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How to Profit from Domain Names

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					          How to Profit from Domain
                   Names
                                              Version 1.0




                                                       Recent domain name sales:
                                                       Diamond.com - $7.5 million
                                                       Beer.com - $7 million
                                                       AsSeenOnTv.com - $5.1 million
                                                       Tom.com - $2.5 million
                                                       Marketingtoday.com - $1.5 million
                                                       SurfWorld.com - $1 million
                                                       Eflowers.com - $1 million




                      From The eCommerceNerd Series of eBooks
                                           eCommerceNerd.com


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How to Profit From Domain Names V1.0        © 2007 eCommerceNerd.com                  Page 1
   What one ingredient most determines your
   results?

   You have the good fortune to be reading, right now, an excellent guide to the
   business of Internet domain names.

   I’ve read many great books, but none made much difference in my life until I really
   took ACTION on what they taught.

   I want to make taking action clear and easy for you. I’ve done this by creating some
   simple action steps that you must follow to move towards being in a position to profit
   from domain names.

   You’ll notice at key points in this report I’ll invite you to ‘click here’. When you click on
   those links, if you’re online, a trusted web page will open, which displays valuable
   resources or guidance. This adds even more value to what’s revealed in this report.




How to Profit From Domain Names V1.0      © 2007 eCommerceNerd.com               Page 2
   Stay informed on the dynamic domain name
   industry

   The Internet changes with lightning speed – whole new business models are created
   every month. So this eBook will be updated to reflect the latest and most valuable
   information for you.

   Ensure that you’re up to date with the latest information. Register at
   eCommerceNerd.com to be notified of new versions of this eBook.

   Take action step 1 and you’ll see a little box like the one below where you can enter
   your email address to be notified of new versions of this eBook.




   Action step 1 – Click here to visit my site and register for free eBook updates. Stay
   informed!




How to Profit From Domain Names V1.0    © 2007 eCommerceNerd.com            Page 3
   How domain names can produce steady,
   ongoing income

   Buying a domain, and hoping someone with deep pockets will offer you a large sum
   for it is no longer the only way people are making money through domains.

   A new industry has grown from the monetisation of domain names through
   contextual pay-per-click (PPC) advertising.

   According to VeriSign, 23% of all .com and .net domains are now single pages
   containing PPC ads.

   These single-page sites serve sponsored links related to the domain name, which,
   when clicked, earn revenue for the domain owner.

   You’d expect that a site with no real content wouldn’t attract many visitors, but in
   some cases they can attract plenty.


   Direct navigation
   Domainers profit from direct navigation. That is, when a person types a domain name
   directly into their browser address bar and adds ‘.com’, assuming that related content
   will appear.

   Around 15% of Internet users are thought to use direct navigation.

   Someone interested in diamonds, for example, might type in a domain name like
   diamond.com. If the page that appears has relevant ads, the prospect may click on
   an ad – causing a small payment for the domain owner.


   How much cash can domains generate?
   A good domain name that draws plenty of page-views can make hundreds of dollars
   of steady cash per day from PPC ads. CellPhones.com is said to make around
   $1,3001 per day in this way. That’s almost half a million per year!

   Direct navigation was worth $800 million in 2006, and could exceed $1.1 billion in
   2007 – according to RBC Capital Markets. I suspect it could be worth even more than
   that.



   Action step 2 – Click here to see a parked page. This will help you visualise how it
   all works.




   1
       Unless stated otherwise, all dollar amounts referred to in this report are US dollar amounts.




How to Profit From Domain Names V1.0              © 2007 eCommerceNerd.com                   Page 4
   What drives domain name values?

   Domain names are Internet real estate. A domain is absolutely unique and can be
   controlled by only one person.

   As Kevin Ham, a Canadian resident who built a $300 million domain name empire
   said in an interview with CNN’s Business 2.0 Magazine:

   “If you control all the domains … then you control the Internet.”
   Uniqueness and popularity are what drive a domain’s value. For example, only one
   person can control the domain name diamond.com. People enjoy, and spend money
   on diamonds. So diamond.com was able to sell recently for $7.5 million!


   How much can a domain fetch?
   There is strong market demand for special domain names. Below is a list of some of
   the top domain name sale prices achieved in recent years.

