When it comes to constructing a domain portfolio, a little specialization never hurts. This is why I suggest that you should adopt a list of about 10 different topics or industries; and concentrate your efforts in these.
One of the major benefits of this approach is that it allows you to specialize in each of the industries you have selected. You can then dedicate a portion of your time to mastering the important features of the industry, as well as the domain names that might be popular or valuable.
By limiting this list of categories to 10, you give yourself the chance to learn more about each of the types of industries in which you will be purchasing blog domains. This can go a long way when making difficult buying decisions.
Focusing on Generic and Country Code Top Level Domains
Whenever a new top level blog domain is released, there's always a rush to capture one-word domains, two-word domains, domains that consist of only 2-3 numbers, and domains that contain acronyms. Initially, the buying is fast and furious, but eventually it slows down, as all of the obvious finds are captured.
It is very common for valuable, three-word domains to be missed in the frenzy that accompanies the release. And this is potentially where you have the opportunity to profit. If you want to try this route, here's what I suggest you do:
1. Identify and work through recently-released generic and country code top level domains. Look for diamonds in the rough that entrepreneurs overlooked in their frenzy to snatch up 1 and 2 word domains. As soon as you get the opportunity, register them at an inexpensive registrar.
2. Identify three-word phrase .com domains that have recently sold for a high price. Take these .com domains and purchase the .info, .biz, .tv, .mobi, or other TLD equivalent for this three-word phrase if it is available.
3. Identify upcoming top level domain releases. You can follow news released to TLD releases on DNForum or Afternic. Before the TLD becomes active, create a master list of domains that you will attempt to register as soon as you can. Once the opportunity is available, use the bulk registration feature on your registrar of choice to try to grab 30+ of them at a time.
Of course, when you build your portfolio, you'll want to avoid using all country code or generic top level domains. However, becoming specialized in these types of domains might give you insights and buying ideas that you otherwise would not have.
Buying Dropped Domains
While purchasing domains at auction or in bulk, it makes sense to expedite the process and to focus on mid-priced blog domains as much as possible. To the contrary, when you are purchasing deleted domains, it makes sense to work through them slowly and focus exclusively on the high-priced domains (i.e. ones that you can resell for $500+).
There are two important things to note about the domain-dropping process. The first is that it happens after someone fails to re-register a domain. And the second is that the entire process takes 75 days after the domain was not re-registered. This means that once you identify a domain that someone will not (or did not) registered, it could be quite a while before it becomes available.
When looking for and acquiring dropped domains, I personally suggest that you take the following route:
Step #1: Get Software to Identify Expiring Domains
A number of sites offer free and paid tools that you can use to identify expiring domains.
Once you do this, you should begin creating a "phantom" portfolio of expiring domains. Write down the URLs of domains that are expiring soon and that would be an extremely high value acquisition.
If no one registers the domains during the "grace period" (the period immediately following the missed registration) or the "redemption period," they will likely be up for grabs in a matter of days.
Once the domains pass through the "deletion phase," they will be available for anyone to register (and possibly for as little as $10). Of course, you should keep in mind that many people are paying attention to deleted domains. And, for this reason, you will have to use a third party system to acquire the domains during the deletion phase. This is what we will discuss in the next section.
Step #4: Periodically Re-Evaluate Your Strategies
From time to time, consider whether or not your dropped domain buying strategies are working well for you. Consider, for instance, how well the dropped domains have fit into your overall portfolio; and how they are performing over time.
Another important thing to consider is how much time you spend to acquire each dropped domain. In general, the process will be much, much more time-intensive than the others; however, it may allow you to save some cash in the process.
And there you have it: a complete strategy for capturing deleted domains. For additional strategies, consider visiting the dropped domain sections of the DNForum or Namepros.
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