Domain squatting is when someone buys a domain name just to hold on to it or to put ads on it, as apposed to using  the domain to host a real website. These people are the  enemy of webmasters and web designers everywhere, however, they are really smart, investors who try and predict future trends and can make a lot of money. These people risk their investment, although only about $10/year, and they are several methods of monetizing a domain with very limited work. The first method is putting ads on a landing page where people would be presented with ads, these advertisements give money to the domain owner everything someone clicks on it. This revenue can be used to cover the annual cost of the domain and since domains are only $10/year,  depending on the domain name, there is a good chance of making a profit. An other option is if you can find someone who is interested in buying the domain name, then you could make a lot of money off of something that cost you very little to buy. For example, Digg bought the domain name for $1000 and made the original owner a lot of money just because they put a little bit of money up and took the risk and in the end, they reaped a great profit. Even if your domain does not sell, then you just have to pay another $10 for another year and you could even make more money on advertisements over time than you would selling the domain.

So, this sounds like a good idea so, I will now explain how you can do this and how you can make money by squatting domain names. First, see what is a growing trend, but not extremely popular so that the domain may still be available. The next stop is to buy the domain, just sign up with a web host and buy the domain. From there, you just need to setup ads, many hosts have a parking feature where you can select a domain and automatically add advertisements to the domain names. If for some reason your host does not have it, then just create a HTML document and save it as index.html. Then, just sign up for Google Adsense and copy the ad code into the page. Once you have your squatted domain setup, then you just let the ad revenue roll in and maybe even a potential buyer will  make a great offer to buy your domain name.

Although domain squatting is not a guaranteed  investment, that will make you rich, however, if you have some money bring a hole in your pocket, you may want to look into domain squatting  because if you can find the right domain, you can find the right domain, then you could make a lot of money.