How to Make Money Selling Domain Names
Although you might associate selling domain names for profit with the early 2000s, it is still as much a viable money-making business as it ever was. While the dot-com bubble has burst, and with it the price of domain names has fallen, you can still make a tidy sum of money by reselling domain names. Here is a short guide about what you should be doing if you want to make money by selling domain names.
First, Consider the Law
You need to think carefully about the law in regards to the trademarks that already exist. While there are very few laws pertaining directly to domain names, it’s a good idea to have a basic legal grasp of exactly what you are doing to avoid paying for expensive attorneys further down the line. This is a relatively safe business to be in, but even with reselling domain names, there are traps that you need to avoid.
What to Look For…
If you are first getting into the business of trading domain names, you might want to start with generic names that are likely to get a buyer in the future. You should be wary of copyrighted names, but other than that you can let your imagination run free. Make sure that the names aren’t too out-there, and that they have potential for businesses to be named after them. As a rule, domain names should be simple to spell, memorable and not contain any special characters that will put people off from buying them.
Geographic Location Domains
Businesses often have a habit of buying up less-specific, but related, domain names which point to their website. For example if you notice a new electronics store is opening in your local town, you might want to buy a geographic domain name that they will then want to buy to point to their main domain. This can be risky in the sense that the company may not want the domain, but if you can provide statistics about how much traffic the domain has received they may be open to persuasion.
Buying up business names can be a great way to earn money. Large businesses will often pay big bucks for popular domain names that relate to their website. It can be hard to keep on top of the latest business updates and developments in your local area, but if you can do it then you will make a good deal of money. It never hurts to approach businesses and tell them about your domain name!
If Buying Existing Names, Make Sure You Haggle
Never pay the price that a seller has a domain listed for. Most domain name sellers are people trying to do the same as you – sell for a profit. Some of the people selling domain names will be first-time sellers without market experience, but almost everyone is willing to negotiate rather than let a sale slip through their hands. A huge mistake is to seem too keen to buy a domain name; go into the transaction without committing yourself and you should get a much better deal on it than if you directly say that you need the domain name.
You Have to Speculate to Accumulate
If you are going to be successful at reselling domain names – or any business for that matter – you have to invest. Create a portfolio of names by buying ones that you think are popular and have common keywords in them. Once you have invested, scout the market to see where you will get the best offers. Sometimes internet forums are the best place, especially those focused on niche groups that your names will appeal to.
You should be cautious of websites which offer to sell the domain names for you. More often than not they are scam websites that will take the buyer’s money and you will still be expected to trade the domain name.
Consider Auctioning the Domain
A good option for offloading your domain names at a profit is to use an auction website. They work on the same basis as websites such as eBay, where you pay a small commission in return for using the website’s auction service. You should remember that most websites don’t allow reserves, so there is some risk with auctioning domains. If you have the right mix of bidders, however, you could make a really great profit.
Be Cautious with the Prices that You Sell For
The last thing you want to do is be stuck with an immovable domain name, so if you get an offer you should probably take it up. Unless you are convinced that someone will offer a higher price, be sure to barter with the seller to agree on a reasonable price. While it’s not a good idea to sell at a loss, sometimes you have to in order to get a domain off your hands and reinvest the money elsewhere. Charging way of the odds is likely to deter would-be buyers, so be fair and you might even get repeat customers.
Kate Funk is a professional blogger and writer at Tutorsville. She specializes in topics of interest to techno geeks and networking enthusiasts.
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