• Domain Purchases were a trend since the past 5-6 years now probably a bit more. The Trend of purchasing a domain with high quality keywords which are ranked are easy for most people to be a bait for. The problem though is not understanding the consequences of the action the previous owner has made. Domain purchases are excellent ideas and there are no questions about it (in my point of view). I have purchased domains and sold a few too. some of the domains i purchased cost over $700 and the once i have sold were over $2000.

    To look at it, there are 2 kinds of people selling the domains. One set makes the core money on selling domains. they make a website, Put in content which is fresh, Pull out a niche, work on it and get it ranked (usually with the intent of making money from the website) but when they find that there is no revenue generated, they find it a better option to sell it off.

    Below are 2 examples of domains i have sold .

    1. Gujaratclassifieds.com – The domain was a completely working classifieds website. There was moderate traffic at the time when i sold of approximately 300 visitors a day. The content was mostly user entered. But there was no revenue and i did not know how to monetize on it. the option was to sell it which seemed lucrative for me. The domain with the website was sold at $2000. Unfortunately, the person who purchased the domain did not find the website very profitable either.

    2. Moshotel.com – The domain was getting a lot of traffic from a russian search engine and most of the pages were generating revenue. I had to sell this site because i was out of cash. I sold it for $1600 with a load of affiliate pages (mostly Data feed content from the affiliate networks). The site was generating revenue then of over $300. and the traffic was over 600 visitors a day.

    Now these are decent websites. The ranking was well then and it was just worth the shot. The money was good when I sold it.

    On the other hand there are other domains which were ranking moderately well and when the panda came in, things went really bad. The PR was great. the content was mostly spammy. If i were to sell that domain to someone (which i did not) it would have cost the person who purchased it a lot of money.

    Research your domain before you purchase them. Without proper research things may not turn to your favor  Apart from the loss of money, you can expect a lot of frustration if you start putting in content and not seeing results.

    If you cannot do research on a domain or if you are not sure of the quality of the domain, stay clear of it and get a fresh domain.

    - Purchasing Domains, Why You should and Shouldnt

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