Mistakes People Make When Buying Domains
There is money to be made if you know what you’re doing when it comes to buying and selling domains, whether you’re buying FTR (free to register) domains or you’re buying a domain from someone else. Before you spend any money on a domain make sure that you’re not making any of these common mistakes that people make:
Stay away from any domain that has a word or sentence in it that’s trademarked, such as “Sony”. Even if you think that you could buy it and sell it on for more you should still stay away from it just in case you get into trouble over it – it’s not worth the risk. If you think that you’d get away with using a trademarked term in a domain since you’ll be creating a site that will only say positive things about the company or whatever, this isn’t always the case. In short: Don’t buy a domain that could potentially get you in trouble.
If you’re planning on buying a domain to sell on to someone else in the future, try to choose a domain that has a number of potential buyers rather than a domain that only one person/business would be interested in. This will increase your chances of getting a sale as well as being able to charge more for the domain so it’s a win-win situation. As well as this, if someone knows that you could sell a good domain to one of their competitors they’ll be more likely to buy it to make sure that someone else can’t get it.
Long domains with around 5 or 6 words in it generally aren’t worth a lot, especially to an end user. For this reason, I’d recommend that you don’t purchase any domain that is long unless you’re planning to develop it and believe that it could be profitable. No serious company will buy a domain that is near impossible to remember. Companies want domains that are short and catchy so people will remember it without even thinking about what the domain was.
In general, hyphens (site-example.com) don’t really work too well when it comes to domains. There are some big sites that use hyphens but unless you have a really good domain with a hyphen in it you’ll have a tough time trying to sell it. Another mistake that a lot of people make is that they buy a domain with around 4 words in it and a hyphen separating each word (so 3 in total). This doesn’t look very professional so the chances are that the domain will be worth nothing. Most domains that are worth anything with a hyphen in it are usually like word1-word2.com.
One way of telling whether a domain could be worth anything is by checking how many exact searches it has each month on Google by using Google’s Keyword Tool. By default it’ll show how many broad searches there are, but changing this to exact searches gives you a much better idea to see if a domain is of any value. I’ve going through how you can use this tool here – Using the Google Keyword Tool.