Domaining is an Internet-based business through which you buy, sell, develop and monetize (convert into money) Internet domain names. Domain names are web addresses and come in a variety of different extensions, the most common of which is .com. These domain name portfolios can include marketable, generic word names, or names with expired registrations that still have a decent amount of traffic.

Domainers

This term refers to individuals, companies and organizations that make it their business to collect portfolios of generic Internet domain names. Domainers typically avoid trademarked names and will not take part in typosquatting (leading a user who accidentally mistyped a website address to an alternate website). Domaining is considered by those who practice it to be in the same business vein as real estate investing. The business of domaining includes domain parking, domain name reselling, and domain name development. A strong combination of these elements will provide you with a higher income potential as you begin collecting revenue from each practice.

Domain Parking

Domainers generate revenue by using domain parking. This method takes type-in visitors to an underdeveloped website that has advertisement listings and links. Through the pay-per-click method, the domainer makes money based on the number of clicks each advertisement gets. The domainer determines whose ads will have links posted on the site through advertisers bidding for placement. Once the ads have been posted, each click on the link will earn the domainer income.

Domain Name Reselling

The business of domain name reselling involves providing registration of available domain names for business clients. Reselling may also include acquiring expired domains from a drop registrar for resale at a later date. A drop registrar takes domain names that have expired and have been deleted and registers them for use again.

Domain name auctions provide resellers with another way to buy and sell domains and can prove to be quite profitable if you have quality domain names that are in demand.

Domain Name Development

If you want to take things a step further and make even more money online with your domain name business, develop your domain names into fully functioning Web sites. That way, you will profit from the sites as well as through various web marketing techniques that increase traffic to each of them. Marketing techniques that are sure to drive Internet traffic to your sites include:

* Pay-per-click (PPC) * Affiliate marketing * Search engine optimization (SEO) * Really simple syndication (RSS feeds)

There are many methods that increase your odds of making money online. You can learn everything you need to know about starting one of these Internet businesses by surfing the Web for information. Find out what each type of business involves and the best ways to get started. Visit Web sites of other Internet entrepreneurs who are already making money with the type of online business you want to launch. Take the time to learn what works for them and what does not.

Making money online through domaining can be a very profitable venture if you take the time to research the best methods for building your business the right way. A bit of reading and research will give you access to all the knowledge needed to cash in on this online money maker.