You don’t have to be rocket scientist to see just how one domain name is worth millions and another one similar could be worth next to nothing. Let’s take for example two similar domain names like Beds.com and , which are virtually the same but Beds.com is a goldmine whereas Bedsx.com probably loses money.

Keyword domain names become profitable investments if you follow these 6 golden rules and you must read them before buying your own domain name. It doesn’t matter which route you take to buy the domain name, good investigative work will guarantee a winner when it comes to selling.

1. Keyword volume: Keyword research is step one for finding a good potential domain name. Popular keywords get traffic so check out your domain words on WordTracker or Google Adwords, so you can see just how popular your keywords are. There are several tools you can use; which may give differing results, but you will soon get the idea and you will feel confident in choosing the keywords that will result in good traffic.

2. Commonality: A lot of people say domains are valued on their scarcity, but if you think about it, all domains, both good and bad, are one of a kind. What I like to look for is the commonality of the phrase the name represents within our society and existing lexicon. Usage, word order, and pluralization are huge factors in valuation. For example, “Discount” is not the same as “Discounted” which is not the same as “Discounts.” SportCars.com is valued less than SportsCars.com, and ShoesRunning.com is practically worthless when pitted against RunningShoes.com. Search for the phrase in quotes on Google to see if people are even using it, much less searching for it.

3. True type-in traffic: Most people always rush into domain investing and are not able to get this type of information to guide them first. Type-in traffic is the key to success and we need long term traffic, so don’t pay any attention to search engine or link traffic as this won’t last.

4. Length: A further important consideration is the domain length. Short domain names will get better results because they are a lot easier to remember and spell and would convert into loads more traffic. Branding domains with takinf these important factors into account will increase drastically the domain name value which is great news if later sell your domain.

5. Prior use: If the domain has a past life, and was acquired through a drop service or from an expired list, you want to know about it. Forget perceived positives like search engine ranking and PR since those will likely disappear after the name is in your hands. Instead, delve into the name’s dark side. Was it ever used for spamming? Is it banned from Google’s index? Did it previously contain questionable content? Overcoming these negatives can be more work than you bargained for, even with an otherwise great name.

6. End user development potential: Domain names have a certain flexibility that will develop them into major money winning sites and after having read this guide, it is down to you to make the decision on whether the domain words will help you hit the jackpot. Read more to find out more domain investing tips that will put you just way ahead of the rest.