Yes, you can still make money by buying and selling domain names.
I have been doing it as a side hustle since 2005. Actually, it was the online endeavor that I first made money with.
The biggest myth in this industry is that all the good domains were registered long ago, so you cannot make money selling domain names. Fact check: This is false.
Another myth is that domain selling is just for entrepreneurs with deep pockets who got into the game early.
However, it can still be profitable for the “small” man who is just entering the industry and willing to learn the ropes.
Once you acquire the domains, you must decide what price you will sell them for and how to market them.
It’s almost like physical real estate – identifying the right property, securing it, and finding the right buyer willing to pay a premium.
What Makes A Domain Valuable
The Extension
If you are new to domain investing, the best advice I can give you is only to buy dot com (.COM), the most popular extension, to sell until you have more experience in the industry and can branch out into other extensions.
Dot com domains are the most popular worldwide and fetch the highest prices when sold.
Dot net domains (.NET) are the red-headed stepchild of the domaining world. Domain investors do not typically sell many of them.
Dot info (.INFO) domains are also a tough sell. Although this extension was intended to host informational sites, even those kinds of sites rarely use them.
However, this extension is less popular than dot net.
I would not register .info domains unless they are generics like car.info, Miami.info, etc.
Dot org (.ORG) domains fare better, but the drawback is that they are associated with non-profits or educational sites.
Dotco (.CO) domains can sell well if they are good one-word domains with commercial appeal. The drawback is that web surfers can easily confuse them with dot coms, so buyers are not always crazy about them.
Dot io domains (.IO) sell well, provided they are short and related to the tech industry or crypto.
Dot AI (.AI) is more than a decent extension—it is hot right now because AI is revolutionizing business worldwide.
Registering domains that fit the AI industry is vital to enter the dot AI market.
For instance, story.ai and videoediting.ai fit this industry. Riesling.ai or doormat.ai would be hard to sell because these words do not fit in the AI industry.
Domain name extensions can be categorized as follows:
Top-Level Domain (TLD): The highest domain name system structure level, including familiar extensions like .CO, .NET, .ORG. and .INFO
Country Code Top-Level Domain (ccTLD): Certain countries have been assigned extensions such as .CO, .CO.UK, .US, and .IO .US. Dotco.UK is a UK extension, and dotUS is assigned to the USA.
New TLDs: These are fancy extensions such as dot guru, dot lol, dot online, dot shop, etc.
Stay away from the New TLDs for now. They are very hard to sell, and businesses rarely use them.
To see which domains are selling, check out Namebio.com and DNJournal.com
Short Length
Shorter is usually better when acquiring domains to sell.
Shorter domains are memorable and easy to type. By short, I mean domains that are two to eight characters in length.
These domains are typically already registered or host websites. You may also be able to buy them at the aftermarket but be prepared to pay handsomely.
Three-four letter dot coms can be very valuable. If these domains are pronounceable, they are even more valuable.
Nut.com and Winn.com would likely be worth more than Utn.com and DXFG.com.
All three- and four-letter dot com domains are taken, but you can find some for sale on the reseller market—like at Namepros.com—or in the aftermarket, like Afternic.com, Sedo.com, Sav.com, and Dynadot.com.
I tend to register two-word dot coms about 12-16 letters in length. These are cheap at around $8 a pop.
I have found some good ones that I have sold for between $1200 and $1500 each.
I rarely register two-word domains in other extensions. If I do register non-dot coms for sale, they would be one-word domains.
As always, it is best to acquire domains with commercial appeal. These types of names are always in demand.
Domains With Real Words
Domain names with actual words outsell all other types of domains.
Do not try to be cute when you register domains to sell. Only go for domains that are made up of dictionary words.
That said, there is a market for brandable domain names, a popular non-dictionary domain.
Examples of brandables include Google.com, Rentokil.com, and Etsy.com. Brandable names are popular with startups.
Do not buy and sell brandable domains until you have more experience. These domains can be hard to sell if you do not have a discerning eye for what business owners want.
To develop that discerning eye, you can visit popular aftermarket sites that sell brandable products, such as Brandpa.com and SquadHelp.com.
No Hyphens
Domains with hyphens are a tough sell, even for the experienced.
