Ready to start buying and selling domains? Read on.
Domains are very valuable digital assets, they can be bought and be sold just like other properties. While some domains cost less than a $1 dollar, some cost well above $1,000,000 US Dollars. Learn more about the value of domains here
With the current ever-increasing use of the internet, the appetite for good quality domains is on the rise. This brings a business opportunity through which you can make money. There are three ways you can make money with domains. Choose one method and work on it. The choice is yours:
- Re-sell Domain registration and related services
- Register and sell domains
- Buy and sell domains
1. Re-sell Domain registration and related services
In this case, you can establish a business whereby you resell domain registration services and off-course, offer some related services like reselling SSL certificates and hosting services among others. You get a ready platform made for you from your parent company, then you sell the services with your own pricing under your own brand name. On how much you can make depends on how many customers gets your service. For instance, you can buy a domain at a wholesale price of $5 then resell it at $10 that means you will be making a profit of $5 for every client you serve.The more clients you get the more the profit you make. The advantage of this method is that you will get consistent earnings from your loyal customers over and over. The disadvantage is that you will require substantial investment (we recommend a minimum of $1000) before your business would break even and make you the first dollar in profit. Mainly, you will spend a lot of your budget to acquire new customers competing with even your parent company and you have to deal with offering customer services from soft to technical aspects which not many may be familiar with. Learn more about Re-selling Business.
2. Register and Sell Domains
(Recommended & most popular method)
In this second option, You register a new domain then list it for sell. It is relatively easy to register for a domain name and the risk is less. The cost of registering a domain name in most web hosts is $10 or even less. After you have registered the domain name. You then list the same domain for sale either through auction, fixed price or by use of brokers. If you need to sell the domain at a much higher price, then you will have to consider adding value to it like staying with the domain for sometime (domain value increases with time), increasing its number of users and increasing its visibility in search engine through search engine optimization.
For example, if you register a domain whose market valuation is $1000, You can easily auction it at 10% of that price immediately which will earn you a minimum of $100. The key point here is creatively coming up with a high value domain name. then auctioning them cheaply. Read here on how to valuate and come up with domains of higher market value.
The advantage of doing this is that you can make a sale fast when you sell your domain at a reduced price (below 10% of its current market valuation ) Usually between $20 -$199 for domains whose current valuation is $1000+. The disadvantage is you will get less money. Someone will buy it from you, add some little value to it then sell the same domain at $10000+ in a year or so. The choice is all yours.
When registering the domain that you intend to sell; keep in mind this four golden rules of the game;
- Always stick to .com domains. they are more reputable and generally accepted globally than any other domain tld.
- Always register English domain names with four or less letters. Never go beyond six letters. Shorter domains are more valuable than longer domains. ( I bet, you will find that most of them have already gone or are being auctioned/sold for thousands of dollars by your competitors to be) don’t worry if you find your desired domain is gone. Just be creative around it and that’s why you may also never want to sell your domain name at a throw away price once you find one.
- Never use hyphens, underscores and integers (numbers) in your domain name thou doing so makes your work easier; it will de-valuate your domain and make your domain ugly. making it hard for you find a buying customer.
- Always check the domain valuation and popularity of the keyword in your domain before registering. don’t register domains with valuation of below $1000. Remember, your clients too will use those same valuation tools to make purchase decision so it is good they find that value higher than your quoted price. that way they will quickly feel that they are getting a deal.
3. Buy and Sell Domains
The third and last option available is to buy and sell existing domains at a profit either within the same domain market or in a different domain market. In this case, you will just be hanging around the domain market off course with a lot of money. If you see a nice domain being sold. You buy it and then list it for sale either immediately or at a later date at a higher price. You can also take the purchased domain and add value to it then sell it at a much higher price.
As mentioned in method two above, there are so many people who own some nice domains but because they want quicker cash , they are ready to sell their domains at a throw away price. Such are domains you can buy, and then sell them at their real price (at a profit)
The disadvantage of this method is that it requires that you have lots of money to buy existing premium domains.
For example, you can buy a domain that cost $80,000 and sell the same domain at $150 000. Similarly, you can buy a domain that cost $100 and sell it at $200 . What matters is you sell it at a profit.
Why do people buy premium domains at a very expensive price when they can register new ones cheaply?
There are two main reasons which makes people to spend lot of money on premium domain rather than registering new domains at a fraction of the cost.
1. Business Image and Credibility
If a domain name can boost your business image and credibility, then you have no choice but to get that domain that will help you achieve this. In this case, even a one day old domain can be sold at $1000,000 or even more. It all depends on willing buyer, willing seller agreement. Things like domain traffic and age have little role play here.
An example at hand is when the company facebook.com bought a domain fb.com
The domain fb.com was initially registered by a different firm by name firm bureau. But since facebook really wanted the domain fb.com for use with its services. Facebook had to pay more than US$400 million for the domain just to bring out that image and credibility.
2. Traffic and user numbers
The second reason is, traffic and domain user numbers. Businesses understand one thing. The more users you have the more profit you make. Online companies like Google Facebook Amazon etc make a lot of money due to there large traffic and large number of users of their services. If any of such domains were to be put up for sale, the domain alone would cost not less than $10Billion each and customers would que even with higher offers. Why? these domains are known and trusted by billions of users worldwide hence they are very valuable.
Your domain also can become very valuable because of the number of user it has. As much as you may not be having millions of users daily, you can have at least some thousand of organic users daily usually from search engine, social media or direct sources. This can make your domain to be worth well above $10,000+ and the domain will easily attract non bargaining customers.
Mostly, people buy such domains and then sell the traffic to other sites as re-direct traffic to their own site if the domain keywords are related.
KEY SUCCESS ADVICE
When creating domains for sale, have the two factors in mind, short nice looking domain with popular keywords sells faster and at a higher price.
Domain traffic numbers strongly influences the price of a domain. As much as age is a factor, it becomes even a stronger factor when it has traffic in it.
READY TO START THIS BUSINESS?
There are only two steps:
STEP 1: GET YOUR DOMAIN
You can Register a .com domain cheaply then proceed to step two. or you can go to domain market and buy a domain that has high number of bids (high number of bids shows that the domain is on higher demand) then proceed to step two once you have bought and own the domain.
Domains can cheaply be registered by web hosts. Choose one of these great web hosts that we recommend for this business.
Choose a web host and Register your Domain Names Get Started
STEP 2: LIST YOUR DOMAIN FOR SALE
Go here and list your domain for sale. you decide the price and how you want the domain sold there are three ways.
a) Sale by fixed price: You decide a fixed price for your domain. The advantage is you will sell your domain faster than in auction but you will likely sell it at a lower price. It will also take longer for you to get a customer if you over-price your domain.
b) Sale by Auction: You can auction your domain. just set the reserve price (minimum price) and let people throw in their bids then release the domain to the highest bidder. The advantage is that you sell at maximum possible market price since the bidding may go on to prices you never tought. On the other hand, the disadvantage is that it takes longer to keep waiting for those bids. Tip. don’t just set an arbitrary reserve price. Instead, just put your domain for sale (as ‘Make Offer’) then use your first bid to be your reserve price.
c) Use a broker: Brokers are people who do the trade for a commission. You can request for a broker to sell your domain and then give the broker the commission for the work. If you do not have the negotiation skill or you have no idea on selling domains. why not let an experienced broker do the work for you? Again, Do not overprice your domain. Just allow the market forces of demand and supply take charge.
Hit the button below and sell your domain. You will get money when your domain get sold.