Think about things like contractor.com or oranges.com. The more generic you go, the better off you will be. Why? Research has shown that Google likes generic names, so any company selling oranges may, for example, want the oranges.com domain name. If you own that name, you can set the asking price for it. Sounds great, right? There arejust a few things you have to think about first.
I did this last month, snagged a great domain that no one else found and got it for $69 because I waited until the last moment to place my pre-bid. Flipped it within a week for a little over $1,000. And probably could have gotten more if I sat back and waited 6-12 months, but a bird in the hand… (plus I like to keep turning over inventory and maintaining cash flow).
Content setup: If your domain has potential to attract good search engine traffic, you might want to set up some content to help facilitate that. If this helps your domain do better in the search engine rankings then it’s a big win regardless of whether you choose to flip the domain only or flip the domain with the content as a “website”. The SEO value will be helpful either way.

Another point of concern is that many people feel that squatting or registering domains is unethical. This is because many web developers have a hard time finding relevant domain names for their projects since most of them have already been registered. Many corporate giants also frown upon the domain flipping industry because many domain names relevant to them are already registered.


Many non-savvy internet users may not even be aware of the existence of other extensions. That said, because there are many new extensions popping up every now and then, you can often find amazing one word and 3-letter domain names with these new extensions that are otherwise almost impossible to find unregistered in the .com world. Additionally, these new extensions are becoming more and more familiar to users every day, hence it's almost certain that their value will continue to increase as time passes and wider adoption manifests. 
As .COM is the natural domain extension for the United States based websites, it does get some priority in the Google.com’s search engine results (based on Google’s US datacenters) when competing against other countries’ domain extensions like .CO.UK, .CO.ZA, .COM.AU etc. However, .COMs don’t get automatic priority over other similar extensions like .ORG, .NET etc. that are also commonly used in the United States. All these domain extensions compete with .COMs on a level playing field.
Expired domains are especially attractive due to key SEO factors that are primarily associated with an existing backlink profile. If you are considering buying an expired domain, you can determine the quality of it by looking at the inbound links. When it comes to assessing the value of an expired domain relevant keywords contained in the second-level domain, a possible reference to products, brands, or services are all useful.

Namejet is a domain clearing house (at least that is my term for it).  What happens is that people let their domain names expire everyday.  Some people just don’t need their domain anymore, some people forget to renew it, some people die, I mean there can be hundreds of reasons why a domain will not be renewed.  What the domain registrars want to do is cash in on the domain that someone forgot to renew, so they offer that domain to Namejet to auction it to the general public.  Think of it like a storage unit, someone doesn’t make their payment and the storage company hires an auctioneer to come and auction the storage unit to the general public.  Namejet is doing this but for domain names.  The bid for each domain starts at $69.  What I LOVE about Namejet is the process…  they let you search through the domains that are coming up for auction 30 days in advance.  Whoever places a $69 bid on a domain will be entered into an auction when the 30 days runs out with everyone else who placed a bid.  If you are the only bidder than you get the domain for $69.  If there are 10 other bidders than there is a closed auction, meaning only you 10 guys can bid now against each other in a 3 day auction with the highest bidder taking the domain when the clock strikes zero.  I love this because let’s say there is a great domain and it flies under the radar.  If it goes to auction with only 3 or 5 or 7 bidders my chances of winning this domain at a very low price are great.  I’ve won domains for $100 which I was able to flip for $2,000.  I won a domain for $2,500 which I flipped within 4 months  for $7,500.  I won a domain for $1,000 which I’ve turned down $5,000 offers on because I think I can get $10,000 for it.  The key is to not overpay in order to leave yourself plenty of room to turn a profit when you flip the domain.
Dictionary Word/Pronounceable/Memorable/Brandable: A dictionary word domain name is very valuable. Of course, the more popular and widely used the word is, the better. For example, “marketing.com”, “cars.com” and “hotels.com” are 7-8 figure domain names. Even if a domain name isn’t a dictionary word, being pronounceable and/or memorable and/or brandable are all big pluses that add to its value.
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