Making money on domains is pretty easy with the right knowledge and experience.  I will show you the ways that I have done and tell you what works and what does not.  Buying domains is a skill unlike most others, you need to be creative with keyword yet business minded with their long term costs and earnings potential.  This is developed through time and will become much easier once you get a little experience under your belt.

The key with buying domains is to keep them short, no more than two words, have a keyword in it, and to have it end with a .com.  There are more tips but when your starting out these are the most important.  I prefer godaddy as a name register as they are reliable and cheap.

After you have selected your domain name, you are going to want to park it or make money from letting a domain site put ads on your domain.  Most will put  some generic looking ads on your domain and you will get very few clicks, so I suggest you put then at a parking service like domainembarking.com.  They will put videos, script and ads on your domain but it looks just like a information web-site, its incredible.

Once you have your income stream set up its time to place your domain names for sale and on auction.  You may be thinking why would I want to sell my domain now that its earning income and the answer is profit.  You can buy more web-sites and do the same thing again so there is no reason to keep a domain unless it has a very good name or is getting tons of traffic.

Now you are in business and using every possible way to make money from your web-site.