Or at least that’s what they’re saying this guy did.

He identifies a business niche or a hot growth area like commercial real estate. Then he buys domain names around the topic, saving money by shunning pricey domains for names with hyphens, such as http://www.commercial-property.co.uk/.

He builds the sites, adds content, and waits for customers. Search the phrase “commercial property” in MSN, for instance, and Carter’s site pops up on the first page, advertising that it has people eager to sell and buy commercial property. In truth, Carter has only a few contacts.

In more detail…

1. Identify an overlooked need for services kicked up by, for instance, relatively obscure regulatory changes.

2. Construct a first-rate website with a generic domain name that will draw in prospective customers.

3. With clients in hand, create the business, providing the service yourself or subcontracting to established players.

The thing about this is that it can work, and backfire. I mean, you could spend a lot of time building an audience and hoping that down the road you’re going to find a good referral partner. But what if you don’t?

I’ve always operated from the opposite direction. I first identify a good referral partner who pays what I consider to be competitive. Then I go and find out if the niche has room for growth and is broad enough, or small enough. Then, and only then will I spend time to develop something.

How do you do it?

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