   Sex.com - $11 million                        Express.com - $1.8 million
   Porn.com - $9.5 million                      Mortgage.com - $1.8 million
   Diamond.com - $7.5 million                   Cameras.com - $1.5 million
   Business.com - $7.5 million                  Fly.com - $1.5 million
   Beer.com - $7 million                        Marketingtoday.com - $1.5 million
   Casino.com - $5.5 million                    Men.com - $1.32 million
   AsSeenOnTv.com - $5.1 million                Feedback.com - $1.23 million
   Korea.com - $5 million                       Phone.com - $1.2 million
   Shop.com - $3.5 million                      Find.com - $1.2 million
   Altavista.com - $3.25 million                Bingo.com - $1.1 million
   Vodka.com - $3 million                       Wallstreet.com - $1 million
   Loans.com - $3 million                       If.com - $1 million
   Wine.com - $2.9 million                      Rock.com - $1 million
   Tom.com - $2.5 million                       SurfWorld.com - $1 million
   Autos.com - $2.2 million                     Sky.com - $1 million
   Coupons.com - $2.2 million                   EFlowers.com - $1 million
   Telephone.com - $2 million                   Whitehousecrisis.com - $1 million


   From the list above, which comprises over $100 million in sales, you’ll start to see the
   value that domain names can have to the shrewd investor.




How to Profit From Domain Names V1.0    © 2007 eCommerceNerd.com              Page 5
   What makes it even more incredible is the fact that the people who originally
   registered the domains above, could have paid just $9 per year to control them.

   Some savvy investors paid significantly more than $9, but got a great return on their
   investment, including:

       •    Marc Ostrofsky who bought Business.com for $150,000. He later sold it for
            $7.5 million – a 5,000% return.
       •    The mystery buyer of Porn.com, which traded in 1997 for a reported $47,000,
            and was recently sold for $9.5 million to MXN Ltd – a 20,213% return.

   I bet those lucky investors would be glad they invested in domains, instead of leaving
   their cash in the bank earning a measly 5%! ☺




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 6
   Who’s profiting wildly from these trends?

   The best evidence something can be done is when others are doing it. It can also
   help to motivate us to get off our lazy butts.

   Yun Ye and Kevin Ham are domainers. They’re pioneers in the highly profitable
   business of domain name trading and PPC monetisation.

   What’s amazing about Ye and Ham, and this kind of business, is that they’ve created
   multi million dollar empires independently, working from home, without the resources
   you’d expect a start-up business to have.


   Yun Ye
   Yun Ye was a software developer by day. After work he developed programs to
   automatically buy domain names. At one point Ye held over 100,000 domain names
   which were earning him more than $20 million per year in revenue ($19 million of
   which was profit).

   In November 2004, Ye sold his cash cow for $164 million to the publicly traded
   search marketing firm Marchex. Some say that after the sale Ye moved to Vancouver.
   Other rumours are that he hasn’t been heard of since.

   Imagine what you could do with that kind of money … $164 million …


   Kevin Ham
   Kevin Ham is a qualified medical doctor from Canada who’s acquired around
   300,000 domains that generate estimated annual revenue of $70 million. His domain
   name empire has been valued at around $300 million.

   Some of Ham’s sites cost him as little as $9 to buy, but bring in several thousands of
   dollars from PPC advertising per year. When you grasp that, you begin to understand
   the kind of money machine Ham has created.

   Lately Ham has been paying big dollars for domains he thinks will generate good
   results for his portfolio. CNN’s Business 2.0 Magazine reported on some of his recent
   purchases, which include:

       •    Greeting.com                $350,000
       •    HotelDeals.com              $171,250
       •    FruitGiftBaskets.com        $26,250
       •    WeddingCatering.com         $10,000




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com           Page 7
   Ways to profitably utilize domain names

   Domain names provide arguably the fastest and cheapest way to gain a foothold in
   the Internet economy. Listed below are the main ways you could generate revenue
   from domain names.


   Trade ‘em
   An investor or trader2 buys domain names to later sell them for a profit. By now you
   realise that such profits can be large.

   These guys and gals can buy a brand new domain name through a registrar, or buy a
   domain name that someone else already controls.


   Amass advertising income
   By placing PPC ads on a web page, visitors to that page can click through any ad
   they’re interested in. When that happens, a small fee is credited to the domain name
   owner.

   People used to have to pay for web hosting. And they’d have to program and set up
   a web page to profit from advertising.

   There’s now a free service that will generate a web page for you, host it for free,
   populate it with automatically updating keyword relevant ads, and pay your for ‘click
   revenue’! I’ll tell you about it later.


