6 Tips to Buying and Selling Domain Names for Profit?
Buying and selling domain names is a profitable business that you can run from the comfort of your own home.
However, many people get trapped and take the wrong path, which leads to disaster. The same is valid for buying and selling domains.
In today's online world, domain names are in high demand. The selling of 'voice.com' to for $30 million in 2019 might have set a record, but even longer domain names regularly sell for hundreds of dollars every day.
As a result, investors have a one-of-a-kind opportunity to invest in domain names to profit in the future.
If you're new to the online industry of buying and selling domain names, you should be aware of the following:
How to purchase a domain name?
Where is the best place to buy domains?
Where can I sell domain names?
How to sell a domain to a buyer?
How to do domain valuation and set a price?
Consider trademark and reputed brand issues!
To get started, you'll need a small initial investment. You may have heard the news about domains bought for a low price a few years ago and are now being sold for millions of dollars.
You'll have to float in the vast domain ocean. You may find it challenging to make money, and you may spend time and money on the wrong domains. To run the company solely, you'll need a proper plan or a guide.
6 Tips for Buying and Selling Domain Names for Profit
Here are some tested tips to get you started in the right direction when trying to buy or sell domain names for profit:
- Narrow your focus.
- Find domain names that offer real value for money.
- Check domain availability.
- Evaluate the domain price.
- Make your domains visible to the general public.
- Resources needed to do business.
Let's deep dive into each of these tips.
1. Narrow your focus
When you buy a domain, you'll see that millions of domains are already registered and an infinite number of combinations of valid domains to choose from.
There are hundreds of new domain extensions, such as .club and .app, added to the mix.
If you want to resell a domain, you should narrow your focus.
To make your job easier, you can remind yourself about the things you already know. Do you have any experience with pets? Do you have any experience selling cars or houses? Do you want to work in education or healthcare?
So, think about the fields that you are familiar with and begin there.
Developing a Strong Domain Portfolio
It may take months or years to construct a high-quality domain portfolio. Looking ahead to what domains can become common in the future and hedging with numbers by buying hundreds of domains is frequently the key.
Others opt to buy a few already well-known domains and hold them to the hope that their value will increase over time.
Generic domain names
Investing in words that define a product or service, especially new and emerging products, can be a wise decision.
However, any copyright or trademark disputes that may result in domain forfeiture are essential to prevent.
Names of Places
Names of cities or countries, especially up-and-coming locales, can be excellent long-term investments.
You can sell these domains to web developers looking to create community portals or other businesses based on those locales.
Names of Companies
When paired with geographic names, generic business names such as dentist or chiropractor can be excellent investments.
Event and Timely Names
When paired with activities that arise in that year, such as 2022OlympicPlayers.com, timely names can be excellent investments.
Few things to avoid in buying and selling domain names
Never approach potential customers based on their financial situation without first researching the market. You may believe that lawyers are influential and that you can begin selling domain names to them. So you rush out and register a slew of domain names that you think would cater to the law firms you've identified as potential buyers.
You may not be aware that the Indian Bar Association and other industry-specific organizations have established rules that govern certain aspects of legal advertising if you don't know anything about space. By offering names that your target customers won't be able to use, you won't be hitting gold.
Instead of buying domains because you think it would help someone in an area you don't know anything about, keep your attention on the fields in which you are well-known and see how good you can be.
2. Find domain names that offer real value for money.
You'll need to figure out how to make the domains you buy valuable assets for the buyer. Find someone who would profit from purchasing the domain in a space where you are well-known.
Consider yourself a client, and someone is offering you a domain name. Will it be helpful to you? So be truthful. If this is the case, then why? Why isn't this the case?
Let's look at a real-life scenario. Assume you have extensive knowledge of the cosmetics industry and are offered a $100 discount on an e-store such as cosmetics.com. You might consider this a good deal if the store has a large selection of cosmetics and cosmetics turnover is high.
Consider the following questions:
What is the profit margin for the store owner per product?
What types of domains do your competitors, retailers, and other businesses use?
Is advertising a priority for them? If so, how much would it cost?
How much would the chosen domain assist them in projecting authority in their market?
If you know the answers to these questions and have a thorough understanding of this niche, you'll know whom to contact and how to make this domain persuasive to help the company grow.
3. Check domain availability.
You've already set a cap on the names you're most likely to purchase. But, once again, how do you locate them? To begin, determine if the domain names are eligible for purchase as new registrations.
If the names you want are already registered, look for them on the aftermarket and purchase them from people who own them or who have let their domains expire because they no longer intend to use them.
You can check domain availability from reputed web hosting providers.
The domain search feature will help you quickly narrow down the types of names you're looking for. You can filter the results by price, top-level domain (.com,.net,.org,.club, and so on), keyword, and various other factors.
With advanced features, you'll be able to quickly sort through the millions of domain names available on the secondary market and find the ones that best suit your needs.
4. Evaluate the domain price
If you've decided on buying a domain name, you'll need to consider if the price is reasonable.
Make sure the domains you want to purchase are reasonably priced. Setting the price, auctioning, and making a bid are the three most popular techniques.
Setting the Price: If you aren't going to sell your domain names right away, you should select a specific price for them.
Auctioning: Use an auction strategy to sell your domain name to the highest bidder.
Making An Offer: If you own a niche domain, you can make deals with potential customers interested in purchasing it.
5. Make Your Domains Visible to the Public
There are many sites where you can list domains for sale to the general public. But first, think about the following:
Is the location reputable and well-known?
You should feel secure knowing that you will be billed and that the buyer will obtain the domain name for which he has paid.
The buyer would easily click the button to purchase the domain and trust the domain seller's brand.
When selling domains, it's critical to establish visitor confidence in your brand.
Is the distribution network well-established?
A crucial factor is the ability to get the domain name in front of the right buyer. List your domain with a well-known distribution network to ensure that it is seen by millions of potential buyers every month.
Identify the users who will profit from the domain name. Make contact with them to see if they'd like to use the domain. If you work in a specific domain niche, you should know how to present your domain name's value proposition to a prospective buyer.
Sending spam emails is not a good idea. Instead, talk to people you meet who would appreciate the opportunity to own the domain.
Selling a great domain name for a profit rather than putting it in front of a potential buyer is akin to discovering a pirate treasure map and framing it to maximize the charm of your living room rather than pursuing it to locate the treasure.
6. Resources needed to do business
There will always be a learning curve when purchasing domains for resale. Ask a lot of questions of those who have taken the first step, participate in forum discussions, stay on top of industry developments, and contact our support team for more details.
Attend conferences to acquire expertise and meet other professionals in your field rapidly. You will also get a sense of the tools and services available to you from various niche vendors.
These factors will help you make more informed investments and get the most out of your time and resources.
Some domain aftermarket places you would be interested in
- Flippa Marketplace.
- Sedo Marketplace.
- NamePros Forum.
- NameCheap Marketplace.
- Efty Website.
- eBay Marketplace.
- BrandBucket Website.
Bonus Tip: Try sedo to buy and sell domain names and participate in the domain aftermarket.
Let us know what do you think and your good resources for domain buy or sell business.