Tough Domains has developed an industry concept called “The Domain Cycle”. The domain cycle is a strategy that every domainer should follow when buying and selling domains. There are four major elements to the domain cycle and they include: Discover and Buying Domains, Managing You Domain Portfolio, Monetizing Domains, and ultimately Selling, Holding, or Dropping domains.

Discovering/Buying:

There are multitude of ways discover great domains names. There are many domain name generators where you can get creative domain name ideas. You can use the name spinner or word generators to help you find the perfect name. Each generator will offer something slightly different. You can also hand reg names, check for expiring domains, purchase the domain from an auction or check domain directory listings.

Managing Domain Portfolio:

Many Domainers don’t realize that domains are a digital asset very  much like a stock or real estate assets. With any asset, you will need to declare the asset in the end of the year for taxes. In order to do that, you need the buy/sell, and net profit/loss information associated with each domain. You can read about domains and taxes here.

After a name is purchased, you are going to need a central location to organize and consolidate all your domain information. Often times, domains are purchased from different locations such as auctions and resulting domains hosted in many different registrars. You will need to manage your portfolio to verify where your domain is listed and when it will expire.

There are traditional tools like a spreadsheet from google or excel, and programs like Domainpunch, which is a desktop software. There are also online domain management portfolio software that will back up your information on the cloud.

Monetizing the Domain:

There are many options when it comes to monetizing a domain. They can include the following:

• Parking your domain (Bodis)
• Domain Development with advertising (WordPress with Adsense)
• Affiliate commissions (Commissions junction and share a sale)
• Lead Generation (Capturing leads on your domains and selling them)

200 domain names at a $10 registration fee result in $2,000 in annual registration fees per year. Monetizing the domain is a great way to offset registration fees.

Sell/Hold/Drop:

Like all assets, everything has to turn a profit. You can choose to sell a domain for a price that satisfies you. You should continue to register domain names that you think will have a great return in the future. If the domain has low-interest or you think is low value, you should consider dropping it.

Some options to sell your name includes:

• List your domains at an auction (Flippa, NameJet)
• List your names in a marketplace (Afternic, Sedo)