Question on domaining technique...

[FlipTheBird]

First, hello to everyone I am new on the board & domaining in general. Have a question about a technique I've been using. Please feel free to chime in...

I recently started buying domain names. Like others I'm sure, my first instinct was to just purchase names from places like godaddy, purely based on if they sounded 'good'. If it was it a popular phrase with a .net or .com extension, I was buying it.

After some research, I found out that the lion's share of profits made from domain names DOESN'T come from buying & then quickly selling, but rather, from buying names, then developing, THEN selling. Soooooo...

I then changed strategies. Instead of buying something that just sounded good or looked good on paper, I would use the Google adwords tool to check the traffic that certain phrases were generating; car mechanics PA or organic bird seed, for example. If the traffic generated on a monthly basis (say 20,000 or more per month) was there, and it was a 'good' name & ended in either .com or .net, I would snatch it up...with the ultimate plan of developing each of these sites over time utilizing adsense, etc.

Am I on the right track? Or is this a 'rookie' mistake or just plain terrible way to accomplish things??

Thanks in advance for your help!

 

[werty]

I think you need to sit down and rethink everything. Are you looking for money now or in the future? Domain flipping = short term vs domain developing = longer term. It's like comparing trading vs investing in the stock market.

Basically flipping a domain is easier than developing. Developing a domain requires more time and funds. There's no guarantee that after you sink all that hard work and funds developing a domain someone will want the domain. There's no guarantee either that someone will want a domain "as is" if you are simply trying to flip but the downside + wait time is much less. You can simply flip and reinvest quickly (what I do). Rinse and repeat and your cash will grow VERY fast.

 

[garptrader]

If you relocate to a new city, would it be wise to buy a vacant lot with no research and supervise the construction of your own new home? Wouldn't it be best to live in temporary housing a while, get to know the area, work with an experienced real estate agent, ask colleagues at work, etc. about good places to live? Launching a website is considerably more work than acquiring a domain name and even then if there are millions of search results for the domain's keywords, the site may end up ranking on page 50 of Google - with zero traffic and no earnings. Research from Chikita indicates that about 70% of search traffic goes to sites which rank in the top four positions of page one and about 95% to sites on page one. To develop, one needs to find a niche which interests them, where the competition isn't insane and yet where traffic can be monetized (not automatic).

 

[Eric]

If you relocate to a new city, would it be wise to buy a vacant lot with no research and supervise the construction of your own new home? Wouldn't it be best to live in temporary housing a while, get to know the area, work with an experienced real estate agent, ask colleagues at work, etc. about good places to live? Launching a website is considerably more work than acquiring a domain name and even then if there are millions of search results for the domain's keywords, the site may end up ranking on page 50 of Google - with zero traffic and no earnings. Research from Chikita indicates that about 70% of search traffic goes to sites which rank in the top four positions of page one and about 95% to sites on page one. To develop, one needs to find a niche which interests them, where the competition isn't insane and yet where traffic can be monetized (not automatic).

Totally agree.

 

[AstoundingDesigns]

If you relocate to a new city, would it be wise to buy a vacant lot with no research and supervise the construction of your own new home? Wouldn't it be best to live in temporary housing a while, get to know the area, work with an experienced real estate agent, ask colleagues at work, etc. about good places to live? Launching a website is considerably more work than acquiring a domain name and even then if there are millions of search results for the domain's keywords, the site may end up ranking on page 50 of Google - with zero traffic and no earnings. Research from Chikita indicates that about 70% of search traffic goes to sites which rank in the top four positions of page one and about 95% to sites on page one. To develop, one needs to find a niche which interests them, where the competition isn't insane and yet where traffic can be monetized (not automatic).

Took the words out of my mouth. Your reply should be stickied. Not the topic, just your reply.

 

[werty]

I forgot to mention that if you still wish to develop some domains, you could focus on developing some of your best "none-sellers" (failed flips) WITH profits from other flips! This way you are not risking money directly out of your own pocket.