Why Investing In Cheap Domains & Blogs Is Better Than The Stock Market

Sometime last month (or this month, who knows) the market when on a bit of a tanking spree. Investors started going nuts, and everyone putting their cash into stocks started to get a little rowdy, as they always do when these things happen. I can’t blame them either, because for a long long time when people thought of the word “investing” it was always synanomous with the stock market. I am not a stock market investor. Nor am I a fan of it really. I think it’s a cool gambling technique if that’s what you want to do, but the returns are shit unless you invest A LOT and actually know what you’re doing, or have a broker who knows what he’s doing. Sure there are tons of different aspects of it like options, forex, mutual funds, and all of that garbage, but when it comes down to it, can you really take $2k-$3k and turn it into $50k in a year or less? Very doubtful.

Many people seem to be under the impression that investing in high priced domain names is a wise investment. I’m not saying it isn’t, but it takes someone with a lot of brass balls to really dump a large amount of cash on something they think may resell for lots more over time, or may be that next big thing site.

See, the way I see investing, is very similar to making a bet or gambling. I like to win. I don’t gamble or invest just for the fun of it, nor do I gamble or make bets when I don’t have the upper hand. So why are so many millions of people investing their hard earned cash into the stock market for really low returns, and having the odds stacked against them? Probably because they don’t know any better or they are fine with making their 8% returns here and there over the next 20 years. But let’s face it, they won’t be making much with that attitude or by just going about their business and hoping their portfolio jumps by some act of god.

So how can you make at least $50k a year, consecutively, without investing in big domains or anything market related? Easy! Cheap .info or .com domains that are keyword rich oe niche rich. Before you comment here or contact me and tell me that I’m a retard for suggesting this read on for a bit and you’ll see why this theory isn’t some fast way to becoming a millionaire, but actually works. And yes, you do have to do SOME work to make it happen, so if you think there is going to be a magic button to press, it’s best you go elsewhere.

A while ago I had made a post about making a ton of sites adding adsense onto them, and just letting them rank and make some cash. Well, this is very similar to it, but it requires a lot less work and time, and it’s really a longterm investment, but a smart one at that.

As I write this, GoDaddy.com is having a $0.99 per .info domain sale. I haven’t found a cheaper registrar for these types of domains so you may as well use that.

Anyhow, the way I came up with this topic is because I’ve been getting some Adsense checks from one of my earlier accounts, and I was trying to remember where I put the Adsense ads on in the first place, and how the hell was I still making money from it? Turns out, in the Fall of 2006 sometime, I was mulling through my large domain portfolio and trying to figure out if I should just let them all expire, or actually do something with them. See, we all have domains we registered for some silly idea we never ended up using them for, or maybe a late 3am idea and you go and register 50 new domain names and by the next day think “yeah, I’m an idiot, that won’t work”. So you are left with all of these domains and they are just sitting around collecting dust. Instead of cutting my losses, I spent some time doing some work with them. Here’s what I did:

  • Installed WordPress onto every domain in that portfolio.
  • Looked around for some medium traffic keywords for that blog’s topic (nothing too competitive)
  • Wrote up a quick 3-5 sentences on the topic of the blog (to give to my outsourced article writer)
  • Created one article (well, actually I outsourced it) and put it up on the index page.
  • Stuck 3 Adsense ads onto the page (1 on the right or left side, and 2 in between the article).
  • Found some directories relevant to the topic of the blog/site, and submitted them
  • Looked for other blogs on the same niche/topic of my blog, tossed in some comments listing my blog site and a few others that weren’t mine as “reference” links so it didn’t appear spammy.
  • Started all over again with the next dormant domain

The process and time for each domain took about 2.5 hours or so if I wrote the article myself and did all of the grunt work myself too, and a lot less if I just outsourced it.

The point is, I was trying to pinpoint the cost per domain + cost for turning the domain into a blog and see if I would make anything from it. I figured, if each domain could make $25 or so a year, then it would be a huge success. Mind you I started to outsource it after the first 100 domains were done, because I was getting irritated by the grunt work and lazy too. Outsourcing it to someone in Eastern Europe cost me about $3 per domain. So my overall cost came to about $11 give or take per domain. I also used some verrrry cheap hosting accounts that came out to less than $150 for the year for all of the accounts spread across multiple hosts.

