Is Collecting Domains Still a Profitable Practice?

Anyone who lived through the decades of the 1990′ and 2000’s understands how domain addictions can occur. Back in the mid 90’s, there were people buying up common dot com domain names such as clothing, wine, movie, etc. Of course, back then the domains were costing at least thirty dollars per year to buy and to renew. It was quite an investment in something that, at the time, really had no real purpose or foreseeable payback.

But those with vision, and who bought and held on to even the most common domain names, came out smelling like a rose in the next decade. Simple names like auto, insurance, kitchen, etc. ended up being sold for tens and hundreds of thousands of dollars and sometimes even for millions of dollars. That of course is quite a return on investment from a paltry thirty dollars per year website hosting.

But what about now? Is there any use in buying up many domain names with the hope of someday selling those domains for a handsome profit? Is it possible now days to buy domains, park them with ads, and get natural and converting traffic to them?

Well, the answer can be yes, but most usually it is not as easy or as simple as it would seem. You see, most of the good names are already taken. There is a finite number of words; few new words are being created over time. The vast majority of those words and the derivatives of those words are already part of existing domain names. Even domains that are not actual words can be hard to come by. For example, four letter domains are nearly impossible to obtain and can be sold for quite handsome sums. Regardless if the four letters spell anything, they are still valuable as the four letters can be acronyms for someone somewhere for something.

What about misspellings? Once again, these are mostly already taken. The only exception to this is for brand new words such as new brands, etc. In those cases, the owner of the new word or brand often has already purchased the alternative possible spellings.

I have seen some packages being offered to help people began building a “domain empire”. In almost all cases, these get rich products were fare better suited to a time 15 years ago. Today, it’s all but impossible and very improbable to find a lucrative domain with a profitable misspelling or one that can piggyback on an already existing domain. It’s best now to focus one’s efforts on the content of the domain and not so much on the actual domain name itself.

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