I have a couple of domains but only really use one of them. I bought a second one with the intention of using it but I haven't gotten around to it. My third domain is basically just gathering dust too. Why do people buy up a lot of domains? I don't understand this at all. I have read that you can develop a site and then sell it for a profit but doesn't that take an awfully lot of time? Guess you can tell I'm a domain newbie.

Firstly, let me say welcome to DomainingSource

As for your question:

Multiple domains are boughten so people can either:

A.) Develope the site
B.) Develope then SELL the site
C.) Sell the domain

There are many premium, non register domains out ther, you can register one for $10, then turn around and immediatley sell it for $50. It's just all part of the domaining game. But don't feel bad, everyone starts out here

If there's something I can help you out with further, PM me and let me know

Hi DebacleX and thanks for answering my question. After I asked it, I did some reading on the site and found out that people really do buy and sell domains and make money doing so. I plan to do more reading because it sounds like it could be a fun and profitable thing to do. I'm wondering how you figure out what domains to buy and what you might be able to sell them for. Sounds like a lot to learn.

I'd advice you to buy as many LLLL.coms as possible (even the cheapest ones). Their prices are not only increasing dramatically (well, sort of) but they sell really fast. In fact, I just made a 200% profit the a few days ago selling the worst combination possible. You can't go wrong.

You can also try registering for catchy 5-letter .coms you feel other people might kill to have.

Well I used to buy domains without reason too. Later I realized that I'm more into developing domains that re selling them. So now I try to be careful when i temp to buy a domain.

Each Domain is 100% unique.
If you have a great idea, or fall onto something YOU have faith in,
Then it only makes sense to register it.
As long as you can afford to lose THAT money,
then it is ok!
As we learn more and more the newer domains you pck up
should be more and more valuable!
So, as a creative outlet, and investment,
thats my reasoning!
Good Luck,
Red Rock!

With a domain name like ozzieblackcat.com, I don't think I have to worry too much about competition. I didn't give a whole lot of thought about what I was going to do with my site when I bought the domain name. If I had it to do over, I might have chosen something that indicated what my site is about but, I didn't know much at all when I chose this one. At least it's different and people do tend to remember it.

If you register a good domain and let it age, it can earn you money in the future.

Also, the more domains you have, the more revenue you'll earn if you park them.

You have to know that now, with the domaining world being so competitive you're unlikely to pick up an available name and sell it for more than $100 (excluding LLLL's etc, but they're not guaranteed).

if you want to make money with domaining now, you're going to have to do any of the following:
Register LLLL.net's and hope the prices do pick up nearer the buy out.
Register Brandable domains, youtube.com once started out as a domain worth reg fee and look where it is now.

Once you've started making money from those sort of domains, you can start buying from resellers Dictionary domains and then once you're making a profit of them you can move up and up, eventually selling LL.com's for $20,000 ;D

If you have capital to invest already, you can go straight in and register LLLL.com's Dictionary.com's etc, but there is a risk you can lose a lot of money.