There are several reasons you may need to purchase multiple domain names, each with it's own benefits.
It is also a good idea to secure alternate versions of your primary domain name as a means to prevent competitors from trying to squeeze in on your name and branding efforts. Buying multiple domain names is a great strategy that can be used to capture additional type-in traffic, secure other branding avenues you may wish to pursue, or simply to prevent your competitors from securing them.
Type-In Traffic
Many URLs are purchased simply to capture type in traffic. Type-in traffic is when someone goes to the address bar of their web browser and types in keywords.com instead of performing a keyword search on a search engine. Securing domain names with a fair amount of type-in traffic can be a great boost to sales. If you sell Western or Cowgirl Jewelry, your main URL might be CowgirlJewelry.com. To capture potential type-in traffic you might also secure and redirect the following:
*FunkyJewelry .com
*HauteCowgirlJewelry .com
*ChunkyFunkyJewelry .com
Misspellings It is always a good idea to secure potential misspellings of your domain name.
*TurquoiseNecklaces.com
*TurqoiseNecklaces.com
*Turquoisenecklace.com
Along with misspellings you should also consider purchasing plural and/or singular versions of your domain.
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