Domain names are meant for profits when they exactly matches keywords. Yes, statistics says that in 2010 number of active domains reached 196 million. Its sure that 100% of dictionary words are already registered as domain names and even 1-2 keywords in combination’s are all registered.
If you search a keyword as domain names, you could not easily find available domains. What i want to tell here is, domain names have high demand in market.
Interestingly, many of the “famous keyword domains” are sold or even re-sold for millions of dollars. The following example shows the truth about Domain Names !
- Business.com resold for $350 million in July 2007 
- Business.com for $7.5 million in December 1999
- AsSeenOnTv.com for $5.1 million in January 2000
- Altavista.com for $3.3 million in August 1998
- Wine.com for $2.9 million in September 1999
- CreditCards.com for $2.75 million in July 2004
- Autos.com for $2.2 million in December 1999
- Sex.com for $13 million
- Toys.com: Toys ‘R’ Us by auction for $5.1 million in 2009
In future, i predict like even double word domain names will become more demand like this. Many successful entrepreneurs are doing such business. They will simply register domain names which are keywords and later, reselling the domain for higher profits. That’s a simple method, only thing you have to invest money in registering domain names.
Its a long term money making business because the value of domain names definitely goes high year-after-year. This idea of registering such keyword domain names and reselling it later is a “wealth building business” and its termed as “Domain Flipping”.
Even i never tried these kind of business, so i did a bit of research and found few articles which helps you to understand domain flipping better.
- How to Get Started as a Domainer ? 28 Tips, Techniques and Resources
- Maximizing Your Profits From Domain Flipping
Another way of doing it:
Register profitable domain name, build a successful web site around it then sell it for even more profits. One good example i want to mention here is, Chris’s Netbook blog which he sold for six figures ! See it here.
The advantage is that you don’t need to work much, you need money and some knowledge on selecting profitable domain names.
Do you flip domain names ?