How To Sell Domain Names

If you're looking for alternative ways to earn a good amount of profit from the internet, then learning how to sell domain names might just be the thing for you. Smart and savvy entrepreneurs have taken this business, on and some even make a living (and a killing) out of it.

Just like buying and selling real estate, the concept of selling domain names involves purchasing one or a good number of it, at a certain price, and then offering it for grabs at a much higher value. Your profit varies depending on certain factors, but the potential for huge returns are obviously there. To give you an outstanding example, Creditcards.com was recently sold for $2.75 million when it was originally secured for only $35!

Now you may or may not stumble on that big of a deal every day should you become a domain reseller, but it sure drives home the point that this can become a lucrative venture if you are really serious turning it into one.

Of course, there are certain things you need to know, but learning the ins and outs of it, aren't that complicated either. Let me show you in a nutshell how it's done.

Step One - Buy a Domain Name (or Names).  This will vary depending on your initial capital but the most important thing to note here is you need to do your due diligence first ensuring the domains you purchase are marketable to a large audience and one that you can profit from. There's no point securing "yourname".com in the hopes that big companies will go after it.

Be on the lookout for global trends, new buzzwords and other stuff that are usually repeated in the media. You can also try phrases that mean a lot to the average person and talk about a specific niche (e.g. cat care). This way you narrow down your target market but it becomes much more relevant.

There aremany great places to secure domain names and two of the most trusted vendors are GoDaddy.com and Namecheap.com.

Step Two - Decide How You Will Sell It.  Basically, the two options you have are either to auction it off in specific sites such as eBay.com, or you can also take advantage of brokers who can help promote the site for you. Obviously, they would take a certain percentage of the profit, but it's worth it when you compare it to the advertising leverage you get. The vendor where you bought your domain name usually has a program in place should you want to resell it.

Step Three - Decide The Price.Here you have the option to get a service which can assess the possible resale price of your domain, but you can also do it yourself. Just be sure to factor in fees and commissions. In general, domains which have backlinks often come at a much higher cost than those that have never been actively used.

Step Four - Promote It. There are many ways to go about this but here's the number one rule: "Let people know you are selling it!" Be sure to make the "Whois" part of your site (where the owner's name and contact information are listed) visible to anyone.

Step Five - Understand the Sales Process.Be patient when it comes to inquiries, even if it means being asked at a price lower than one that you are willing to take. Getting an attorney or an expert in facilitating domain name transfers is a smart thing to do to avoid any legal complications. The thing you need to keep in mind though once the sale has been made is you should be prompt in transferring the domain name to its new and rightful owner. This will give you good customer feedback as well as better ratings, opening doors to future deals.