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If you want instant traffic buy abandoned domain names with traffic. Make sure that your site niche is relevant to the site running on that domain name.
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I totally agree with you on this. In fact, I used to buy many of my domains this way. I would watch the drop lists and check link popularity, then wait for the drop date for the ones I wanted and bought them.
It worked perfectly because I found plenty of names in my niche. But now, I can't do it anymore. It seems everything is on back order or picked up by massive companies using software to get the names before anyone else.