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Investors know that the best time to grow your investment portfolio is during an economic depression where assets like shares and real estate are typically at their lowest.. For seasoned Internet marketer James Schramko, this is also the best time to invest in domain names or domain buying which he expects to experience a huge appreciation in value as soon as the economy improves.

What is “domaining”?

The art of domaining is simply buying domain names for financial profit. The cash gains can come in any of the following:

• Buy and sell: Where you buy a domain name at a low price and turn around to sell it at a much higher price, often 1000 times more than the acquisition cost.

• Buy and hold: This strategy involves buying a domain name that you think will become in demand someday and selling it later at a high price..

• Buy and lease or Buy and sell: You can also hold on to it, develop it into a site and use Internet marketing techniques to generate lots of site traffic and boost search rankings. A business in the same niche will want to buy a top ranking domain at a good price because it takes away most of the grunt work of SEO..

Advantages of Domaining

James started buying domains initially for his affiliate marketing programs and eventually got the idea about flipping it or selling it for fast cash from other successful marketers like Kenny Goodman. He decided to learn more about it by attending a live seminar and got hooked instantly. James cites the following advantages of domaining as a business:

Low investment capital: Unlike most traditional investments, you don’t need a lot of cash to start your business of domaining. You can buy domains at $8 or $9 and sell it at a much higher price to others who need them.

Brandable assets: You can take a domain name and use Internet marketing techniques to promote awareness so that it becomes an identifiable brand that you can later on sell to a rival website which may be outranked by your domain. Another way to monetize a domain is to build a site around it, add quality content to boost its search rankings and then offering it to a rival business for thousands of dollars..

While domain buying and flipping may sound easy and simple to do, like any investment activity, you need to learn the right way to do it in order to make money out of it. James gives this advice to those who want to start domaining: Using keyword research tools to determine good names to buy, make it a habit to buy at least one domain each month and grow your portfolio that way. As soon as the economy bounces back to life, interested businesses will start looking for relevant domains to buy and yours could easily one of them.

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