyday and less and less available domains.

There are probably two main strategies for you to profit from this increase in value:

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Any combination of letters can be worth something

All domain names have potential. Any domain can, at some point, mean something to someone. And that someone may be willing to pay lots of money for it.
A good example are brand names: everyday new businesses are formed and brands created. So a good sounding domain with no meaning may become a brand in the eyes of the marketer of a big company.

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What to sell

Most people believe that you simply need a name and a bit of time to make money when investing in domain names.
This is usually not the best way to make money.

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To sell or not to sell

When you receive an offer for one of your domains, you are likely to make a counter offer in order to get the best possible price. They will reply with another offer and so on.
The hard part is not to make the counter offer, but to decide when to stop talking.

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