Hmm... I need to find out myself. I don't know what is the right answer. I'll do some research and get back to you if I bump into an good answer. You should email the people at Godaddy as they probably can help you..

Invest in generic .coms that receive pure type-in traffic and revenue per month. No trash domains. I'm talking about bottle.com, speaker.com, etc. You don't have to do anything but park the domains and watch as revenue comes streaming in and the value of your domains appreciate 3-4x in the next few years...

If I were in your position as a passive investor, I would develop a double prong strategy consisting of 1) a highly effective drop catch system and 2) auction purchases (AfterNic, etc.) as suggested by Fonzie above..

The "system" that I mentioned is one that produces a summary of the most valuable deleted domains, determined by analyzing certain variables (such as popularity, backlinks,.

PR.

, etc.). I would receive the report daily and place my bids accordingly..

As an active investor, I would develop all my domains with the intent of building traffic while looking new domains to build my portfolio..

...Hey, that sounds like what I'm doing now!..

Definitely sit on them for awhile. I would probably just park them, or maybe develop a few of the better ones. Cashflow is always nice but I would be most interested in just hanging on to them for awhile and see what happens in a few years..

As far as a drop catching system, doesn't any decent name that drops go to auction and you end up paying "fair market value" anyway? Meaning if I only want to buy 10-25 premium domains I could probably skip the whole drop catching thing and just focus on making offers at GoDaddy and Afternic, etc.?.

I mean, if a name is worth xx,xxx and it drops, tons of people will have backorders for it and it will go to auction and the winner will most likely end up paying xx,xxx for it - right??.

It seems like drop catching is more useful with inexpensive names i.e. you can grab a name for $20 or $60 etc and maybe sell it a month later for $100 or $200 etc. but I don't see the same thing happening with the higher end names.....

Drop catching is tough..

I'd buy a few quality generic domains for $10-20k each, develop them - even if it is just info informational sites with adsense. Wait a few years and flip for 2x +..

I agree. The big names are usually sold at fair market value and higher. Just look at A1.com, or even actionsports.com, which sold for $50k a few days ago. For the most part, finding undervalued high profile domains via drop catching is not going to happen. However, I think the value with drop catching is finding small domains that have built in traffic...

I would suggest you hop on Great Domains and check out some of the domains. You can see what the asking prices are for those high-end domains. Then, scope out similar HostGator names through people's WHOIS contact info. You can then offer these people about 1/5 -1/3 of what their asking prices would be if they were listed on GD. You may find that some of these people will bite on your offer...

I would suggest you to buy my portfolio....

This is the laziest way to get into this biz.....

If you had xxx,xxx to invest, what would YOU do with it?.

I will buy more domains for $9.99 from my hidden list and then wait as it will give over 800 times return in a year...