Buying domain names for profit may bring you decent returns if you know how to find quality domain names and sell them to the right end-users.
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Domain names are actively exchanged daily and have achieved handsome rewards for domain investors who put in the time to understand the domaining community.
Many domain investors comb through domain listings daily to find those quality domains to add to their domain portfolio.
A lot of people have made money buying and selling domains for a long time.
You can gather that some have done well, and those who started earlier than the herd, have done exceptionally well.
Many of the “good” domain names are in someone else’s pocket, as you may have found out. With that said, you can find quality domain names and sell them for a profit.
You can buy a domain name at a low price, sell it higher than the purchase price, and make some good money.
Domain flipping is an active process. You will have to put in the time of buying quality names and then play an active role in seeking out prospective buyers.
It is in your best interest to learn some of the ins and outs of the domaining industry. In this post, you’ll find a few tips about buying and selling domains for profit.
Are You Buying Domains for Profit?
Quite a few people make a decent living buying domain names for profit.
There are a few things that you can do to profit from your domain names.
If you can get your domains in front of as many eyes as possible, you can create a bidding war, thus selling any names for a profit should be a matter of demand.
Moreover, you can often set a price well below fair market value to create interest in the names and entice a bidding war to bump up your names higher than the fair market value, and potentially make a considerable profit.
You can purchase a good domain name and then resell it quickly for a quick profit. Let’s say you buy headshots.vegas for “$350” That’s only nine letters long, and if someone in that industry is seeking to start a business, they would love that short nine letter name.
The name has excellent money-making possibilities for the owner of the domain name.
You, the seller, can resale the name for “$650” or more for a quick sale and profit $300.
Buy Low, Sell High
Let’s face it with how the world is now, who has the extra funds to purchase a name and start a new venture?
The best thing that you can learn is patience in the domaining industry. Now, if you want to buy domain names, there are eager beavers lined up willing to take your money.
That is to say, you shouldn’t spend your hard-earned money without considering the valuation of your domain purchase. Basically, you want to ensure that the domain purchases are quality domain names.
At this stage in the game, if you think that your generic domain names are increasing in value, then at this point, you may consider selling the name.
If money is not an issue, then hold on to the names until there is a better opportunity to sell to buyers.
Whatever the case may be, make sure to use a licensed escrow service company to help diminish the risk for both you and the buyer during the domain name sale.
The professional escrow service will provide the service of handling the transaction and transfer of funds between the two parties.
Fair Valuation
If you have a good domain name that you want to sell, then price it reasonably.
You could use a domain cost estimator to find out the estimated market value of the domain name.
You can use the website, EstiBot.com, to find a fair valuation for a domain.
You can estimate and price your domains with confidence by using Estibot, which determines domain names' value.
But always check with multiple systems, as this is just one of many that you can use to help price your domains.
If your domain is priced too high, you will find out that there aren’t any buyers for the name, because the valuation is off and your price reflects the low demand for your domain name.
Rinse and Repeat Your Strategy
You have to figure out a method or strategy to rinse and repeat to help bring in an excellent comfortable price and significant profits continually.
When you buy domain names to make a profit, you should keep in the back of your mind what is popular and anticipate what will be popular in the future.
If you find a method of choosing key phrases, general words, generic, and popular, it will give you an advantage when selling those names.
You should also seek out a niche that you know well enough in case you build a website to help generate general interest for the name.
What Do You Want to Do With Your Domain?
Do you think that your names will make you more money if you can hold the name longer for the right buyer willing to pay at a premium?
If you desire to sell a domain name for a higher profit, think of domain flipping as more of an investment in waiting for the right person to show up for those names, instead of settling for a reasonable profit.
Creating a good-quality domain portfolio can take some time and patience to achieve.
Most people look ahead to what domains might become common in the future and purchase many of those names.
Others might buy a few prominent names and wait for them to appreciate in value.
