Fixer Upper Domain Names: Low Risks, High Profits

Buying a good domain name is only one step in making a successful investment. In the world of virtual real estate, the domain name is the land and the actual website is the structure. There are thousands of high-grade domain names that point to a very shabby websites, this opens up opportunity doors to willing investors.

Our main objective is to find out what makes a fixer-upper domain name, and which ones would actually make a good investment. There are a few tricks that we can use to make a valuable decision.

When finding a fixer-upper domain name:

1. Look for areas of the market that experience growth. For example, if real estate is booming hot, then real estate domain names will be also increasing in value.

2. Once the market which is experiencing online growth is pin-pointed, think of high-class domain names that have unspectacular web presence. Check the domain name auctions such as Sedo.com to see if any domains in that market range are for sale, and make a bid. Today’s domain economy is extremely "SELL" based, so you might get away buying a top-notch domain for a really low price. If you come across a really good domain name with a dying website, you possibly hit the jackpot since the owner is no longer interested in maintaining the investment and will likely sell at a good price.

3. Put together a short plan on how you or your team will improve the site, or even consider tearing down the entire site and building a new one.

4. If you see potential for a profit, make an offer to purchase the domain name from the owner.

It is important to have a plan of the website or “structure” that will be placed under the domain name. Just like in real estate, it is not logical to simply buy a home, tear it down and then try to sell the land alone. What attracts domain name buyers is the type of traffic that visits the website, so make sure that your fixer-upper domain name and the new attractive web-structure attracts lots of traffic. This traffic has to be unique, and it cannot come from paid advertisements.

Fixing up websites is not for everyone, it requires specialized skills and vision. Remember, you must be ready to spend some money to be successful in domain name fixer-uppers. Not only do you have to invest time and money to develop a jaw-dropping website, but you also have to make sure you research the market so that you’re developing in the right zone! But if done correctly, huge profits are usually claimed.