How To Make Money With Virtual Real Estate – The Buying And Selling Of Domain Names

In real estate, there is a famous saying: “They Are Not Making Any More Land”, meaning real estate is in limited supply and thus securing real estate property, is guaranteed to increase in value and make you wealthy. Well, the same can be said for domain names, which was first coined “Virtual Real Estate” by the famous John Reese. Like traditional Real Estate, in Virtual Real Estate, they are not making any more letters.

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How would you like to know an excellent way to make passive money online, for an investment of around $10? well, read on. A recent domain name that sold was, the buying price? $3 million dollars. Yes, owing the rights to 5 letter word, configured in a certain way to make sense, fetched $3M. To register the domain name, originally cost between $9 to $100. So although earning that kind of cash for a single domain name is not really the norm, one can earn excellent money buying and selling domain names, if you follow some basic principals.

So How Do I Get In

Generic one-word domain names sell the best. For example, would fetch a pretty good penny because every car and auto company in the world would want that web address. But a domain name like say… “” would have a lot less appeal. You may get offers or buy bids from some car dealers or people named Johnson, but it’s pretty obvious the demand for a name like that would be pretty well limited. Recently the domain name, sold for $230,000 dollars,, for $200,000. You get the idea, single words that make sense can earn you money. Any of these single name domain names, 10 years ago would of cost around $100 to register and own.

Keep Away From Patented And Copy-written Owned Names
Say even if “” were available, that name is obviously owned by the Honda Motor Company of Japan. First off, any site would not even allow you to offer that name for sale, and you do not want to litigate with Honda over ownership rights.

The same rule apples to names of famous people and celebrities. The governing board for domain name overlooking of such matters, which is ICANN, has always ruled in favor of the celebrities who has asked to have their names returned to them, even after they have been registered as domains by someone else. So don’t waste time investigating or buying domain names that you do not have a right to own. You will lose it every time.

Try to find three or even four letter combinations like, or etc. They do not necessarily have to make sense or form a word, as there are a lot of businesses or individuals who use a combination of letters when abbreviating their business or themselves. Three letter combinations has generally got higher bids than four letter combinations, but as we speak, are now pretty well impossible to get.

What About Hyphenated Words
Some hyphenated words may be valuable. Recently sold for a significant amount, but generally, hyphenated words are usually less valuable. for example can fetch more than The reason is, the domain owners fear that people manually typing in their domain will forget to add the appropriate hyphen and wind up at the competitor’s site. However, in this case, the word “business”, went on that famous bidding war and sold for $7M years ago. The purchaser of obviously felt that any form of the word “business” is worth tens of thousands of dollars. Going to sites like will show you how you can use different variations of this idea. Some are very successful.

When Reselling Domain Names, Do Not Over Value Them

It’s always a better option to use the “make me an offer” feature. You do not always have to accept the very first offer which may be too low as one bid can usually lead to another. If you pre-set a high price for your domain name, you will not get any bids at all.

Do Not Sell The Domain Name Too Low Either
If you say… buy a .tv domain name for twenty dollars and (who acts as a middleman for the buying and selling of domain names) charges you $50 dollars to handle the transaction, you don’t want to resell that domain name for $100 dollars. There are currently a lot of speculators who a buying .tv domain names and just hanging on them, hoping for a windfall in the future.

Make Sure You Shop Around When Buying Domains
If you are buying domain names, in the hopes of just ‘flipping’ them, you do not want then want to pay hosting. All you want is just the ownership of the domain name. Prices for just registration of a .com. .net, .org, .info domain name can vary. Some charge as little as $5 for these domain addresses, while .tv domains can cost $20 dollars or higher. Unless you are also planning to build a site, you do not need web hosting, which would be a monthly charge. Mostly all of these domain register companies will ‘park’ your domain for free.

Check out what types of domain names are selling. Take a look at websites like “” to see what’s being bid on and what the recent selling prices for certain domain names were. is a service where you can list your domain name for sale for free. You can also bid for and purchase domain names there. Be aware that charges a fee of $50 to broker the domain sale transaction. Study the types of domain names that are getting the bids and look at what they are selling for.

A lot of domain speculators aim to make a quick buck by trying to sell a dot com name they bought for $5 dollars, and reselling it for a thousand dollars. Studying that site should give you a general idea of what type of domain names would be popular to draw bidders.

Start Slow…. Buy One At A Time

Avoid buying numerous domain names in the beginning. It can be exciting to see what’s available and think “it will sell”. The last thing you want is to own 200 domain names, none which are selling or being bid on. Also consider the domain name extension, .com, .net, .org usually sell for the highest amounts. .tv is obviously geared towards the television market and may in the future be valuable. There are also domain name extensions that refer to specific countries, such as .jp, for Japan or for the United Kingdom.

So Where To Find These Domain Names To Buy
Realize that you are not the only one in the market. When a certain domain name is abandoned or not renewed or they do not pay their yearly renewal fee, after a certain grace period, the domain expires and becomes available for the registration price. Tens of thousands of these domain names expire every day. There are numerous sites that seasoned investors and sellers belong to where they pay a fee, just to be advised on which expired domain is about to be available.

The buying and selling of domain names is big, big business. which recently sold for 2.6 million could of been had for the $20 registration fee back in 1999. So with a bit of research and patience, you can be one of those people who can turn a 20 dollar investment into hundreds, thousands or more. Domain buying and selling is not only fun, it can be profitable passive income.
Good Luck trading!

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