Domain name are considered as gold on the Internet. General domain name, such as sales.com or computersystems.com, have a great value as a lot of people are taking a guess on these domain name instead of using a search engine. For example, if someone wants to have some information about printers, he might try to type www.printers.com into the search engine. This domain name has a value for two reasons:
- First, the domain name traders will post some ads to external links on www.printers.com, and then generate a revenue.
- It can also be sold to a printer company, willing to use this domain name to sell its own products.
There is a real business out of these names. In 2007, 106 names drew more than $100,000 each, while porn.com has been sold for $9.5 million! Companies are indeed using domain name registration or trading as cash machine. They are using the domain name first to place some ads, hoping the visitors will type their domain names, and eventually sell it to a company willing to use the domain name for its business.
Some of them also buy in bulk domain names, and then place ads on it. After a few days, they sell the less productive ones to keep the profitable ones.
What is sure, domain name traders have bad reputations in the Internet business, but the trade is doing great, and seems to establish a true industry.
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