Buyers generally shun these domains unless the hyphen makes sense. For example, the hyphen in the domain pro-sports.com makes sense.
It is best to leave these domains alone until you gain more experience, or you could buy one or two just to test the waters.
If you buy a couple for sale, go for ones that can build a brand. For example, sushi-chef.com and pro-sports.com. A domain like cheap-advertising.com would not be a great brand because it sounds boring.
No Numbers
Leave numerical domains alone until you gain more experience selling domains.
Trying to sell these domains is a crapshoot for the casual investor because most businesses worldwide do not use them.
However, numerical domains are very popular with one segment of buyers – Chinese buyers.
The length, the sequence of numbers, and the numbers themselves greatly affect the value of numerical domains.
Three-digit domains can be crazy expensive because they are so short and easy to remember.
899.com sold for 801k. 358.com for 488k.
Longer numerical domains can sell for three figures or more. 145444.com sold for $100.
Short domains that combine numerals and letters can also fetch high prices. For example, 3go.com sold for $12,001 at Namecheap.com.
Check out this quick guide on selling numerical domains.
Niche and Keyword Popularity
Domains relevant to profitable and popular industries can have a higher value.
Popular industries include AI, auto, cloud, crypto, and finance. Domains that have these keywords in a manner that makes sense have high commercial intent and should garner a lot of attention from buyers.
For instance, CloudStorage.com – a very good domain – makes a lot of sense and has high commercial intent. However, GymStorage.com makes much less sense and has low commercial intent.
To see which keywords are hot right now, visit Afternic’s X account here.
Where To Buy Domains To Resell
The most successful domain sellers have hundreds or thousands of domains for sale.
Some of those domains were hand-registered for $X-$XX, and others were bought on the reseller market, aftermarket/auction sites, or through personal outreach for $XX—$ XXX.
The quality at the reseller markets tends to be lower, but you can find some gems there, whereas the quality at the aftermarket/auction sites is typically much higher.
You can buy (and sell) domains at the following find reseller markets: Acorndomains.co.uk, DNforum.com, and Namepros.com.
Some reputable auction sites are Dropcatch.com and Namejet.com.
ExpiredDomains.net is a great place to find decent-quality domains that were once registered but have now expired. I found most of the domains I have sold over the years there.
The major aftermarket/auction sites are Afternic.com, Dynadot.com, Godaddy.com, Namejet.com, Namecheap.com, and Sav.com.
You can find more aftermarket sites with a Google search.
My Pricing Strategy
I price domains competitively because I do not want to hold them too long. I need the cash to reinvest in other domains and pay living expenses.
I typically price my non-premium domains between $1500 and $2500 for good two-word domains. I will drop them to $1000 or slightly less if they do not sell at those prices.
For my higher quality non-premiums, I price them around the $5k mark.
One thing I should be doing is liquidating the non-premiums I have held for years. I let them drop instead of going to NamePros.com and selling them for $XX.
I encourage you to try to liquidate your non-premium domains if you have been holding them for too long and need some cash.
You can be more patient with premium domains by holding onto them for the right buyers at higher prices.
Where To Sell Your Domains
The two most popular places to list your domains for sale are Afternic.com and Sedo.com
When you list your domains there, these sites syndicate the listings to other domain registrars. So, if people search for your domains at those other registrars, your domains and pricing will appear.
Domains listed at Afternic.com are syndicated at Godaddy.com – the most popular domain registrar in the world.
I like listing my domains at Afternic.com because those listings automatically get syndicated to Godaddy, the biggest registrar, and many other domain aftermarket sites. Actually, Afternic is owned by Godaddy.
You can and should list your domains for sale at multiple places, but each domain can only have one live for-sale page at any time.
You will pay 4-20% in commissions if you get sales through these aftermarket sites. You will not have to pay those commissions if you sell your domains on your site.
Selling domains through your own site will require you to be able to accept payments. You can accept payments via your PayPal or merchant account if you have one.
Alternatively, you can sign up for a free account at Escrow.com and have buyers send you payments there.
I like to list my domains on the major aftermarket platforms for two reasons. One, they can handle buyer payment verification and process payments and chargebacks; two, they can reach a large pool of buyers.
