It May Be Cheaper
You may have a knee-jerk reaction to disregard the possibility of purchasing a "used" domain name. Maybe you think that buying a domain name that has previously been associated with another project, one perhaps very different from what you will be doing, can hurt your own interests. Maybe you think that purchasing an expired domain name will lead to confusion and a stream of visitors who feel jilted when they arrive at your website expecting to find the content they had previously enjoyed. While these things are possible, they are also indicators of why, exactly, it can be significantly cheaper to buy an expired domain name.
Do not be fooled- it can be significantly cheaper in the long run to invest in an expired or expiring domain name if you do your research beforehand. Registering a domain is not that expensive, and there are plenty of hosts out there that make registering your domain easy. There are some problems though. For example, what if the domain you want is taken? What if you know of a domain that you would like to have for your own, but you know for a fact the domain is taken? Well, check to find out if the domain is expiring any time soon- if it is, then suddenly you have the opportunity to pick up that domain. But even if the domain is not necessarily one that you know you want, if you find a domain that interests you then buying an expired domain can be a brilliant investment.
See, buying an expired domain might be a little more expensive than registering a brand new domain, but under the right conditions buying an expired domain can be more of an investment than starting from the ground up. The previous owner of the domain may have put quite a bit of hard work into getting their domain's name out there. The domain may have a nice Page Rank, it might be in databases across the web, or it may be associated with any other number of features that push the domain towards the top of a list of searches in a search engine. Ask yourself: is it worth a little bit of extra money for your website to come onto the scene already near the top of a search engines results, or would you rather start trying to build a domain from the ground up, investing time, money, and energy into a domain that still has to scratch and crawl through the ranks to get any sort of recognition? Do your research on a domain's past and how it was received- it may just be the best investment you'll make for your business.