Getting started in the domain name speculation market is a tricky business. Of course there are stories every day of people selling Domain Names for thousands of pounds, but domains which are worth that sort of money are few and far between.

The main problem for newcomers to the domain speculation business is that they often fail to do their research and waste money on worthless names. After a while, their morale is low and their wallets are considerably lighter than before they started. Others get caught up with trademark infringement issues, winding up getting sued because of brand dilution or cybersquatting. Some are even unable to finance the renewal of their domains, especially when they buy hundreds or thousands of names, and lose their investments that way.

The best way to start is with just a few domains: maybe only 25-50. Pounce on three-letter or generic names if you are lucky enough to find them. Avoid TLDs other than .com until you know the industry well. Four-letter combinations might be worth buying; use your own discretion.