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.
Types of Domain Monetization
A domain name can be monetized in various ways, some methods being more difficult than others, or involving a higher degree of risks. The main types of domain monetization are:
- Affiliate Websites – This is when a domain name is chosen and developed as a keyword for sites and advertisements. The advertisements revolve around the chosen domain name, and profit is earned by means of clicks on the advertisements and the advertised products visitors may purchase.
- 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 domain monetization systems.
- 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 contains many targeted advertisements based on specific keywords. Profit can be earned by publishing advertisements on the parked domain name. The domain name can be put up for sale at any time. 
- 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 a relatively easy way of earning profit by means of domain monetization.
- Domain Purchase and Resale – In order to earn profit from domain names, one should be able to identify an opportunity based on a specific domain name. Depending on the business, a domain name's value can increase over time exponentially. Domain monetization by means of this method supposes registering a new website/buying an existent website and selling it after its value has increased.
- Domain Development – This involves registering a domain name, creating a business model, and developing an attractive website, with unique content, unique features, and a unique design.