Investing in domain names can be a profitable business. It is not surprising to turn a $50 investment into a $300 profit. But like any other venture that is worth pursing, success in selling domain names requires proper knowledge, practice, patience, and good luck.
Registering your own domain names
Of course, before you start selling something, you need to own it first. One of the many advantages of this business is that you simply need to own some domain names. You do not have to design a website or draw a tremendous amount of traffic. You do not even need to post any content. All you need is a set of domain names.
To own your domain names, you must register them with the Internet Corporation for Assigned Names and Numbers (ICANN) through a domain name registrar. There are many registrars online, such as:
The price of registration varies depending on your chosen registrar. On average, the fee for a single domain name is approximately $15. Note that you must pay annually; otherwise, your registration will expire and it may be difficult and costly to recover your domain name.
Choosing the right domain names
This is the crucial part. Do not just buy any name that you can think of. Remember that the name that you register is the domain name that you will sell. This is your main product, so be very careful. Once registered, you cannot change it anymore.
Various studies and observations reveal that it is hard to predict what name will sell in the market. The market is alive, and it continues to evolve. So, instead of coming up with random names, pay attention to the world around you. What is the current trend? Can you predict, at least, the near future?
It is also worth noting that registering more names does not always mean more profit. It only assures you to have more expenses. As a rule, just stick within your budget. You can register even one domain name to test the water.
Another good advice is to pick a generic name. If only you had registered “apple.com” years ago, there is a good chance you could have earned a huge profit from it.
Generic names also tell what the site is about. A website about food would strongly consider a name like “food.com.” It is short and clear. Do not use a long domain name. Remember that a domain name is like a business address. Keep it short, clear, easy to remember, and easy to pronounce.
Making a sale
Once you have registered your domain names, it is time to sell them and earn money. There are many sites where you can list your domain names, so that they will be open to the public for sale. You might want to consider the following:
- Flippa
- Ebay
- Sedo
Depending on the site, there are free options, as well as paid options and features. Be sure to examine the site first before listing. Of course, there are other ways to sell domain names, such as via social media. The important thing is to be able to connect your product with a buyer.
Be sure to price your domain names properly. It should not be too high that even a willing buyer would be forced to resist, yet not too low that will cause you to suffer losses. It might take some time before you make a sale. Do not worry; that is part of the game. Always remember to keep your expenses as low as possible, and sell high without being unreasonable.
A message
Investing in domain names is a fun venture. It is like gambling but with some skills involved. You can earn a very high profit, but you can also lose all your investments. Thus, only invest with the money you can afford to lose.