Starting in the domainer business is not a hard thing to do nowadays. All you need to do is to invest in domain names. The limit is your funding and common sense. However there would be no great success if you follow quantity of domain names in your portfolio alone. Sure you will have a huge portfolio of garbage names, perhaps some of them will earn you cents on a dollar for profit but your whole domainer business is at stake if you do not have quality domain names in your portfolio.
You will read on many places that domaining business is all about numbers. If you have a large portfolio of domain names you are in for a good ride. This is not exactly true. Gone are the times when you could just pick any arbitrary dictionary word, buy a registration fee domain simmilar to the phrase and earn profit of domain parking alone. Competition in the advertising industry has driven prices down to cents instead of dollars, advertisers have smarten up and they do not want to advertise on garbage sites because their return (read visitors) is at stake.
Domain parking is not dead but its lucrative times are long gone. If you want to earn profit on domain name parking you need to have real quality domain names. Garbage (mixed dictionary words, numbers, domain hacks) names are not working anymore, no Sir. Sites without real content – the ones parked domains are large part of – are just not working anymore, not in the real sense. We can conclude that domain name industry has grown up from a toddler to a child.
The right path to pursue at this stage of domain industry development are the content sites. Featuring not only advertising and affiliate programs but real hard content related to domain name niche. This however involves work and motivation, golden chicken flew away and it is not going to return. This is a welcome change indeed, picking crumbs from domain parking even with huge portfolio will not make you quit your daily job and become full time domainer. Domainer is becoming manager, managing sites with content, real value, managing people working on the sites and sales of domain names. Promotion is another key, quality domain name can be golden for end user but it means nothing to domainer if he/she cannot find the end user in the first place.
Reselling domain names is also not lucrative anymore. The amount of work involved in finding potential buyers does not justify price margin reseller can get. This is because competition grew tenfold in the last years. Everyone and their mother can start in domainer business. But not everyone can succeed. This is actually natural movement of business environment, critical mass hit and vultures cannot cope with people with ideas and real motivation – profit alone is not the real motivation. And it is a good thing this is happening. We do not want any more domain squatters, typo domainers and such. We want for domain name industry to grow, we want value added to domain name, increase quality of domain names and as end result better prices for domain names.