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Potential Dangers of Expired Domain Business - Some Precautionary Tips

Article Description:
====================

Investing on expired domain names could be very risky and
dangerous if you are not careful enough in managing them.
The perceived potential of earning huge income is very high
with very good domains. On the same vein, the chances of
losing your money in the business could also be very high
especially when you commit blinders after blunders.


Additional Article Information:
===============================

511 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2009-08-04 11:00:00

Written By:     John Khu
Copyright:      2009
Contact Email:  mailto:[email protected]



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Potential Dangers of Expired Domain Business - Some Precautionary Tips
Copyright (c) 2009 John Khu
Expired Domain Secret
http://www.expireddomainsecret.com



Investing on expired domain names could be very risky and
dangerous if you are not careful enough in managing them. The
perceived potential of earning huge income is very high with very
good domains. On the same vein, the chances of losing your money
in the business could also be very high especially when you
commit blinders after blunders. Most of the newbie domain traders
commit lot of mistakes while managing their business operation.
Most of them who buy expired-domains end up in making huge losses
by adapting very bad trading methods.

Newbie domain traders should remember that maintaining their
domain names is actually very costly and difficult. Each
additional expired domain may cost them an extra $25 to the
overall maintenance bill and this figure recurs every year as
well. In reality, the actual cost of $10 as annual renewal fee
may not look very big. However, a big portfolio of domains may
cost you too much money in combination. Sometimes, you may need
to spend an additional amount of about $3 for each domain in the
maintenance process.

When combined, the annual renewal fees to be payable on a stock
of expired domain names could dent your pocket in a big way. To
bridge the gap or to maintain the renewal parity, you will need
to sell some of them at good profits. Otherwise, you will be
sitting on a stock of expensive domains that are almost useless.
Let us say that you have a stock of 100 expired domains. Let us
assume that each one of them costs around $10 as annual renewal
fees. In total, the cost renewing all the 100 domains come to
about $1000. This is a huge sum of money for any domain trader.
In order to cut losses, you will need to create a turnover of a
minimum of $1000 by selling some of them. This amount is just
enough to cover the cost of renewing those domains. This is
possibly the most frustrating thing with selling expired domain
names.

On the other hand, expired domain business becomes commercially
nonviable when you buy a few numbers of domains. The average
selling rate for an ordinary expired

domain name is about $25. It means that if you do not sell a
name, you will be investing another $1o towards annual renewal
fees. In all, you will be creating a loss of $10 every year on a
domain that sells at $25! Sitting down on an expired domain is
likely to cause accumulated losses every year. Domain traders
always commit the mistake of waiting for that big sale in the
hope that it will bring a huge income!

Many domain traders also commit the mistake of buying expired
domains that come with assumed traffic. However, the traffic
associated with an expired domain could be of very bad quality
and most of these incoming links are not sustainable. Real
traffic comes only when someone types the actual URL of the
domain. Also known as organic traffic, this provides you a great
opportunity to earn decent profits.






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John Khu is an author and also a seasoned professional 
with vast experience in expired domain name business. 
He is also the owner of the path breaking web sites 
called http://www.expireddomainsecret.com and 
http://www.expireddomaingains.com which provides 
complete and up-to-date information on expired 
domains and their eternal secrets.


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