Wednesday, January 17, 2007

Investing in Internet Real Estate

Internet real estate offers several advantages over traditional real estate. For starters, internet real estate has fewer barriers to entry. You don’t need to raise capitol, hire lawyers, or invest large sums of money. Instead you can buy a “piece of land” or a domain for around $10-$60. With such low barriers to entry anyone can become an internet real estate investor.

There are several ways to get started in internet real estate investing. Anyone can get started by creating a new domain name. This is like buying a piece of land in the middle of nowhere, site unseen. If you buy a domain that no one knows about, no one visits, and no one can find, then you have got yourself the equivalent of a piece of swampland in Louisiana.

The value of internet real estate is the amount of traffic that it receives. If you are looking for a place to set up a new Starbucks, you don’t want to build in the middle of nowhere. You want a location that is going to give you a lot of traffic, visibility and customers. It is the same with internet real estate.

Concentrate on domains that already have traffic from a preexisting link structure, or that have been listed with the major search engines. The more traffic a domain receives the more valuable your internet real estate. To find domains that are valuable a program like is an excellent assistance. The program lists all of the important traffic statistics about a domain before it expires. You can then register to purchase the domain in a private auction before it goes on the market and possibly find yourself a high trafficked domain.

Once you have a piece of internet real estate, or a domain, you can turn your investment into a profit just like real estate.

Develop your domain. Take your new internet property and create a website. Since you already have traffic, you can set up shop and use your domain to market a product, redirect to an affiliate program, or by creating a page and using AdSense for revenue. Then you have to option of going ahead and getting more traffic to your domain, or letting the current traffic support it.

Rent your domain. Park houses like will host your domain for you, place keyword targeted ads, and when someone clicks on an ad you get paid. It is like renting an apartment but a lot less work.

Resell your domain. Many domains can be purchased at a discount at a private auction. You can purchase a domain and then resell it at a public auction for a quick profit. Or, if you find a great domain name, you can hold it and let it increase in value.

These days the real estate market is looking scarier and scarier. However, investing in internet real estate is relatively new. The supply of good internet real estate is increasingly contracting while the demand, and prices, for high quality domains continually go up.

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