Want the tips we use to make money from home?
Sign me up to receive more helpful tips about making more money for yourself, saving a lot of money to get rich and frugal living tips. Feeling inspired and would love more blog posts like these
Making money flipping expired domain name is one huge easy way of making a lot of money online. We shall learn today how to make money buying and selling domain name
A name represents a person/thing; it is an identity. A domain name is the brand of any business online.
This is why people pay unbelievable amounts of money for the right domain.
For example, back in 2007, “VacationRentals.com” was sold for a whooping sum of $35 million.
I know what you are thinking right now: Do all domains cost that much?
Of course not all domains can be sold for such insane prices. But taking away deals of such big size, there are hundreds and tens of thousands of domains that are being bought and sold every single day for prices that makes domain name selling a profitable niche.
And this is where you can find your money making opportunity – sell domain names for profit.
Here’s an easy guide on how you can start buying and selling domain names for profit.
how to make money buying and selling domain name
- Buying Domains
Let’s find out how to buy and sell domains, the pros, cons and what to do and what not to do.
Building a Wealthy Portfolio
In the domain names market, it is quite common for domain traders or resellers to buy hundreds of domain names at a go. The reason is that this makes it more easier to find that special domain name that can be sold like a pot of gold.
But this would normally require you to make a significant investment.
For beginners who want to fast learn and rise in domain name flipping, I would recommend starting out with just a handful of good domains and then slowly building your portfolio.
While keeping it in mind that it takes times (sometimes years) to build an impressive domain portfolio. The best strategy is to look out for those potential big hitters.
But you could also increasing your chances by progressively buying up more and more potential domains.
Perhaps your best bet is to acquire domain names that seem to have already gained some attention, and fold your arms knowing that the value could appreciate even more.
So, What Kind of Domains Should I Be Looking for?
- Timely Names
this works best when you can equate a time-frame to a specific event during that time. An example here could be 2018WorldCup.com.
- Business Names
Here the focus is to get the business names generic. If you can land your hand on names such as lawyer, doctor, nurse or dentist, then it will be better. You can increase your investment odds a if you are able to get both geographic names or generic business names.
- Geographical Names
Geo refer to names of cities or countries. Additionally, new and emerging locations can potentially land you a more profit on your investment. Your potential targets could be some that developers may wish to build some community based portals, or design brand new services to cater to those particular communities.
- Generic Names
these refer to simply a product or service. If you move fast enough for new and emerging product, then the result can be interesting. But I must warn you to trade with caution; if you do not want to inadvertently get caught with copyright or trademark issues. The possible result here is that you could get your newly acquired domain forfeited.
Where to Buy Good Domains for Cheap?
There are many places and ways to buy and acquire domains – auctions, direct buys, expired domains, registering new domains, etc.
Some sites, such as GoDaddy.com, offer auctions where you can bid on domains.
Here are some of the options you have.
- Buy Domains from Registrars
When it comes to buying domain names, you can use any domain registrar.
If you’re trying to register domains that are freely available, here are a few of the top domain registrars you could use:
Get them Cheaper
typically, a domain will cost you anywhere from $9 to $15.99 or so. But you can almost always get them for way cheaper.
Be sure to always look for coupons and promo codes before buying any domain. Most of these companies offer them from time to time.
Godaddy for example, is famous for their 99 cents domain coupons. Use coupon sites like RetailMeNot.com to easily find these coupons.
- Buy Domains at Online Auctions
If you’re serious about domain flipping, one of the best strategies is to buy expired or deleted domain names.
These are domains that their owners no longer want, so they are sold by the domain registrars in an auction style setting.
And a lot of times, you can find fantastic domain names on these auctions.
3 Months ago I bought one for $25. And although I had no intention of selling it, I got an offer from someone asking to buy it for $200. Since I didn’t want to sell it, I just countered their offer with a price tag of $3000. To my surprise, they re-countered my offer with $2500. Needless to say I sold it to them and profited $2475.
Of course, it’s not always as easy. I just got lucky with that name, and had somebody who really wanted it. That said, if you do it right, you can make very good money as a domain flipper.
