How to make money by buying and selling domain names for profit
Buying and selling domain names for profit is a thrilling adventure. It looks to summon up images of finding hidden pirate treasure or fathoming the winning combination on the next Powerball. You may have heard about stories prosper of domains that were procured for 8 dollars 15 years ago and today being sold for millions. Obviously, that hints us to wonder, "How can I do that?"
Well, you just need a map or some guidelines to follow for that elusive treasure. Given below are some tried-and-true tips to guide you towards right direction at the time of buying and selling domain names for profit.
Narrow your focus
Millions of domains are already itemized by someone and other interminable combinations of domains names are presented to list, especially when one browse the hundreds of new domain names extensions similar to .xzy and .club. Firstly, you need to narrow your focus if you are scheduling to make the profit by buying and selling domain names. To make it more understandable, let us discuss the topics you are already familiar with. Do you know about education or healthcare? Do you ever indulge in a car or home sales? Think about some spaces you are daily encountered to and let's begin from there.
It is much easier; to begin with selling a domain name to someone whom you think would be valuable enough in a particular industry.
Here are some DON'T that one should not do. Target potential buyers on the basis of their perceived economic status, without any discernment about the industry you're targeting. For instance, some lawyers seem to do well in their field. You may perceive to begin selling domain names to them. So you buy a cluster of domain names that you perceived would appeal to the law firms that you have recognized as prospective buyers. But you may not have any familiarity about the American Bar Association and other industry-specific administrations that set some rules and regulations which govern some facets of legal advertising. Now, obviously, you will not strike that domain names to those target buyers who can't use them.
Recognize the needs of your audience, and the sales will be hiked.
Search for names that bargain real value
Start searching for the names which you think would bargain real value to the target buyers. Instigate with targeting those prospective buyers who would get the advantage by buying the domain in a space you are very accustomed to. Assume yourself in place of those buyers and then think would it be valuable to you?
If so, why? If not, why? Analyze those answers to enhance your search for domain names.
Let's know more about this by taking a real example. Assume that you're aware of the real estate market in Tempe, Toronto, and suddenly you got an opportunity to buy the apartments of the temple for $200. Tempe has a lot of leasing property and there's abundant income in the apartment space, the reason being the city is home to a major university. This might prove to be a good deal. Then ask yourself for certain answers:
- How much does one month of rent of the temple profit a landlord, property manager or another prospective domain buyer? How about a year's worth of rental profit?
- Would you buy this name if you were in the space? If so, why?
- What kind of domains are landlords, property managers, etc., using?
- How much do they spend on advertising?
- How much would this domain sound convince in their space?
Likewise, if you are able to answer these questions with confidence, you will probably get an idea about a prospective buyer. You will get an idea about whom to contact and how to make a convincing case such that this domain helps in growth of the buyer's business.
Finding valuable domains
Let us know how to actually find the domain names. First, check if the names are available to purchase a new registration. If those names are already taken by someone, head over to aftermarket to buy from people who own already own those names or wait and let them expire because they no longer use them again.
A good marketplace to look is auctions.godaddy.com.
Use advanced browsing option to promptly hone in on the type of names you are seeking for. You can analyze the results by evaluating the price, top-level domain (i.e., .com, .net, .org, .club, etc.), keyword, and other necessary filters. It will help you to sort out the required best-fit domain names out of billion domains in the aftermarket.
Evaluating the price
After selection of required name, do evaluate the price. For this, you can just enter the keyword along with some advanced search features to get the list of similar names to yours. This will help you to evaluate the fair price of your selected name.
You can also research about the present domain sales on venues like GoDaddy Auctions and Afternic. Ron Jackson also issues a weekly report on DN Journal that covers top public sales of the week. One can use all these resources to check the fair price of their domains.
Getting your domains front and center
There are many venues to get your domains out in front of the prospective buyers. But one should consider is the venue trustworthy and reliable? It is vital to feeling self-assured in the deal of buying and selling domain names. Always prefer to select a place that has good ratings with identified bodies like Better Business Bureau or licensing from a reliable government foundation.
One should also consider is the distribution network. The capacity to get your domain name in front of the potential buyer must be strong. Listing the domain name in a distribution network such as Afternic can get your domain name in front of millions of impending buyers each month.
Resources to learn more
There is always a knowledge curve in the procurement of domains with the drive of reselling them. Don't ever hesitate to ask questions to those who went before you, always partake in forums like namepros.com and dnforum.com. Keep yourself up-to-date of varying industry trends with the help of resources like domaining.com, and spread out to the Afternic and GoDaddy Aftermarket sustenance players.