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I recently went to a seminar where they talked about domains and how to make money from them.  Personally, I never really thought out it.  I would buy a domain usually with the intention of building a website on it.  Sometimes I build a website and sometimes I don't.  So I have about a half-dozen domain names currently sitting in my GoDaddy account. 

What I did not think about is:  What is that domain currently doing?  The answer is simple:  It is "parked" by GoDaddy.  What geniuses!  What GoDaddy does for any domain that is not tied to any hosting is they "park" it for you.  Your domain now sites on one other their hosts and what they do is simply place some advertising on the webpage.  So if someone happens to come to MY domain and clicks on an ad, THEY make money.

Huh?  First of all, this needs to stop!  What they are doing is totally fair, but not necessary.  So the first thing I did when I got home was find a parking service:  This is a company that will create the simple parked website with advertising, host it, and split the profits with you.  Win-Win situation.  Is this going to make me lots of money?  Probably not.  Why?  Who is really going to be randomly looking for this domain that I have created if I have not promoted it at all.

This is where the art of buying domains comes into place!  What if I were to buy a domain that ALREADY has traffic coming to it?  Believe it or not, but THOUSANDS of domains expire every day, and with it, they pass their reputation (PageRank), backlinks and traffic with it!  So if I were to buy an established domain name, I could do a few things with it:

1)  Use it to build a new website (Good for SEO!)
2)  Use it to link to my current website (Good for SEO!)
3)  Sell links on this domain to others (Good for other people's SEO, and make money!)
4)  Park the website for free and earn money on the advertising
5)  Sell the link to someone else for profit