Here are some of the best places to buy expired domains:
Of course, you could also try Sedo, but I wouldn’t since most people who are selling there are already aware of its value, and so it would be hard for you to get a domain cheap enough that you can turn around and sell for a profit.
Out of the 5 sites mentioned above, GoDaddy sell auction is the best and cheapest one (from personal experience).
On a lot of sites, it seems like people(especially newbies) bid blindly left and right and this raises the price up so quickly for many names including domains that are really not worth that much at the moment.
- Buy Domains Directly from Owners
What if you have your eye on a name that is already registered but it’s not for sale on auction sites?
Well, you can always contact the owner directly and make him/her an attractive offer. Sometimes they may take your offer, other times they may not. But you’ll never get to know until you ask.
The great news is that many blog owners don’t realize the true value of their domains, so most are willing to part with it for a decent amount of money.
Tool for Finding/Buying Good Auctioned Domains
Checking out these auctions one by one can be a time-consuming task, not to mention, because you may not be able to see every available domain, you may lose a lot of awesome opportunities.
Which is why I have listed out a few sites I to help sort through the hundreds of thousands of domains up for grab at these auctions; these tools are highly recommended.
This is a website/free tool that lets you sort through the domains through the use of different metrics (alexa, age, traffic, Page Rank, etc.). It collects data from a bunch of different places including the auction sites I mentioned above.
If you don’t mind spending some money, you can use RegisterCompass. This of course is not recommended for beginners. This is an advanced online domain search tool that enables you to search in expiring, expired & auction domains. It lets you filter your name list on metrics such as Google PageRank, AlexaRank, Traffic, and many more.
- Selling Domains
Ok, so now you’ve bought a few domains and are ready to sell them for profit.
You might ask:
How to make money buying and selling domain name?
How do I do it?
Where do I sell your domains?
How do I even get paid?
Not to worry. We’re going to cover all of that.
But first, let’s start with a few tips:
- Set Your Price
if there is no pressing need to sell off your domain names, the most desired approach is to simply set a specific price on the affected domains. This is the way of operation for most domain sellers.
if you seriously believe/notice that there is a lot of interest in any of the domain you own, put it up for auction. This is the best possible approach to fetch the highest possible price when there is arising/reoccurring interest.
- Make an Offer
If the domain name under your possession is niche specific in nature, chances are it is not going to create mass interest as in the previous case. In such instances, you may have to make an offer as there may not be useful guidelines to determine the exit value of your domain name.
Best Places to Sell Your Domain Names
Just like buying domains, there are also thousands of places where you can sell off your domains.
But to maximize your profits on your domain sales, you have to sell it in the right market.
Here are top ten(10) places to sell your domains for the most cash:
Risks Involved with Domain Flipping
As in any business transaction, there will always be great risks for potential investors.
The most encountered risks associated to domain flipping are liquidity, legality, and subjectivity.
But there could be also other areas you should pay attention to. For example, misinterpreted payment terms or misleading appraisals.
And as with any other form of investment, there is a chance you’re going to lose. Not every domain you buy is going to sell for more. So be sure to do your research before buying any domain in hopes of selling it for more.
But this is not the case with domain names trading.
Sometimes it can take a long time (often months that could turn to years), between the time when you first put up a domain for sale and the emergence of a serious buyer.
The good thing is that there are still set rules governing legal ownership of domain names.
Stealing is a crime, and you cannot make a company buy back a domain name that legally belongs to them.
For example, you can’t buy CompanyZ.com and make that company pays for it later. The reason is that Company Z is already a trademark name.
So, be wise enough to stay off these issues unless you are ready for some legal war. In the same way, you can’t buy someone else name.
Unlike stocks and bonds, where transactions are well regulated and the respective values conform to certain rules and regulations, domain names evaluation can be more subjective and difficult.
You may argue that those domain appraising companies are there to help establish prices. But there is no guarantee that unscrupulous businesses may not come out with ridiculous valuations in order to drive the market up north.
As in the case of normal business, buying and selling domains for profit has its own advantages and disadvantages.
Investors of domain names are always exposed to certain business risks.
Always do your math to balance both returns and risks.
At the end of the day, buying and selling domains can be a profitable business if you can play your cards right.
Enjoyed reading our how to make money buying and selling domain name? Kindly share this posts with our friends. Thanks