A cybersquatter will register the names of renowned companies, brands or famous individuals. Never use this approach by buying domain names based on speculation. This is because firstly many of the famous domain names are already taken and secondly, the dot com bust took the shine out of the wind out of exaggerated domain name prices.
In order to make profit from domain names, you need to be sensible in your approach. The main aim should be to drive as much web traffic to your domain name as possible. This will not only keep your site fully working condition but also generate revenue for you, making it attractive for sale. There are other decent ways to earn profit from domain names such as:
o Encyclopedia Web site: These site drive traffic to their website by hosting wealth of information on their web site. Regular Surfers will help attract advertisement from programs such as Google AdSense.
o Affiliate Programs: You can your domain name to redirect traffic to the affiliate web site or write articles or reviews that will links to them.
o Redirect traffic to your own site: You can purchase domain names which sound similar to your business and redirect web traffic to your business site thereby preventing competitors to take advantage of your search keywords.
o You can buy a domain name and keep it parked on a company’s server who will advertise your domain name is for sale and then split the revenue in case it is sold.