Be Very Picky About Your Domains

They have to either get good type-in traffic (existing domain) - or have the potential to - or they should be something that could possibly be branded.  But watch out for existing trademarks; check for them at the USPTO.

Short pronounceable names are all taken and usually their owners are selling them for thousands.  That might sound great, but that kind of income is never guaranteed.  It all depends on the end user finding your name and valuing it as much as you do.  It can be a bit of a gamble, which is why you need to control yourself and start off small.  Don't be afraid to drop a name that isn't doing well: either not selling or not earning any parking revenue.

Some short acronyms and pronouncables can still found for under $100, or whatever you find reasonable, and I've even snapped up a few good ones for less than $20 a piece.  But be careful of those acronyms that current companies already use in their business names.  I wouldn't expect it's very nice to be sued.  If you find one that's not already trademarked (you better at least do some preliminary research) and it could possibly stand for something, then you might want to take the plunge...but only if it doesn't break the bank.  I've set aside an account specifically for domain funds.  When it runs out I know to stop spending.  This is extra money that I would just be using for splurging on myself.

A word of warning: I would say that this extra money should not go towards backordering domains in the beginning.  At least for me, it's not worth it.  The fees vary by service and the name will go to auction if more than one person is interested.  It is not first come first serve with any of the services, as far as I know.  Read about the fees and procedures for backordering at NameJet, Pool.com, SnapNames (at NamePro), and GoDaddy.  You can also use a domain broker, but that's even more expensive.  The services have standard fee plus commission if they can negotiate a sales price.  Use one of these if there's a name you absolutely must own, not something that you just like somewhat, and that you know is worth more than what the owner is doing with it.

Whether you buy an already existing domain or hand register a new one, be it short and easy to pronounce, brandable, or a long-tail keyword domain, make sure you do your homework.  Don't snap up every affordable name in sight.  Be selective.  Do your research.  Does the domain have any backlinks or traffic of any kind?  You can check Alexa, StatBrain, Quantcast, Google Ad Planner, Compete Site Analytics, and Google Trends for this.  They all give a general guideline - and many domains you'll buy at the start won't have much traffic history at all - but the only true statistics you'll get are with your own stat counter, such as Google Analytics, after you've purchased the domain.  So be absolutely sure the domain is worth your time and dime.

And like anything you buy, comparison shop.  Make use of that GoDaddy Marketplace watch list eye icon, or whatever it is on which ever registrar you're using.  Narrow your search to a category - for example, games - then search that list by price, expiration, extension, or a multitude of other attributes.  Easy.

Happy hunting!  Please remember to eat, bathe, and sleep as this does get very addicting.  It will take over your life.  And you may even blog about it, which monopolizes even more time.