Confused yet? Yeah, met too a bit. But hear me out, because it’s only been 5-6 months since this happened, and it seems to be working, and the year is only half over. I’m already in the black! I think the best part about it is that some of my sites also have some good rankings on MSN and Yahoo, and very few on Google. But the traffic is trickeling in, and when I finally got my password for the Adsense account and checked it, I was pleasantly surprised to see that my old dormant sites were turning a profit.

Now, they weren’t raking in anything to what you would say is impressive, and hell, some of them weren’t even making a penny for days straight, while some of the others seemed to be picking up the earnings slack for the slower ones and earning a few bucks everyday.

The reason I like this is because it proves my volume strategies correct.. again. While I could have easily said, screw it, and just ignored the portfolio and let them all expire, I did some work on it and made them profitable. Enough so that even with the recurring annual registeration fee, I’m still going to be in the black for them. Granted okay, these are well over 2,000 domains, some of them on 2 yr registrations, others on 5, but most of them on 1’s. Most are .com’s, but some of the big money ones (big money for this is almost $8 a day revenue per domain) are really crappy looking .info’s. Kinda funny that the only reason I even checked into all of this again today was because I have to send my accountant all of my earnings, and I had no clue about this one, nor did I even remember doing it until I started to remember some of the domain names. Sweet!

But yeah, from this little test, I stand to make over $75k over a 12 month period MINUS all of the domain renewals and all of the other costs. Not too shabby though.

So what you should do is if you have some cash laying around, and were thinking of dumping it into the stock market. Stop yourself, just follow what I did (and don’t IM me about it please, it’s really super fucking easy to do on your own), buy the cheap domains. You can get 1,000 of them for $1k or so over at GoDaddy, and you probably don’t need the private-whois for this either. You can either go the reeeeeally lazy route like I did, or you can have it auto-update once every few weeks or so, and throw some more links to it as well, you’d probably make more than I did.

And hey, look at this, free info for ya, and you didn’t have to buy some cheap lying ebook to learn how. Seriously though, this is reaaaaaally simple stuff, and you should have no excuses now to at least apply this to your domains that are doing nothing right now. Do you have some time to spare? Probably. So go do it you lazy bastard! Don’t have the cash for it? Well, start saving. Treat this as your way of investing, except with this you have a hell of a lot more control than you would if you’d be in the market with it.

Alright, that’s it for now. If I see or hear about this becoming an ebook, I’m going to hurt you.

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Comments

  1. Ted
    March 11th, 2007 | 7:51 am

    I’m working a similar theory with fewer domains, and not relying on google so much as TLA

  2. March 11th, 2007 | 2:31 pm

    Just to add to this, I’ve already purchased another 3,000 new .info’s from GoDaddy over the last 2 days already. But only because they are doing this .99 per .info with free private-whois on 3+ domains, and they all renew at .99 too, so it’s worth while overall.

    I’m also curious to see how long this lasts for. I may also run one new update a year per domain with a new article just to see if that revives rankings and traffic or clicks at all.

    It’s a slow process and all, but if you play the volume game it can be pretty beneficial in the longrun it seems. Plus adding another $100k-$300k a year in profits for doing work on it once isn’t a bad deal at all.

  3. March 11th, 2007 | 2:34 pm

    I wonder… would it benifit you to use some kind of autogenerator for these domains? I mean: autogenerating interlinked websites, blogs etc to increase ranking in Google?

    i never believed in these things, but they keep coming back, and now i’m really wondering whether i’m not keeping myself blind or something…

  4. March 11th, 2007 | 2:39 pm

    Everest-

    You can try and do whatever you want really.. The reason I just did one article per site, instead of putting up my feed poster is because I could care less and just wanted a quick, custom solution without having to manage anything. It’s that whole “set it and forget it” theory that everyone wants to use.

    My method is the lazy man method, but I’m sure if you turned this into a full project, then it would be just like the ones we had running a while back, where we had thousands of domains running some blogger apps and had it self updating, and attracting a fair amount of traffic, but it was also set with earning $1-$3 per day per blog, so it required some management and tweaking, which is a pain in the ass and definitely a downside to playing the volume game.

    But hey, you can do whatever you like man. I’m just trying to show you guys that if you keep it simple and small, the returns can still be a hell of a lot better than any of the conventional things you may use.