Listing your domains for sale and waiting for a buyer is a passive strategy. To speed things up, try outbound marketing, which involves contacting people via email or phone who might be interested in your domains.
To find prospective buyers’ contact details, look at their social media sites and business websites if they have them. Ideally, you are looking for prospects with businesses in the same industry as the domains you want to sell.
A popular outbound marketing strategy is selling geo-service domains like MiamiChiroprcator.com, NYPlumber.com, etc. These types of domains typically fetch low to mid $XXX-$XXX.
Please only reach out to prospects with decent-quality names.
You should check out this ebook, which outlines how to sell domains successfully through outbound marketing.
Remember to try to liquidate your domains rather than letting them expire.
Your response to a buyer will depend on your need for cash, how long you have been trying to sell the domain, and your willingness to hold onto the domain for longer.
Getting Offers
After you list your domains for sale, the best-case scenario is that the prospective buyer will immediately buy your domain at the buy-it-now price you have listed.
This means that there will be no need for a negotiation.
If the prospective buyer makes an offer that is lower than your original price, you and the buyer could react in the following ways:
a. You accept the buyer’s original counteroffer.
b. You reject the offer or do not answer the prospective buyer’s inquiry because the offer was so low it was insulting.
c. You lower your original offer but keep it above the prospective buyer’s counteroffer, and the prospective buyer accepts or rejects it.
d. You or the prospective buyer make a final offer that can be accepted or rejected.
e. Negotiations breakdown, but sometime in the future, either you or the prospective buyer will reach out to try to get a deal.
Just remember that a domain is worth what a buyer is willing to pay for it. If you have been trying to sell a domain for a while and received an offer lower than your valuation, you might consider accepting it.
I have been in situations where I refused an offer and never got another, so I dropped the domain (let it expire).
Your response to a buyer will depend on your need for cash, how long you have been trying to sell the domain, and your willingness to hold onto the domain for longer.
Lifespan of A Domain Name
Let us assume that you have registered a domain.
You should watch when the domain expires to avoid losing it or paying for its renewal if you do not intend to keep it.
To help you do this, note the domain lifespan below.
Registration
This is the beginning of the domain name’s life cycle.
It starts when someone registers (buys) a domain name from a domain registrar.
During registration, the person or organization specifies the domain name they want and pays a registration fee to secure it for a certain period, typically one year.
Active Period
Once registered, the domain name is active and can be used to host a website, set up email addresses, etc.
It remains active as long as the registration fees are paid on time.
Renewal
Domain names need to be renewed periodically to remain active.
Most people register their domains for a year, but you can register longer. If you register for only one year, you can extend the registration for additional years later.
A domain enters the next phase if you fail to renew it before it expires.
Grace Period
Most domain registrars provide a grace period after the registration expires, during which you can renew the domain without losing ownership.
The length of the grace period varies depending on the registrar and the domain extension, but it is typically 30 days.
Redemption Period
If a domain is not renewed during the grace period, it enters the redemption period.
The registrar reserves the domain during this phase. However, renewing the domain during this period usually incurs additional fees.
Pending Delete
If the domain is not redeemed during the redemption period, it moves into the pending delete phase.
During this time, the domain cannot be renewed or transferred.
After the pending delete period expires, the domain is released back into the pool of available domains, and anyone can register it again.
Improve Your Domaining Knowledge
If you want to succeed as a domainer, educate yourself as much as possible.
Read DNjournal.com, NamePros.com, and the domain king.
Education will improve your skills at buying better quality domains, pricing, and negotiating.
Conclusion
The information above may be a lot to take in. So, I have listed the main points for you to consider:
- Register only one or two words of non-hyphenated dictionary dot com domains to sell.
- List your domains for sale on the aftermarkets.
- Price your non-premium domains competitively.
- Drop the prices or liquidate non-premium domains that have not received any offers for a while.
- Be patient when selling your premium one or two-word domains. If necessary, hold onto them for longer.
- As a newbie, do not fear taking your profits, even if you get slightly lower-than-expected offers. Your aim is to build up cash reserves so you can reinvest into higher-quality domains.
- Register only one or two words of non-hyphenated dictionary dotcom that can be branded domains if you want to test how well these kind of names sell.
Be First to Comment