If you have not heard about Domain reselling yet, then start to look into it. This niche buying and selling activity has been quite lucrative for those individuals who know what they are doing. If you didn’t know, the domain Mercury.com sold for 750K, and was probably purchased for $10/yr or so. That is a phenomenal return on your investment.
Some recent rumours have also suggested that the domain Candy.com just sold for 3 million dollars. That amount is enough to grasp anyone’s attention on this non mainstream money making method. I have been recently researching domain reselling and have found out quite a lot on the activity and some resources I will be sharing.
I recently purchased 3 domain names. The first one I aimed at selling it to a potential hookah company and the other 2 are focused on the renewable energy industry which is going to be HUGE.
1) http://www.hookahprince.com
2) http://www.windonomics.com
3) http://www.passingenergy.com
Check this step by step guide I discovered on Ehow.com which explains exactly how to get started.
Step One
You need to first understand what makes a good domain name to resell. The easiest to resell are called generic domain names. These are domains that people may type directly into google address bar to find our information about the product. For example televisions.com sold for $215,000 last year. The best way to learn what makes a good domain name is to read online and check out the domain forums listed in the resource section.
Step Two
Next you have to be realistic on what type of domain names you will be able to register starting out. The reality is very few of us have $200,000 to shell out for a domain name so we need to look a little further afield. Instead of Televisions.com what about PlasmaTelevisions.com or CheapPlasmaTelevisions.com. These are called 2 key word and 3 key word generic domains.
Step Three
Another option is to buy and resell domain name that is only partially generic. For example EliteTraining.com would be great for a training school called Elite. Just be sure you don't register any domain names to resell that are trademarked. For example Wiigames.com will get you a quick Cease and Desist letter from Nitendo.
Step Four
Try branching out to other TLD (top level domains). Most of us are use to the .com domains, but there are also .net, .org, .tv, and .us domain names. The value normally drops the further from .com you get, but for newcomers it is a good place to discover possible domain names to resell. Please realize opinions differ greatly on the value of non .com domains.
Step Five
When your first purchasing domains don't buy more than 10 starting out. They usually only cost about $7.00 through GoDaddy or other domain name registers. Limit yourself until you really understand what you need to look for in a domain name. Check out some of the sites in resources for more information.
Step Six
Once you have registered the domain names you plan to resell time to start selling. When your first starting out the domain name forums can be intimidating but they are the best place to resell your first domain names. Just get a paypal account list the domain name any traffic if there is any in the appropriate location in the forum. People will be quick to tell you if you selling it for too high a price. On the other hand if you sell it right away your probably selling the domain name for to low a price. Check out the E-how article on domain pricing in the resource section.
Step Seven
Once you have some experience pricing domains check out the major domain name marketplaces like Sedo.com, Moniker.com, Snapnames.com, etc. The links in resources can give you some places and make sure you check out DNJournal.com for the latest news and domain sales. The marketplaces tend to resell domain names at a minimum of $250 or higher so you need quality domain names. They also take a cut normally 10% but this includes an escrow service normally which is good thing to have for higher end domains.
Step Eight
Finally try selling to an end user. Whenever you resell a domain name to another domainer you lose 20%-30% of what you would have made selling to an end user. For example a Vienna car dealer will pay a lot more for Viennacars.com than another domainer. Just watch out for trademark issues. You can contact potential end users by e-mail, in person, or even good old snail mail.
Step Nine
Once you have successfully resold some domain names then invest a little more time and money. There is nothing like finding that diamond in the rough that gives you a 100 times return on your initial investment. Most of all study and check out other domaining sites.
Resources
* MiscDomains.com - Choosing Domain Names
* Godaddy.com Domain Name register
* DomainState.com forum on Domain Names
* How to Park a New Domain Name
* Sedo.com marketplace to sell domain names
* Moniker.com another domain name marketplace
Source: http://www.ehow.com/PrintArticle.html?id=4834585
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