   Lease ‘em out
   If a business is interested in your domain name, instead of selling, you might work
   out a deal where you charge it for the right to use your domain. This is akin to being a
   domain name landlord.


   Forward visitors to a money making site
   You can forward visitors automatically to any site you like. You could have 1,000
   domains all forwarding traffic to a money making site at no cost other than the
   domain registration fees.




   2
     The distinction between an investor and a trader is really only the length of time each plans to hold
   the domain name before selling. An investor may plan to hold domains for a year or more, while a
   trader may plan to flip them within a month.


How to Profit From Domain Names V1.0           © 2007 eCommerceNerd.com                    Page 8
   Create your domain list – you might uncover an
   overlooked jewel

   Ideas for great domain names are probably bouncing around in your brain like ping
   pong balls by now.

   This section will help you organise your thoughts so that you can quickly and easily
   determine the high-priority domain names you want to zero in on.

   In this approach you’ll base the domain name on a keyword/s. This is how people
   come up with domain names like SurfWorld.com (which sold for $1 million). This
   method works great to unlock ideas you wouldn’t have thought of otherwise.


   Create your domain name master list
   I’ve developed a Domain Name Master List template which I welcome you to use (or
   you can create your own by following (iii) and (iv) below). To download the template,
   just click on the link above and follow these steps:


   i) Scroll down and click ‘Free’ as circled in the picture below:




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 9
   ii) Scroll down and enter the code given at the site, then click ‘Download’:




   iii) Brainstorm relevant keywords (columns A, B, C)

   Open a Word document and insert a table with 3 to 4 columns. In the first two or
   three columns enter a list of relevant words. You can use any letter or number in a
   domain name. But I suggest basing the domain name on a keyword, name, or brand.

   You can brainstorm based on your knowledge of the topic. Or for more precision,
   there’s a research tool which lists the top relevant keywords for any topic – click here
   to check that out.


   iv) Mix keywords in any order you find appealing (column D)

   In the last column you just copy words from A, B, or C and paste them together to
   form multiple combinations.

   Be creative, and you may hit on a valuable domain name. The key is to combine
   words in different ways, and create a large list of possible domain names.

              A                        B                     C                  D
   Type first word or          Type second word      Type third word   Combine words or
   part here                   or part here          or part here      parts from A,B,C
                                                                       here in any order

   How about obvious names, like surfing.com?
   You should also list and check the obvious keywords or brand names. But, the
   demand is so high that every word in the English language has already been
   registered as a domain name!

   Don’t be discouraged though, because I’ll show you how you may be able to acquire
   that obvious keyword or brand name for your domain a little later.

   Action step 3 – Create your Domain Name Master List to powerfully identify
   domains. Click here to download your free Domain Name Master List template.




How to Profit From Domain Names V1.0       © 2007 eCommerceNerd.com          Page 10
   The fastest way to investigate domains available
   for immediate registration

   Once you’ve done Action step 3, highlight and copy the list of combined keywords
   from the right hand column (column D) of your Domain Name Master List.

   Then click here to use a free tool – that lets you paste the results from your column D
   to check up to 500 domain names at once!

   This is a really powerful time saver. Many of your competitors will still be manually
   checking each single domain name to see if it’s available.


   Action step 4 – Highlight and Copy all the names from your master list’s right hand
   column (D). Click here to freely check up to 500 domain names at once!


   Once you complete Action step 4, you will firstly see a list of the domains you
   checked that are not available. Below them are listed the domains which are
   available for you to register right away if you like.

   If you want to register any of these names, go straight to the area marked in red
   below, enter the ‘access code’ and hit ‘go’. Be aware that if you find a really great
   name, it may not be available tomorrow.




How to Profit From Domain Names V1.0    © 2007 eCommerceNerd.com             Page 11
   A domain you want is unavailable – can you get
   it somehow?

   When you do Action step 4, then see something like:

   ERROR: FROGURT.COM is unavailable and has been removed.

   It means somebody else has already registered this domain name.

   Copy and paste any killer domains which you want to buy (but that are unavailable)
   into a ‘desirable but unavailable’ table in your Domain Name Master List.


   Desirable but unavailable (already registered) domain names




   These names will become candidates for you to consider acquiring later on.

   I’m about to show you two methods to help you acquire these names.


   Action step 5 – Copy and paste any names that you want, but which are
   unavailable, into a ‘desirable but unavailable’ table in your Domain Name Master List.




