Flipping domains

In addition to flipping, domainers have other ways of making money from their investments. Most domainers post ads on their Web sites, which can generate a decent monthly income. And Jackson says more and more domainers are teaming up with Web developers to create their own online businesses.

Then there are even more creative arrangements.

"I've leased a domain to the president of Spain," says Adam Dicker, a domainer who owns DNForum.com, a site where domainers chat about industry trends and sell domains to each other. Dicker says the Spanish premier José Luis Rodríguez Zapatero rented his domain, zp.com, and used it as the homepage for last spring's presidential campaign. Maybe it helped. Rodriquez Zapatero was re-elected. Notes Dicker, "And he paid a good buck."