How to Make Money Selling Domain Names

How to Make Money Selling Domain Names

The concept of selling domain names might be a bit difficult to wrap your head around with, but it’s really simple once you understand the process.

Here’s a short and easy guide on how to sell domain names for profit.

How Do You Start Selling Domain Names?

A domain name is a web address that’s typed into the URL or http field in a web browser.

An example of a domain name is money.com, makemoney.net or coupons.uk. In the world wide web it’s like a virtual space, or a virtual real estate if you will.

Buying a domain name is like owning a piece of virtual real estate on the internet. You stake your claim and will own that ‘piece of land’ and wait until somebody comes along and wants to buy it. Along the way, you pay a nominal ‘maintenance’ fee to keep the ownership.

You and the interested buyer will then hopefully reach an agreement, and they will buy the domain name off you for a set amount of money. When the money you receive is greater than the initial investment and upkeep then you’ll have made a profit!

Making Money by Buying Domain Names

Some domain names are more valuable than others. Think of it as real estate (again), where properties in posh neighborhoods and developed cities are more expensive than those located in the suburbs.

When buying a domain name you’ll want short and easy to remember ones as they tend to be snapped up faster. You can either hold on to it without doing anything else, or take a more difficult route and establish content until the site gains significant traffic (visitors).

Then, you can sell it to people who want a ready website that already has an established user base.

Is Domain Flipping a Viable Source of Passive Income?

When doing some research about buying and selling domain names for profit you may have come across people questioning the process and its legality.

There are groups or communities who say that domain flipping shouldn’t be allowed, but there are no legislation or regulation that says otherwise. Therefore, domain flipping is not illegal and you’ll be able to make some money as long as you’re smart and lucky enough that a person or company will want to purchase it.

When selling domain names you’ll want to keep an eye on the following:

  • Your Whois.com information. Update it often and leave several contact numbers and an email address.
  • Put up a ‘Site for Sale’ sign plainly and on the front page.
  • Change the ownership in your name.
  • Don’t put up content that may attract companies.
  • No trademarked product, brand or services.
  • Get a domain name broker to finalize the domain sale, and have a domain transfer tool handy.

Domain reselling is certainly a viable source of income as long as you’re willing to do some research and keep up with the trends.

Choosing the domain suffix is the first step to purchasing a domain. The most common suffix or domain extensions are .com, .org, .net, .co.uk, .me and .co.us, among others.

.com domain names are generally worth more than other extensions, e.g., .org or .net, and the reason is simple- it’s easier to remember, and .com is the most commonly used extension there is. However, you’ll want to get extensions on the region market you’re targeting, e.g., .uk or .tk, for instance.

Where to Start Selling Domain Names

Domain name owners can play the waiting game or they can go to a domain auction platform.

Should you choose to do the former, you must make sure that your domain is visible and that you have the ability to set a transfer when the price is right.

You can put up your domain listing on auction sites and platforms that might be interested in it.

Some of the best platforms where you get your domain listed are eBay, LinkedIn, NameJet, Flippa, GoDaddy Auctions, Sedo and on the front page. You should also fill in your contact information on Whois.net.

Tips on How to Sell Domain Names for Maximum Profit

  • Be familiar with the process of domain transfers.
  • Research global trends, the market and hot keywords.
  • Try buying local domain extensions.
  • Don’t sell to the first bidder. Wait for bigger offers if possible.
  • Advertise frequently on domain selling platforms, LinkedIn and social media.
  • Start out with a few domains and within budget.
  • Read current events so you have an idea of what domains could be worth more.

How Much Can You Earn by Selling Domain Names?

Some domain names are worth more than the others. This depends on the company or the person that wants it and their asking price. If there’s a high demand then the bid usually goes up.

Selling a domain name is like selling an item on eBay. You can put it out there, and someone might be interested and offer to buy it off you for a price. You can choose to accept or decline depending on how much you think it’s worth, the length of time you’ve been holding on to it and how much money you’ve invested in it.

If you somehow bought a good domain and a big name company or start-up wants it, then you could potentially earn thousands or even millions. The record holder of the biggest pay-out was Business.com, which was sold for $345 million.

However, it’s likely that you can sell your domain name for profit if you keep a steady eye on trends and wait until the right buyer comes along. If you didn’t spend much to acquire a domain name and the demand is high, then chances are that you’ll come away several hundred pounds richer by the end of the exchange.

Selling domain names can be as passive or hands-on as you want it to be. It’s also flexible in terms of budget in that you can buy as many or as little as you want to get started.

So, start checking up domains and keep them as assets to make money!