How to Profit From Domain Names V1.0    © 2007 eCommerceNerd.com          Page 12
   The new Internet gold rush is on, the secret:
   desired name + International postfix

   The gold standard in domain names has been .com. It’s the most popular postfix (or
   domain extension), and has achieved the highest selling prices.

   Other postfixes like .net and .org have also been very popular because these were
   the first postfixes introduced by ICANN, and are easy to register.

   If you register a domain that you’re really serious about, e.g. a brand name, it’s wise
   to register it with several available extensions to protect the brand online.


   The next big thing
   There’s a new gold rush on -- for domains with international postfixes. Some have
   been very hard to register in the past. It’s just now starting to get easier.

   While .coms have set most of the domain sales records, some international postfixes
   are catching up. Take the domain Nav.no – which the Norwegian government
   bought3 for $717,978.

   Internet penetration rates in countries like India and China are massive and growing
   fast. I think it’s natural that most international domain extensions will only become
   more valuable in the future.


   Yes! It’s available!
   You’re likely to find that the domain you really want is already registered as a .com.
   However, it may still be available with a different domain extension.

   The domain you want may be available with an international postfix, like .tv. You can
   register any domain name that you want with any available postfix4.

   To see what domain extensions are available for your preferred domain, click here
   and then follow the mini tutorial below.




   3
     For its welfare administration web site
   4
     Be aware of possible trademark infringement issues, if you register a domain name of a brand which
   is trademark protected.


How to Profit From Domain Names V1.0         © 2007 eCommerceNerd.com                  Page 13
   i) Search on your preferred domain name:




   ii) Next, scroll down to ‘More Options’ and click on ‘International Domains’




   By doing this, you’ll be able to quickly see the international domain extensions
   available for your preferred domain name.

   If there are any that you want, you can register them – be aware that anyone else
   can also register them at any time, so if you find a gem, you may want to snap it up!



   Action step 6 – Click here to see if your desired domain is available with an
   international postfix.




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 14
   How to get a domain name owned by someone
   else – 70% success rate

   I promised to show you two ways by which you may be able to acquire unavailable
   domain names.

   The first is described above. That is, registering the name you want with an
   international postfix.

   I’ll now tell you how to secure a domain name that is already owned by someone
   else …

   There’s a professional Domain Acquisition Service I recommend, whose brokerage
   team can negotiate with a domain name owner on your behalf.

   If successful, they will assist you to buy the domain/s that you want. And they have a
   success rate of over 70%!



   Action step 7 – Click here to learn about a Domain Acquisition Service which can
   negotiate a sale with the domain name owner on your behalf.




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 15
   Generate steady ongoing income from your
   domain names

   I spoke to you earlier about how domains can be used to generate steady, ongoing
   income. Now I’m going to give you the specifics of how you can make it happen.


   Domain name owners
   By now you know the reasons to monetise unused domains – if only to cover the
   registration fee of domains you want to control.

   If you own domain names and you want to earn income through PPC advertising, or
   sell for a profit – I suggest you follow Action step 8.


   Established web site owners
   If you have own a site that ranks well in search engines, or has a lot of incoming links
   you should seriously consider what I’m about to say.

   Many webmasters shell out for hosting fees every month, buy expensive software to
   build sites, and sweat it out til late at night, all just to create content for visitors that
   may never pay out a dime.

   Domain parking with PPC ads is an attractive alternative. Because:

       1. It’s a proven business model – it works
       2. It’s free – it doesn’t cost you anything
       3. It’s easy – it takes only a few minutes to set and forget

   It’s a great way to capitalise on all the hard work you’ve put into establishing a
   domain, and to monetise your search engine rankings and incoming links.

   If you were ever thinking about just shutting a site down, or selling it for peanuts – I
   urge you to consider this option.

   The fact is, you’re likely to earn more money on a per visitor basis with a parked
   page, than many dedicated ecommerce sites do.

   You have nothing to lose by giving it a try. All you need to do is follow Action step 8,
   then forward your domain to the parked page. Try it, even for a month, to see what
   your domain is really worth.

   You can even keep all of the content from your site, and host it at a new domain
   name – so all that hard work is retained – and the new site’s running costs could be
   paid for by your parked page.

   To monetise an established web site’s domain name, I suggest you follow Action
   step 8.




How to Profit From Domain Names V1.0      © 2007 eCommerceNerd.com               Page 16
   Clever investors
   There are web site owners who have a popular site that gets plenty of traffic from
   search engines, direct navigation and inbound links.