It is all your personal preference as a domain investor.
Is There a Market for Your Domain Names?
Do you know if there is a vast market for your domain? You have to ask yourself if this is the correct time in the market to sell your domain name.
Meaning, are there businesses or individuals who want to stay ahead of their competition and buy your names?
You can always reach out to potential buyers and communicate a value proposition of your domain name if you know the specific industry where your quality name can help the buyers profit from the name.
Do you know if you want to sell the domain name to a “reseller.” That is, a person such as yourself who wants to purchase the domain name and sell at a more convenient time?
Do you expect the service or product to become widely known and bring in more type-in traffic?
Do You Need Money Now?
Do you need the money for another venture?
Do you even need to sell the name, or is this a conquest to see if you can sell a domain name at any price?
If that is the case, then you need to think about your buying and selling strategies.
Yes, it is common to receive offers for domain names that people can’t refuse, but that is not as common as people may think when it comes to random people contacting you to buy a domain name with an offer that you can’t resist.
Unless you have a domain name that is a real gem and you receive some astronomical offer, then there is no reason to reject the buyer.
Brandability and Length of Names Do Count
Is your domain name brandable? People make up short names all the time in an attempt to own a short name.
Now in some cases, these are brandable, and sometimes they are complete junk.
If you have decided to create a name, keep in mind how it will sound like someone’s brand and people saying the name, or hearing it on tv, radio, etc.
Is your domain name too long? If so, then you will hear cricket sounds for that domain name.
The first thing that you should be aware of is the length of the name.
People in today’s society are on the go, and their time is limited.
Therefore, people don’t have time to type an extra long name or even remember the name for that matter, so the shorter the name, the better your chances of selling the domain.
Don’t get me wrong, it is an excellent marketing ploy to have a domain name that is a sentence or phrase, but the general opinion is that shorter domain names are better to own.
Landing Page
You can create a landing page stating that your domain name is for sale.
If a buyer wants to purchase a name, they will type the name into their web browser to verify if it is available.
And with you creating a landing page, your web page can often be an excellent source in closing a domain deal.
If you intend to boost your domain sales, make sure that your landing page reflects and specifies that the domain is for sale and offers prospective buyers a way to contact you for any inquiries about the name.
You can also create a full-blown website to advertise and market the name.
Whatever the case, after marketing and advertising the site for a while, you can drive type-in traffic, increase the page rank, and use SEO to help drive up the domain's price when selling.
Using good SEO tactics to drive up the page rank will help make the domain worth more money when selling the domain name.
The reason for the increased value of the name is due in part by the steady flow of type-in traffic going to the site.
You can resell the name for a considerable amount of money by using good SEO tactics.
Parking Page
A buyer can also make money for purchasing a domain name by holding the name for a bit before trying to find an end-user.
You can park your domain, and the parking company will serve related ads on the webpage.
If you decide to park your domains, it is imperative to display a for-sale message and list them on the major domain marketplaces.
Learning Process
Yes, there is a learning process when it comes to buying domain names for profit.
You can always make a decent amount of money buying and selling domains. It just takes time and practice to get the hang of this industry.
With buying and selling, you have to keep in mind that your time is worth money.
If you are a person who has time and price motivates you to sell, then these are probably the types of sales you will want to target.
In Essence
Buying and selling domain names is an exciting process and a great way to make money online from the comfort of your home.
Yes, it is easy, but it pays to know what you are doing before buying or selling the name.
If you intend to make a living out of buying and selling domain names, you should make enough to pay any taxes that you might incur.
Consult a tax expert to help direct your business adventure in the right direction as far as filing your taxes accurately.
Without a doubt, you have to make plenty of money to cover the domain's original price.
However, you will have to consider the other expenses, in particular renewal fees, or Escrows fees for handling the transaction.
Regardless, if you want to keep your domain names or sell them off, make sure that you create a thorough method or strategy to make sound decisions for your domaining business.