Does domain renting work?
This is a little-known method of making money online. However, despite its low profile, it can be profitable – provided you know what you are doing.
What are the advantages of renting?
Domain renting offers more consistent income than selling domains because the income is residual. Instead of getting one thousand dollars up front, you can easily rent out the same domain for forty dollars a month. Then you would have a long-term income stream.
This is similar to buying and renting real estate. You can always sell it all at once, but why not use the property to make money long term?
And you still own it. Unlike selling domains, you don’t have to give up ownership when renting it out. This would be ideal if you have a domain you believe is going to go up in value soon, and you want to wait to sell it.
So the good thing about renting is that it brings in a consistent income. Plus it gives you the options to selling it down the road.
What are the negatives of domain rentals?
For one thing, it’s risky. The person renting it could do something which causes it to get blacklisted. This is extremely hard to change, and people are not going to be eager to buy a blacklisted domain. Also, it will reduce its value to you, should you want to keep it.
Now that you know the good and the bad, how do you start making money renting domains? Here are three tips to help you begin making money:
#1) Go with a good rental site
There are a number of domain renting sites. Which you choose really matters, because you want as many people to view your site as possible. Test a few sites, and see which one brings you the best result.
To find them, just do a quick Google search. Then you just list the price you want, and sit back and see what kind of offers people make. If you get one you like, then rent it out.
After they’ve paid you the first month’s amount, change the name servers to their hosting company. If they ever cease to pay, then change the name servers back.
#2) Get a good domain name
Renting a domain is very similar to real estate. You would need a good location to make money renting real estate, and you need a good domain name to make substantial money renting.
Generally, you want names that have good keywords in them. These will be in the highest demand.
Also,.com domains are the most valuable, followed by .net. The other extensions are generally not profitable.
#3) Do research
Look at what the price point related domains are renting or selling for. This will give you an idea of how much you can expect to get. This will prevent you from paying an exorbitant price for a domain, because you know your profit margins going in.
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