It is a simple fact that some very valuable domains have been bought and sold over the years and if you are just entering into this marketplace you will run into people who do this full time. Dot com domains then dot net and dot org are the ones with the top market value and it is fair to say that it is tougher now to find names that have not been registered. If you can instruct yourself about this market, you can still create healthy profits once you realize where the demand is.

The first type of domain we can look at are short domains and as a basic guideline the shorter the name the more advantageous it can be. As more social network type sites pop up, these type of domains can turn out to be very marketable as they can produce a unique and original sounding name. It is apparent that the combination of letters should have some significance to them or sound as having some potential. Put simply a random mix of the wrong letters would have almost no appeal to someone so it is a matter of your own sound judgment and seeing what else sells in the marketplace.

Domain names based on keywords is the next area we can look at and these can be found in a very similar way as researching markets on the web. In the same way that we use keyword tools to determine the value of a niche market, this is often the same for domains and in particular we are looking at exact keyword results. The specific domain for a search phrase with a good number of exact online searches could be profitable if it is currently unregistered. The dot com will definitely have the most value but is the more than likely to be unavailable and so dot net and dot org can still be a good investment. Domains in some markets have greater value than in many others and you will acquire a feel for this as you grow to be more involved in the process.

A further area of escalating interest for domainers are extensions with regards to particular international locations such as the UK and Germany. The explanation is that there are still domains readily available in potentially high value markets that could therefore make profitable investments. If you view the market, you will find that you are more aware of where the value is. DNForum, NamePros and Sedo are all sites that specialize in exchanging domains and so you should spend some time there.

There is a learning curve at first and if you acknowledge this, you can start to generate profits from the domains you own.