Domain Name Investing Domain names offer both passive income and capital gain
opportunities.
Passive income can be earned from natural type-in traffic and/or
residual backlink traffic from previous development. Domain
traffic can be directed to parking company nameservers in exchange
for a share of third party ad revenue. Type-in traffic is
based on broad navigation trends so it tends to be more persistent
than backlink traffic which may depend on a handful of tenuous
links. Parked domains are generally excluded from search
engine results, so search traffic is best exploited by building a
website, not parking.
Capital gains result when a domain is sold in the aftermarket for
more than the cost basis (purchase price/registration plus renewal
fees).