Who doesn’t want to earn good profit in any business? Of course all do want to. But many get stuck and follow the wrong track, ending up into a disaster. Same is the case when you do the business of buying and selling domains.
To buy and sell domains is a great business that you can do from home just by being online. In case you are new to the online business of buying and selling domain names, it is important that you know the below things:
- Best place you can buy the domains from.
- Places to sell them.
- Domain transfer process to a buyer.
- Price at which you should sell domains.
- Trademark issues while buying and selling domain names.
You need to have low upfront investment for getting started. In case you want to make more money online, you can always opt for buying and selling domain names. You might have heard the stories about domains which were purchased at a very low price some years ago and now those are being sold for millions. Wondering how can you do that!
Well, you will need to swim in the big ocean. Therefore, you might find it hard to earn money and it’s likely that you might waste time and money after the wrong domains. You need to have a proper plan or a guide so that you can run the business exclusively.
Buy and Sell Domain Names for Profit with These 5 Tips
Check the tips that will help you to travel in the right direction while buying or selling a domain name for profit:
1. Limit your focus.
2. Search for the names that offer real value.
3. Check domain availability.
4. Estimate the price.
5. Get your domains front of the public.
Let’s check them in details.
When you go to buy a domain, you will find millions of domains registered by someone and limitless combinations of available domains to register. This happens especially when you consider hundreds of new domain extensions such as .club and .app. In case you are planning to resell a domain, you should limit your focus.
You should ask yourself about the things you already know to make your task easier. Do you know about pets? Do you have an idea about car or home sales? Are you into education or healthcare? So, think about the fields that you know well and start from there.
Here are Few things that you shouldn’t do:
Never target prospective buyers based on their economic status without diving deep into the industry you are targeting. You might think that lawyers do well and you should start selling the domain names to them. So, you hurry and buy a cluster of domain names that you think might appeal to the law firms that you have selected as potentials buyers. Without knowing anything about space, you won’t be aware that the American Bar Association and other industry-specific organizations have defined rules that rule some legal advertising aspects. You won’t be striking gold by selling the names your target buyers won’t be able to use.
Keep your focus on the fields you are well known to and then see how successful you will be instead of buying domains, thinking it will benefit someone in an industry you don’t know much about.
You will need to find the ways for the domains you purchase to be a valuable asset to the buyer. Find someone who will get the benefit from buying the domain in a space you are known to. Think that you are a customer and someone is selling a particular domain name to you, would it be beneficial to you? So be honest. Ask if this is so then why? If this isn’t so then why?
Let’s take a real example. Suppose you have deep knowledge about the cosmetics market and you get a discount offer on the e-store such as cosmetics.com for $100. You might find this as a good deal only if that store comprises of plenty of cosmetics; there’s a lot of competition in that market and the turnover in the cosmetics is high. Ask yourself:
- How much does the store owner earn behind per product?
- What kind of domains are your competitors, retailers, etc. using?
- Are they spending on advertising? If yes, how much?
- How much will the selected domain help them to sound authoritative in their market?
If you have right answers to these questions and in-depth knowledge of this niche then you have the idea of whom to contact and how to make this domain convincing so that it will help the business grow.
Now you have put down a limit on the names you are most likely to buy. But again how do you find them? Firstly, check if the names are available to buy as new registrations.
If the names are already taken, go to the aftermarket to buy from people who are owning the names or the ones who have let the domains expire as they no longer plan to use them.
The advanced search option can help to quickly sharpen the type of names you are interested in. You can constrict the results by price, top-level domain (i.e, .com, .net, .org, .club, etc.), keyword, and many more filters. With this feature, you will be able to quickly differentiate through the millions of domains on the aftermarket and find the domain names that best fit your end goals.
Once you decide on a name, you will need to think on if the price is fair for it to pay. For this, you can enter the keyword and also, use some enhanced features to find the list of names matching yours, what was the price those were sold at and when they were sold?
Make sure you properly price tag the domains you want to buy. You can use the three most common strategies such as setting the price, auctioning and making an offer.
Setting the Price: You can define a particular price for domain names you have to offer when you aren’t planning to sell them immediately.
Auctioning: Follow the auction strategy and sell your domain to the buyer with the highest bid.
Making An Offer: When you have a niche domain, it is possible to make offers to different prospective buyers who might be interested in buying.
You will find several places where you can post the domains for the public to buy. But before that consider the below things:
Is the Place Trusted and Well Known?
You should feel confident that you will get paid and that the buyer will receive the domain name he has paid for.
Select a place with good ratings and recognized organizations such as Better Business Bureau or licensing from a trusted government source. With this, it will be easy for the buyer to click on the button to purchase the domain and build trust on the domain seller brand.
While selling domains, it is important to build trust among the visitors about your brand.
Is the Distribution Network Strong?
The potential to get your domain name in front of the right buyer is a key. List your domain in a popular distribution network so that it gets displayed in front of millions of potential buyers each month.
Find the people that can get the benefit from the domain name. Reach out to them and check if they are interested in using the domain. If you are into the particular domain niche, you should know the way to suggest the value proposition of your domain name for the potential buyer.
Don’t start sending spam emails. Instead have conversations with people you know will welcome the ability to own the domain.
Selling a great domain name at fair price just to make a profit instead of bringing it in front of the potential buyer is like finding the pirate treasure map but framing it to enhance your living room’s beauty instead of following it to the find the treasure.
Learn More with These Resources
When buying the domains for reselling, you will always have a learning curve. Ask a lot of questions to those who have taken a step forward, opt for forum discussions, keep a track of industry trends and reach out to our support team for more information.
Go to the conferences to gain knowledge quickly and meet several other professionals in your industry. You can also get an idea about the tools and services available to you from different vendors of your niche. All these things will help you make smarter investment and get most out of your time and money.