Articles > Making Money Buying and Selling Premium Domain Names

Buying and selling domain names is similar to investing in real estate or the stock market. If you invest and sell at the right time, you may be able to make significant amounts of profit. But it is not as easy as it may sound. Making money from buying and selling premium domain names requires presence of mind, immense patience and the skill of identifying the right kind of names that have a potential to fetch you a big profit.

 

Finding premium domain names

Any given domain name is only as much valuable as the money a person would pay to buy it. While this is the most obvious part of buying and selling domain names, it is very important to understand the true factors that render this value to the domain names.

The world of domain names is governed by SEO keywords. People often use these generic keywords for domain names in order to optimize their site and services to the search engines. As a result, keywords play an important role in determining the value of a domain name. One of the most essential things that you need to consider while buying domain names is that it should be matching any generic keyword exactly. There are also several other related factors such as the keyword ranking, extension, domain name length and keyword mix that can further elevate the value of the domain names. So make sure that you consider all such factors before buying one.

Want to find keyword-rich domain names with existing traffic for immediate registration? Try FXDomains Suggestive™ now!

 

More about domain extensions

There is no doubt about it, .COM domains are the most populair domains and fetch the highest prices in the domain name aftermarket. However, getting your hands on a good, sellable .COM domain name is very difficult, simply because most (good) .COM domain names are already registered so picking up a bargain is usually not an option.

 

So how about other extensions?

.CO domains are rapidly increasing in popularity amongst domain buyers and sellers. There are still some good names available for registration. Recent .CO aftermarket sales include XE.CO that sold for $37,500 on GoDaddy Auctions and PAY.CO that sold for over $46K.

Other more valuable extensions are:

 

  • .NET
  • .DE – extension for Germany. This is actually a very popular country extension and has seen some big sales recently like HOST.de (around $20,000) and Bankenvergleich.de that sold for over $25K.
  • .CO.UK (United Kingdom) Wholesale.co.uk went for $30,000 on SEDO.com

 

Selling premium domain names

After identifying and registering or purchasing a premium domain name, your next goal will be to make a profit by selling the domain name at a profit. This can be done using several different methods. While there is no standard procedure as such that could help you extract maximum profit from your domain name. You will have to use different strategies based on different methods to optimize profits. Here are a few of the most commonly used methods to sell premium domain names.

 

  • Domain auction

One of the most popular and easiest methods to extract profit from your domain name would be to auction it. There are several different portals that you could use to list your domain name for auction. Such domain auctions usually attract a large audience and people in such auctions will be very eager to get hold of fresh and competitive domain names. You must also make sure to price the bidding competitively to attract a larger audience and you might even see that your domain name gets sold rather quickly. Reputable auction sites also provide you with the tools to safely sell your domain name by providing escrow services. Examples of domain name aftermarket auction sites are GoDaddy Auctions or Sedo.com.

 

  • Direct marketing to end users

Through this method, you will be directly seeking out end users who might find your domain names useful. This can include people, companies and organizations that provide a service or have a product in a niche that is related to your domain. One of the easiest methods to market domain names to end users is when you possess geographic domain names. These domains usually comprise of a geographic indicator called a ‘geoterm’ that precedes any generic keyword. You can then target businesses or individuals that provide related service in the geographic location as described by the geoterm.

 

  • Listing in a private portfolio

This is the third and comparatively a little less efficient method of selling a domain name. It is usually followed by some of the reputed domain sellers. In this method, you list all the domain names along with their prices privately on a site owned by you as your portfolio. Interested parties can then look at your portfolio and contact you with offers to buy the domains.

 

So what is the most important thing?

Patience… patience and patience. There are no fixed prices for domain name – the price is what someone is willing to pay for it. So the trick is to wait (and wait) for the correct someone. The price of domain registrations is low, especially with FXDomains.com – so at least, waiting for the right buyer is affordable :-) ….