“Buying and selling domain names is an exciting adventure that for some seems to conjure up images of finding hidden pirate treasure or guessing the winning combination on the next Powerball. Stories abound of domains that were purchased for $8 dollars 15 years ago being sold today for millions. Of course, that leads the more adventurous of us to wonder, “How can I do that?””
Joe Styler serves as product manager for the aftermarket at GoDaddy.
These five tried-and-true tips for buying and selling domain names for a profit can navigate you to becoming an expert.
1. Narrow your focus Think about some of the spaces you are most familiar with and start your domain name search based on the related keywords. It is much easier to sell a domain you know would be valuable to someone in a particular industry. Understand your audience and the sales will eventually follow. You can keep a domain for 10 years before having to renew it and still sell at a considerable profit. While you are waiting for it to sell you can monetize the domain and throw in some SEO, which in turn can justify the cost to the buyer.
2. Find names that offer real value Picture someone who would benefit from buying the domain in a space you are very familiar with. If this was you and someone was trying to sell you this name, would it be beneficial for you to own? Be honest.
3. Check domain availability Now that you have narrowed down what names you should probably be buying, how do you find them? First, check to see if the names are available to purchase as new registrations. If the names are taken (as many probably will be), head over to the aftermarket to buy from people who already own the names or who let them expire because they no longer plan on using them.
4. Evaluate the price Once you have a name in mind, how do you know if the price is fair? For a buyer, if you see a domain that you HAVE TO HAVE, snap it up as fast as you can. That might mean making an offer rather than waiting for the auction to end (if that is an option from the seller). You may be able to avoid a bidding war and still get it for a price within your budget. For a seller, stay firm on a price but also open your auction up for offers above a certain price. Also look for businesses with a similar domain or businesses that would like to acquire your domain because it reflects their branding.
5. Get your domains front and center It’s important to feel confident that you will get paid and that the buyer will get the domain name they paid for. Pick a place that has good ratings with recognized bodies such as the Better Business Bureau or licensing from a trusted government source. This will make it easier for the buyer to pull the trigger on the domain purchase as well knowing they can trust the brand that is selling the domain.
All of these things will help you to be a smarter investor and make the most of your time and money. Patience and persistence are key when buying and selling domain names. Buying and selling domain names is a skill in which you can become proficient. With these five tried-and-true tips, you will soon be on your way to making profits in the domain name world.
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