Profitable Domain Name Speculation

Anything that has the word 'speculation' in it can be a bit scary.

We associate the word with people taking carzy chances and losing
all their money. It's true, most have warnings saying that the value
of what you buy can go down as well as up.

So when I mention domain name speculation you will either think of
people buying domain names for crazy amounts of money then losing
their shirts, or others buying domain names really cheaply then
making a killing buy selling a well known name to a big conglomerate.

We're not talking about 'cyber-squatting' here where you buy a domain
only to try to blackmail someone into paying you a high ransom for
it. Big companies with protected trademarks can easily make you get
down on your knees and hand trademarked names for nothing!

Well, these are both extreem views, just like other forms of speculation
if you learn the right tricks and techniques and don't try to 'reinvent
the wheel' you have just as much as the next person to make some good
money.

Of course, to achieve this you have to do some homework, you don't
just want to run up to the table and throw away all your money on
one bet!

The most successful speculators study the markets, plan carefully and
don't expose themselves to uneccesary risks.

They put togther a balanced portfolio based on various markets and
risks associated with them.

With domain name speculation you can do the same, for example don't
choose domain names associated with just one market or niche, ie
travel agents and hotels, garages and car sales. If you study the markets
you can build up a nice portfolio based on a cross-section of markets.

Decide what kind of domains to buy, for example .com .org.info etc
Sometimes a domain name with a hyphens can be good, a keyword
rather than a company name etc.

Also timing is another factor to take into account, if you find what you
think is a good name, it may well be that a new version is coming out soon
like .mobi so perhaps that's a good time to sell them on and put your money
into some new names rather than keep hanging on for the 'big one'

Don't just rely on the information provided by the seller, if you take the time
it's really easy to gather convert information that isn't really obvious when
you come across a domain that looks 'too good to be true'

So don't get carried away before you do your homework, be level-headed
about your speculation and don't rush into a deal. There are some good places to
do your research and homework as well as auction sites to buy and sell.

Domain name speculation can be very rewarding and profitable, done the right way,
it can be a long-term business through all types of economic situations too as long as
you don't see it as making a 'quick buck'

Although there are many people investing in this area, it's knowhere near as competitive
as other ares of speculation and if you take the time to educate yourself with the right
knowledge and use the correct tools, this could be a serious long-term bsuiness for you.

Happy speculation for the future!