   How do you identify these sites? You can start with keyword searches in search
   engines, and consider sites that rank highly, especially those with a ‘Google Page
   Rank’ score of 4 or higher.

   Building and running a site takes two precious commodities – money and time. And I
   can say with confidence that many sites don’t give owners much in return.

   Because of this, some owners of good sites may be prepared to sell their domain for
   what they consider a fair price.

   You don’t really want the content – it’s just the domain name you’re after. To acquire
   these domain names, refer to Action step 7.

   When you buy the domain you get all the benefits of the already established traffic
   from search engines, direct navigation and inbound links.

   It’s likely that you will make more money by taking a site down and replacing it with a
   single parked page than the owner would by continuing to run the site -- especially if
   it’s not a commercial site.

   Buying domains of established sites and parking them is a highly profitable business.
   As you’ve learnt from the example set by Kevin Ham and Yun Ye.

   To monetise an established web site’s domain name, I suggest you follow Action
   step 8.


   Action step 8 – Click here to find out how you can park your domain for free and
   earn more income per visitor than many professional ecommerce sites earn.


   After clicking on the link above – look for a link like the one circled below:




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 17
   More reasons to have your own domain name

   The Internet has a global reach, and attracts millions of new users every year. A
   domain name is your address on the Internet and a valuable part of your online
   identity.

   There are plenty of good reasons to register domains even if profit is not your primary
   motive. In fact, even if you don’t want a web site, you can benefit from owning a
   domain name.


   Get a free, professional looking email address
   Some business people think it unprofessional to use a free email account. I was
   surprised a few years ago to receive a business card from a diplomat with the
   Egyptian Ministry of Foreign Affairs. It was a nice card, embossed with gold foil, but I
   was surprised to see it had a Hotmail email address printed on it.

   If you register a domain name with the registrar recommended at Action step 6 – you
   also get a free 25 megabyte email account5. So you can create a professional
   looking email address, e.g. YourName@YourBusiness.com.


   Get instant brand or image protection
   Your brand (or name) is important to you. Because anyone can register any available
   domain name, it’s wise to secure the ones you want. Even if your brand is trademark
   protected, there’s no mechanism to stop people registering it as a domain name.

   While there may be legal recourse against cybersquatting6, like any legal process it
   can be time consuming and expensive. Just engaging a lawyer to write a ‘cease and
   desist’ letter would cost you around $400.

   Employers scour the Internet for information on job applicants these days. If they
   don’t like what they discover online about someone, they may not consider them for a
   job or promotion.

   Just imagine how angry you would be if someone registered YourName.com and
   used it to set up an objectionable web site!

   The obvious solution is to simply register those domains that are important to you.
   Click here to see if your name or brand is available as a domain name. And you can
   have the comfort that you control your name on the Internet.




   5
     25 megabytes (MB) is a decent size. My email account at a previous job was 10 MB.
   6
     cybersquatting is registering, trafficking in, or using a domain name with bad-faith intent to profit
   from the goodwill of a trademark belonging to someone else.


How to Profit From Domain Names V1.0            © 2007 eCommerceNerd.com                    Page 18
   Preview powerful & recommended domain
   name & Internet business resources



   Action step 9 – Click here for a list of powerful domain and eCommerce related
   resources, as recommended by eCommerceNerd.com.




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com         Page 19
   Action steps

   Action step 1 – Click here to visit my site and register for free eBook updates. Stay
   informed!


   Action step 2 – Click here to see a parked page. This will help you visualise how it
   all works.


   Action step 3 – Create your Domain Name Master List to powerfully identify
   domains. Click here to download your free Domain Name Master List template.


   Action step 4 – Highlight and Copy all the names from your master list’s right hand
   column (D). Click here to freely check up to 500 domain names at once!


   Action step 5 – Copy and paste any names that you want, but which are unavailable,
   into the ‘desirable but unavailable’ table in your Domain Name Master List.


   Action step 6 – Click here to see if your desired domain is available with an
   international postfix.


   Action step 7 – Click here to learn about a Domain Acquisition Service which can
   negotiate a sale with the domain name owner on your behalf.


   Action step 8 – Click here to find out how you can park your domain for free and
   earn more income per visitor than many professional ecommerce sites earn.


   Action step 9 – Click here for a list of powerful resources recommended by
   eCommerceNerd.com.




How to Profit From Domain Names V1.0   © 2007 eCommerceNerd.com            Page 20

				
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