Domain Monetization

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Domain Monetization is the business of buying domains and running advertising campaigns on the landing page with the purpose of earning profit from advertisements from traffic which often comes from direct navigation.

Short Overview

Domain monetization is one of the largest and most profitable online industries. Simpy put, a company or an individual decides to purchase domain names and then either to sell, lease, or park these domain names with the purpose of earning money. The ROI (return on investment) rate one could reach by means of domain monetization depends strictly on the domainer's plans for the domains and his ability to sell, lease, or park these domains. The larger the number of domain names to monetize, the bigger the risks involved.

Making Domain Monetization Profitable

Being part of the domain monetization industry may turn into a profitable business but it is also an inherently risky business. In order to be part of this industry, one should be able to identify opportunities, see the gaps in the market, and learn how to spot a good domain name. Besides spotting good domain names, one must be able to successfully sell or lease these domains legally. It is important to be aware of the principles behind purchasing and selling domain names, domain auctions, drop services, and other parts of the process [1]

Types of Domain Monetization

A domain name can be monetized in various ways, some methods being more difficult than other or involving a higher degree of risks associated. When it comes to domain monetization there are advantages and disadvantages, as in any other business. The main types of domain monetization are briefly presented below:

  1. Affiliate Websites – This the case when a good domain name should be registered, a website should be developed and filled with attractive and relevant advertisements. The advertisements published should be related to other similar websites as the domain name, and profit is earned by means of clicks on the advertisements and the advertised products visitors may purchase.
  1. PPC Websites (Pay-Per-Click) – In the case of PPC campaigns the profit is earned from PPC advertising systems such as Google AdSense. These are popular and easy to implement systems of domain monetization.
  1. Domain Parking – Even if this type of domain monetization is not highly used, the possibility of "parking" the domain name is possible. Basically, the domain name contain many targeted advertisements based on specific keywords. Profit can be earned by publishing advertisements on the parked domain name. The good news is that you can anytime put the domain name up for sale. [2]
  1. Domain Leasing – If the company or the owner does not want to publish advertisements, the domain name can be rented to other advertisers or interested parties. This is relatively easy way of earning profit by means of domain monetization.
  1. Domain Purchase and Selling – In order to earn profit from domain names, one should be able to identify an opportunity especially related to desired domain names. Depending on the business, a domain name's value can increase over time exponentially. This is why purchasing and selling of domain names can be highly profitable. Domain monetization by means of this method supposes registering a new website/buying a existent website and after a period of time when its value has increased to put it up to sale.
  1. Domain Development – This involves registering a domain name and developing an attractive website, having unique content, unique features, unique design - all based on a business model.[3]