How proftable is domain business?

[tycoon]

I have had few queries regarding Domain business. People wanted to know, if they can make some money from it or how successful would they be, if they were to start such a business.

As usual, I would only present my view and that may not apply to you. So, pick up things you find useful and analyze them in your case.

Domains or the web addresses like .com, .net and many more have been through good and bad times. When it started, domains used to be sold at some $80 a piece if i remember correctly. With time and ICANN prices gonig down, competition rising, today you find domains at 60 cents even. So, its a wide range and you need to build up a reputation and name in market before you can dream off making big.
This business needs good investment to the tunes of say $100 onwards unless you go with free sub-resellers from Directi Resellers. So, once you have made that investment, next is how to convince customers to purchase domains from you. Remember you are just an agent and nder no way control things. You only get paid thru commission. In a way you buy domain at a price and sell it at higher value so whateve ris the difference, count that as profit.

Honestly, unless you are big fish, your profits can range from a few cents to maximum a $ on every domain purchase. You can be happy with whatever you get but remember you already blocked some $ as security.

One thing to remember is that why would customer go with you when they can get same thing at same or even reduced prices elsewhere? Thats where the competition takes toll on you.

Evenif you claim to offer highest quality support, gest is that you need to pay people providing support, so that cuts down your profits as well unless you are going to sit whole day and night and run it like one man show.

Don't forget, you too are dependant on registeries or domain resellers. So, you'll still get cursed evenif things are beyond your control because clients won't understand this.

Now the obvious question is then how do those on net manage it out. Substantial number of them are on free directi resellers, so their investments are 0. They earn with domains they sell, no other deposits they make. So, whatever comes to them is their profit. Also, they do not have that good support, its more or less "one man show", so staff cost is cut down. In addition, they offer hosting and related services as well or have other means to cover up for reduced prices.

Biggies like GoDaddy profit from volume they sell. So, its volume that gets you bucks, otherwise not much profit from sale of a few domains.

I guess, i might have scared a few of you, but you deserve to get real picture here, before you block whatever funds you have under false impression.

Let me know if you have any other query.

[cassandra]

I think good profits are earned from domain names with good traffic and those names that relate to certain niches. You can also learn huge if have registered a domain name similar to a big company's name.