Profiting From New Form Of Real Estate - The Domain Names

Registering, buying or selling of internet domainGeneric domain names provide links and ads for the
names has been a big business for about a decadecompanies associated with these names. When
for several people with an estimated value of $2people visit those website, they may click on PPC
billion. This is expected to double by 2010 with 90,000ads. The revenue gets shared between owners and
registrations a day.hosting companies. is a very popular website for
Registration of new domain names with registrarsparking of domain names and PPC revenue sharing.
has been on the rise. According to VeriSign Inc., byThe value of domain names can be directly related to
the end of March 2007, as many as 128 millionthe amount of traffic that a domain generates. For
domain names were registered all over the world,example, names like could generate millions of traffic
representing an increase of about 31 per cent overand justifiably it went for $12 million.
the previous year.The domain name industry is like real estate on the
Some of the prominent internet domain namesinternet. It has grown exponentially over the past 10
transacted last year included for $12 million, for $3years and is still growing fast. A domain name can be
million, for $135,000 etc. Good domains may costheld like a piece of real estate investment. One of
upwards of $100,000. There are thousands of domainthe popular places where auctions of domain names
names being traded at sites like sedo.com, andtake place is Manhattan. This place attracts big
Most of the lucrative domain names in .com, .org, andplayers in the industry.
.net have been taken over. Domains ending at .comOne important precaution that needs to be
have been the most leading amongst the wholeundertaken is that one should not choose a name
category of Top Level Domain Names (TLDs).which corresponds to a trademark name of
There could still be many free domain names fromsomebody.
other categories like .edu, .gov, .net, .info, .biz, .nameThe ICANN is in the process of generating more
etc. However, of all the names dot com names areTLDs. This provides an opportunity for some people
clear winners. One can also be on the look out forto register or buy variations of domain names from
expired or expiring domain names and for buyingthose categories and reselling.
cheap for reselling.It is uncertain as to how far the domain name
The idea behind generic domain names is that peopleindustry will survive. But it looks to continue to thrive
may type them directly in address bar and not infor a long time to come in view of the worldwide
search engines. Once a web page appears, moneyexpansion of internet and desire of people to make a
can be made by pay per click advertising.presence on the net.