DomainInvesting.com

I like Supplies.com domain names because nearly every business or industry has supplies, and where there are supplies, there are usually companies that sell supplies online. Likewise, people search for different types of supplies online, and as we all know, a developed website on a keyword domain name can rank well in Google and Bing.

So how do you know what type of Supplies.com domain name to buy? I generally do two types of searches before making an acquisition – a Google keyword search and a general Google search. With the former, you are able to see a very rough estimate of how many people are searching for that particular keyword/phrase per month (I do an exact match search). With the later, you are able to see the number of results and get an idea of the amount of advertisers. Obviously the more advertisers, the greater the potential to earn with Adsense/PPC, as well as seeing who your potential buyer could be if you opt to sell.

If you plan to develop a Supplies.com domain name, there is one important thing to keep in mind. People who visit aren’t generally looking for information – they are looking to buy supplies. Most of my developed domain names are informational websites, and I don’t need to have a product. With a Supplies.com domain name, it would behoove you to sell supplies.

One way to sell supplies without having to worry about inventory management and fulfillment is to work with a company that does drop shipping. Many companies offer this option regardless of who you are (as long as you open an account and possibly subject to a minimum opening order). Additionally, if you own the category-defining Supplies.com domain name, other companies who don’t regularly offer drop shipping might offer it to you, because they recognize your brand, even though it might not be developed. It’s one of the benefits of a great domain name.

I don’t own any Supplies.com domain names, but I would buy a good one to develop in the future.

For the past few years, my primary source of revenue has been domain sales. Lately, with domain sales lower for me in the last 10 months or so, I have turned to development to generate revenue. I’ve been building out websites, testing ways to monetize websites and domain names, and selling advertising space on my blog and my developed websites.

Although the “easy money” (if you could call it that) is no longer coming in via domain sales, I think this will turn out to be my most successful year. Sure, it was fun working less and enjoying life more last year and the prior year. However, it wasn’t nearly as fulfilling as doing what I am doing right now. I’ve used this past year as an opportunity to learn about web development, marketing, sales, social media, and a whole bunch of other things I hadn’t paid much attention to without a true need to do so.

Just about anyone can sell a good domain name if the price is right. The challenge is to be able to increase the value of your domain assets during difficult times. The most obvious way to do that is to increase revenue and traffic, and that is done with development (unless a big company names a product/service after your domain name and decides to pay you a bundle – much like winning the lottery, this happens infrequently).

If you are just getting involved with domain names, I hate to say it, but the easy money isn’t here right now. I do think we are still in the very early stage of this business and domain values haven’t peaked, but I caution anyone who is coming in here to make a quick buck. You need to have a longer term strategy carved out before you spend money aimlessly. Back in April of 2008, I posted my 5 year plan, which is always evolving depending on what deals come up, but I always do what I can to stay on track.

If you are just coming in to the domain industry, I recommend that you create some goals and write down how you will achieve them. The low hanging fruit isn’t really there to be picked any more, but there are plenty of ways to become financially independent from this business, but you need to stay focused.