It is a simple fact that some very valuable domains have been purchased and sold over the years and if you are just coming into this marketplace you will encounter people who do this full time. The dot com extension is the most valuable and the one word type of domains are long gone in terms of availability as they are for the majority of the others such as dot net and dot org. However, there is still very good money to be made if you understand what you are looking for and this requires you to get acquainted with the marketplace.
In looking at domains that can be sold on for a profit, those made up of just a few letters can bring a good price and the fewer letters the better it is. As more social network type sites appear, these type of domains can turn out to be very marketable as they can create an unique and original sounding name. It is obvious that the combination of letters should have some meaning to them or sound as having some potential. You should begin to get an instinct for what is right here and by researching what actually sells and for what selling price, your understanding of what generates interest will increase.
A second kind of domain is what is known as a key phrase name and if you have done any kind of keyword research you will know what this refers to. Exact searches for specific keywords is what we are interested in here and this is something you probably already do with free or paid software online. If a particular phrase has a high exact keyword count and that exact domain is available it could be worth registering. The dot com will always have the most value but is the almost certainly to be unavailable and so dot net and dot org can still be a good investment. Domains in several markets have greater value than in others and you will obtain a feel for this as you become more involved in the process.
Country code domains including the United Kingdom are turning out to be more popular to make an investment in. It is conceivable to unearth domains that you might not come across for the main domain extensions and this could turn out to be profitable. If you keep an eye on the market, you will discover that you are much more aware of where the value is. Sedo is one of the largest sites online for marketing domains so you need to see what goes on there and become a member of a forum like NamePros or DNForum.
Domain flipping can increase your profits online as long as you commit some hours gaining the know-how you need to trade successfully.