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Buying domain similar to existing domains

I'm guessing similar questions have been asked before, but I'm wondering if there are any issues with a scenario like the following.

A website already exists called 'business.co' or 'business.com'.
What are the pitfalls of buying the domain 'business.co.uk', with the express purpose of trying to resell it?
Does it make a difference whether the site is populated with content?

I'm not talking about trying to sell it on to the company who owns the original name - I'm just talking about adding it to the Auction Listing because it's got a good keyword in the name.

Thanks for your help.

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Super User I Super User I
Super User I
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Re: Buying domain similar to existing domains

I've seen the strategies of developing like domain names to sell to competitors, domain owners and others @jb777. While it is a strategy, I don't know if it is the best strategy? You can certainly use that method but I have also seen it backfire.

 

Domain holders with copyrights might be able to wrestle the domains away from you through legal action or worse yet block you from selling the domain you purchased. Be also aware that a simple letter or email to some domain markets might get your listing taken down. Even if it's just intimidation or harassment to the buying pool you might get stuck with a domain you intended to flip?

 

All of that being said in the past I've had success purchasing slogans, developing the domain and selling to the company owner of a primary (target) domain. Using your business.com example say their latest marketing slogan was "better business now" I would purchase betterbusinessnow.com and develop a website on it. Typically I could get my domain ranked higher in search engines than the target domain (depending on their SEO budget) and make it an appealing purchase. 

 

If someone sees value in a domain they will purchase it. I hope that helps? 

 

...turns out that my two cents is worth less or more depending on the current exchange rate.

roy darling *my posts seem a lot shorter in my head

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Re: Buying domain similar to existing domains

That's really useful @rd, thanks.
It was more or less what I was thinking, and your idea about getting a domain to rank as high as possible is exactly what I'm trying to do!
Appreciate you taking the time to respond.