There are several types of domain names to avoid. One is intentional misspellings, as these make it less likely someone will search for them. You also want to avoid names with extra symbols like hyphens, or with added prefixes and suffixes like "e" or "my." Outside of a few notable exceptions with very strong brands (like eBay), those additions can only hurt the value.
The practice of exploiting misspelled variants of popular websites for personal gain is known as typosquatting. Users who incorrectly enter URLs into a browser’s search bar may be getting more than what they’ve bargained for and end up on a squatted domain. We’ll show you how typosquatters exploit the simple workaday mistakes of internet users and how website operators and their visitors can...
Parking the Domain Name: When you park a domain name, every time someone enters IHateCold(.com) into their web browsers, a page with a few ads and sales info is shown. So you’re letting the visitor know that the domain is for sale and you make a few cents on the ads displayed for views. There are several domain parking services for when their buying and selling domain names, but I’ll go into that in another post.
Be careful! When searching for domains, it might be tempting to, for instance, buy mcdonalds.net (if it were available) and then try to sell it to McDonald's. The logic here would be that they own the .com and wouldn’t want anyone to own the .net and use their name, right? Also, it’s a big name so there’s gotta be a biiiiiiig payday comin’, RIGHT? Wrong, and wrong.
To find popular phrases I opened up the Google Keyword Planner. This free tool by Google, allows you to find out how often a word or phrase is searched in Google. A phrase like “Yoga Mat’ has on average, about 10K – 100k monthly searches. That’s A LOT. However a more niche phrase like “Good Yoga Mats” only has 100 – 1K monthly searches. These seem similar, but I wanted to focus on the exact popular phrase that people are searching for.
The domain name industry is quite similar to the real estate industry in a lot of aspects. There are end users, brokers, consultants and domain flippers or “domainers”. Domain flipping works similarly to buying a house, renovating it (or even sometimes just sitting on it) and then selling it again at a higher price point. The gist of it is: you’re purchasing a domain name and betting it’s worth (or will be worth) more than you paid for it. If you’re right, you get a nice paycheck and move on. Those who make a living out of this just rinse, repeat, and scale.