  5. March 11th, 2007 | 2:52 pm

    I find it quite interesting to hear that you this is possible _at all_. As you’ve correctly guessed, i’m now “in” such a project… However, i still had quite some doubts, especially when it comes to getting the initial “spark” of users…

    Long story short: the project is now in “release-phase” and now i’m quite sitting back and seeing whether it goes anywhere…

    Mind me: we did not include blogs yet.

    Somewhere, i can follow smartest poster, as it is not that money is the most important thing in our lives, but then again, as you show, why not give it a try? We don’t hurt anybody with it, aren’t we? :)

  6. March 11th, 2007 | 3:23 pm

    Give it a few years and you’ll have aged domains that make money. Even if they are just .info’s, thats an in-demand asset.

    I would at least split the domains into 10 or so groups, get them on different IPs, different templates, and different whois (if not private), so the search engines can’t kill them in one swoop.

  7. March 11th, 2007 | 3:25 pm

    Andrew… I’m even lazier than that! I am doing it in 100 domain blocks, haha! 10 would be one giant pain in the ass for me, but for people who aren’t as lazy as me, it’s a good idea!

  8. March 11th, 2007 | 4:49 pm

    Won’t they cost $9.99 to renew? You’ll still make a profit of course but not nearly as much.

    I can’t believe you’ve picked up 3000 already. I’d better get a move on before you get them all!

  9. mattboy
    March 12th, 2007 | 1:14 am

    i used to do stuff like this, but the thing that killed it for me was the hassle of so many domains etc to track..

    the most time consuming thing i found was setting up the domains in WHM

    is there a quick way to do it, or do you do that as part of the outsourcing?

  10. knupNET
    March 12th, 2007 | 9:01 am

    Interesting article. You really think it’s necessary to get sites on different IP’s, server, whois??? What does it hurt to flop all of these on the same.

    Also, any benefit to applying a feed that updates with news each week? Or is that bad?

    Thanks for the article.

  11. ak47
    March 12th, 2007 | 1:45 pm

    Wait so on each site you just posted 1 article? that was on the main page and it was keyword filled? am i reading this right?

  12. March 13th, 2007 | 9:57 am

    It’s awesome. I am going to buy this .info asap and set up my ‘adsense killers wordpress vamps’.

    I like this ultra lazy way.

  13. March 13th, 2007 | 9:43 pm

    People have been asking me for this link to where GoDaddy’s 0.99 .info domains renew at 0.99 per year:

    https://www.godaddy.com/gdshop/registrar/bulkprices.asp?app%5Fhdr=&ci=5709

  14. 2kaday
    March 14th, 2007 | 5:57 pm

    but where do the visitors come from? if there is only one article that doesnt really drive traffic, right?

    isnt it quit costly to use wordpress for each domain since you need lots of MYSQL databases? or can one MYSQL handle several blogs?

  15. Cyberkiller
    March 17th, 2007 | 4:41 am

    How do you protect your adsense account?

    As in, do you log/track clicks to prevent losing your adsense account to the old general click fraud response from google?

    Doesn’t google ban sites with little content (MFA)? A blog with one article?

  16. March 19th, 2007 | 8:45 pm

    This method will and does work While i didn’t do this on large scale i did it on smaller more targeted and did about 10 articles on each site and now have some nice return on those sites for the year.

  17. March 21st, 2007 | 10:07 am

    Again, great concept & article fron Jon. I am start doing this and I prefer blog than static site because at least with blog I could do auto blog sometime. Thanks for Godaddy promotion..but I am having hard time to comeup with good domain. Can you share tips how to decide domain names since you registered 3000+ domains last 2 days?

    also, if you outsourcing, it will cost about $10k per 1000 site, correct? Can you refer which freelance site you used?

  18. robert455
    March 24th, 2007 | 1:17 pm

    What benefits does registering a .info domain have over just doing the same thing with a bunch of free blog sites? Is the SEO advantage gained from the keywords in the domain name worth it?

  19. Edwin
    April 3rd, 2007 | 10:53 am

    :) you shouldn’t have told me where to get those domains for .99 also in renewal…

    It’s time for a dedicated server…I’m at 250 domainnames and buikding a set and forget tool for wordpress so i’ll take your advice and pickup as much domainnames as I can (300 a month or so)

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