Domain name trading is the art of acquiring domain names (otherwise known as website addresses) and selling them at a higher cost. The official term is domain flipping. This may conjure up images of buying houses to remodel with the intent of selling them shortly thereafter for a higher price. And you would be pretty much correct except that domain flipping does not require you to do anything to a website.
There are other similarities as well, some of which we will be touching on later, such as auctioning and building portfolios. To make this a profitable venture, you will need to learn the ins and outs of how to sell domain names. That is our task today.
Identifying Top Level Domains
How to sell domain names regularly for profit involves getting familiar with domains that are of value. Since unlike the real estate sector where you modify the house before reselling, it is the domain itself that is valuable. Therefore, when choosing domain names:
- Aim for .com extensions
- “Short and sweet” is the motto – one word is best but short catchy phrases are OK
- Avoid dashes and other complications, such as words that may pose a spelling challenge
- If you are patient or will be doing this for some time, capitalize on major events to come or a sector that is in its infancy now. This operates on principles similar to investing in startups that eventually become disruptors in their field.
Build a Portfolio of Domain Names
If you are serious about wanting to know how to sell domain names and do it regularly for profit, then build a domain portfolio.
3 Ways to Acquire Domain Names
- Browse our domain library to find available domains. You will find top-level domains guaranteed to help you get started successfully. Maybe you already have a domain name. In that case, register it with us.
- Domain ownership comes with an expiry date. While some owners may opt to renew the hold on their domain, all won’t. Known as drop catching, it is the perfect time for domain traders to acquire domains. To maximize the opportunity, register with a drop catching service that will keep an eye on the registration period for you.
- A third way to acquire domains is by engaging with the domain aftermarket. This option is for domains that are currently registered. You may choose to bid other interested parties for the domain name, or enter into negotiations with the current owner through a broker.
3 Methods of Advertising Your Domains
Having built your portfolio, you think you would be moving directly to learning how to sell domain names. However, just as with anything else for sale, you need to advertise your domain.
1. WHOIS Service
Perhaps the most subtle form of advertising is making your contact information public on WHOIS. WHOIS, also called domain privacy, is a database that houses the contact information of registered domain owners. While the database may be public, the contact information doesn’t have to be. That is why making your contact public is a recommended form of advertising.
Further information about WHOIS, including prices and the intricacies involved, speak to one of our support staff.
2. Set up a Landing Page
A more deliberate form of advertising is to create a landing page. This would advertise the domains for sale and your contact details.
3. Domain Aftermarket
Finally, you may enlist help to get the word out. Just as you used the aftermarket to acquire domains, you may use it to advertise your domain (which, if valuable enough, will result in a sale). And that brings us to the crux of the matter: how to sell domain names regularly for profit.
How to Sell Domain Names
The good news is that some of the same resources you used to acquire domains can be used to sell them. Already mentioned is the domain aftermarket, whereby successful advertising usually leads to a sale. The better news is that there are more options available to sell them, and you are about to learn about them. Let’s, therefore, start with the quickest way to sell a domain name.
Auctions are a quick way of selling domains, but try to reserve this method for top-level domains. Auctioning domains that have stirred great interest practically guarantees that you will be getting the highest price possible.
2. Direct Pitches
How you sell domain names for profit sometimes involves positioning yourself for buyers to come to you. In such instances:
- Keep an open mind. Do not be quick to dismiss the offer because you did not advertise the domain. Remember that your aim is to sell websites for profit.
- Do some research into the going rate for such domains before accepting an offer, or making a counteroffer. Overpricing the website may drive the buyer away while accepting too low an offer isn’t sound business sense.
Perhaps the complete opposite of auctions is direct pitches. First, you are the one being solicited. Second, these domains are usually more niche, such as geographically or industry-related domains that attract a much smaller buying market. Third, it may take some time to divest these domains.
Things to Keep in Mind
When you came looking to learn how to sell domain names, you pretty much had a step-by-step process in mind. For the most part, that is really what you got. But there is another angle. How to sell domain names: wisely, and legally.
Failure to conduct thorough research can cause you to fall foul of the law. Worse, you may have to surrender your domain name (domain forfeiture). This is the opposite of what we want to do. This may happen for various reasons, including scams.
Finally, you are strongly advised to use escrow when conducting your transactions. You won’t get all the money as there are third-party fees, but you get peace of mind which values more.
When All Is Said and Done
There are no hard and fast rules about how to sell domain names. What matters is knowing the stages involved, and exercising judgment as you proceed. As with anything, the more domains you buy and sell, the more your skill and confidence increase. However, more importantly, you will also hone your business acumen.
If you feel yourself losing patience, or motivation, remember that some of the highest selling domain names have been sold for upwards of $30million. Let us help you get started.