Since search engines regard inbound links as recommendations, these links have a decisive influence on the ranking. The search engine definitely doesn’t appreciate link networks and won’t give new projects a jumpstart by allowing a former website’s backlink profile to be used when registering a new domain. Using an expired domain is like playing with fire, where the worst case scenario is that you’ll be penalized or be excluded from the search index.

Before you park any domain names, you must focus on finding hot keywords that buyers would be interested in. The best way to make sure you get a good return on your investment is to pick a domain name with acceptable traffic, somewhere around 10,000 searches a month. You can do this conveniently by using tools like Google Keyword Planner or Niche Finder Software.

If you are looking to monetize an idle domain, looking to third-party platforms would be a good idea. Many of these platforms such as Nameforest ourselves will create a logo alongside your domain, which will be added to the list of preexisting domains on their sites. This is useful as the demand for your domain will also be greatly increased after it is rented as opposed to a domain that leads to a blank site - thus making it easier for you to find a potential buyer.
It is mind boggling how local search engine optimization has grown from a tiny market to a mammoth industry within a span of ten years or so. This is also one of the reasons why focusing majorly on local names is profitable. From doctors to pizza parlors to salons, everyone wants to see their business thrive on the first page of Google Search results with the help of target keywords.
In theory, you could technically acquire a domain for $10,000 and be able to sell it for $100,000. You could also acquire a domain for $10 and be able to sell it for $100,000, $10,000… or $100, you get the picture. Because of this, it’s hard to recommend a perfect starting budget because your strategy, experience, and the pace at which you learn will hugely affect your buying and selling decisions.