Do you own a domain name? Did you initially purchase them with dreams of starting a website, only to find yourself short on time or motivation and leaving your domain untouched and your domain gathering digital dust?
Well, you’re not alone. Many people find themselves in this situation and wondering how to sell domain names and make money from domain selling.
In 2021, almost 125 million domains were registered in the U.S. alone. And 26.3 million general top-level domains are currently registered.
What’s more, premium domain names have been selling like hotcakes, with some hitting astonishing figures. Take “marketing.com,” for instance, which earned $2.5 million just last year.
Unfortunately, not every domain will earn millions as marketing.com did, but with the right knowledge and tools, you can still earn a pretty amount of money from your domain investments.
Well, you can turn those domains into extra cash. In fact, selling domain names can be a profitable business if done right.
To sell a domain name with the right strategies, keep reading this article and you will definitely find your answer.
What Are Domain Names?
A domain name is actually the sequence of words and phrases that are typed into the search bar of Google and other search engines.
In other words, A domain name is like the address you type into a web browser to visit a website. It’s a simple way to find a website without having to remember complicated numbers (126.96.36.199) called IP addresses.
For this, you just need to type the words or phrases in the web browser and you will land on the website directly.
Types Of Domain Names:
There are 4 main types of domain
1. Top-Level Domain (TLD):
It is the most commonly used domain name that usually ends with .com, .org, .net.
2. Country Code Top-Level Domain (ccTLD):
Business people use this type of domain name to target a particular country. These domain names mostly collect information on the website relevant to them. These domain names end with .uk, .pk, .in, .au, etc.
3. Sponsored Top-Level Domain:
These domain names indicate that the website with sponsored top-level domain names is specific to the intended community.
These domain names are reserved for the agencies and organizations that share the common criteria. Mostly government industries and businesses owned these domain names and ended with extensions like .edu and .gov
4. Crypto Domain:
With the rise of crypto and NFTs (cryptocurrencies like Bitcoin), crypto domains have gained immense popularity not just as typical website addresses but also as convenient wallet addresses for managing cryptocurrency transactions.
Can I Make A Huge Money By Selling Domain Names?
There is probably a question rising in your mind, whether I can make a huge amount of money by selling domain names or can I start it as a business?
Yes, you can make a huge amount of money by selling domain names but it is not a quick rich scenario because it takes time and patience to reach that stage.
Understand your domain name as real estate, and making a quality and valuable domain name is like building a house and then selling it.
In other words, you need to invest a lot of time and effort, no doubt money as well, to reach that stage to sell a domain name for a million dollars.
Reality Of Selling Domain Names:
Selling domain names is not a piece of cake. And it is not necessary that you will make money from your domain instantly.
And it is also not necessary that the domain that you own is the most wanted domain for the buyers. You noticed that the kinds of domain names that are sold at high prices are usually simple ones, like single words, two-word combinations, or maybe three-word phrases in English, and they usually end in .com. These should directly relate to popular business products or services.
Now, if you’ve got domains with endings like .net, .org, or .biz, or if your domains have made-up words or phrases, I’ve got to be honest – there’s a pretty low chance they’ll sell anytime soon.
Generally, people who want to buy a domain name are newbies and have no idea about how to reach out to a domain seller like you. They also don’t know after reaching out to you, how to negotiate prices.
So if you want to find a seller who is willing to pay your targeted price, then you need to be patient and wait for the right time.
So it is usually called a domain name and not the cash in the bank.
So keep these points in mind if you want to start your domain-selling business or want to sell your digitally dusted domain name.
What To Consider Before Selling Domain Names?
Before selling a domain name, check its worth in the market. Only its worth will determine whether people will be interested in buying a domain name or not and whether it has the potential to generate profitable revenue for you.
If you are starting a domain-selling business and want to make a profitable sale, then keep in mind the underlying points:
1. Own The Domain Name That Offers Real Value:
If you want to start a domain-selling business then own the domain name that offers you real value or worth.
- First, ask a question yourself and evaluate the answer to the questions
- How much is your domain name valuable in the market?
- Is it short, precise, and easy to remember?
- Does it have the potential to generate money for you in the future?
In short, consider your domain name as a product and keep in mind the above points to assess its value.
2. Domain That Ends With A Reputable Suffix (TLD):
Pay attention to the ending part of the domain, known as the top-level domain (TLD). The most popular and widely recognized TLDs are .com and work well for all kinds of businesses.
Others are more specific and might be better suited for certain types of businesses or specific regions. And then there are some, like .biz, that have a bit of a bad reputation and could be related to scams.
So keep all points in mind to make your domain name valuable.
3. Domain Name with Keywords:
A domain name that has a high search volume keyword. A particular word or phrase that is searched highly on search engines then it is considered valuable.
Since keywords play a significant role in Search Engine Optimization. A domain name that has high-rank keywords, then it will also be sold at demanded prices.
4. Domain Name Length:
Shorter domains are more favorable and appealing because it is easy to remember and more precise. Usually, the most expensive domain names have only 5-8 characters. And usually, these domain names sell in millions.
5. Existing Traffic:
If your website has a certain traffic, then it is considered more valuable for a buyer and they are more inclined toward the website that has pre-existing traffic.
6. Set Goals:
As a domain seller, after you’ve assessed its value, it’s vital to set achievable sales goals. Avoid setting your expectations unrealistically high or too low.
For instance, if you anticipate making a million dollars from your domain, but it ends up selling for just a few thousand, you’ll be disappointed.
So consider and evaluate your domain’s real worth when finalizing the domain price. This will help you determine what you genuinely need and what’s a realistic price for your domain.
How To Sell Domain Names In Profit?
If you get the strategy of selling domain names then you can earn hundreds of dollars.
So before selling domain names first consider the above-mentioned points. After evaluating the real worth of your domain name, now I will tell you various steps that will help you learn how to sell a domain name and get the highest possible price.
- Park The Domain Name
- Assess And Search Similar Domain Sales:
- Optimize The Whois Directory For Sales
- Make A Price Strategy
- Find The Right Marketplace
- Use An Escrow Service
- Transfer The Domain Name To Its New Owner
Step 1. Park Domain Name:
Domain parking is like reserving a spot on the internet for a future website. It’s like saying, “I want this web address, but I’m not ready to use it yet.” This helps prevent others from taking it and using it for something else.
An amazing thing is that some services let you make money while your web address is parked. They show ads on a page that appears when someone goes to that web address.
So, if you’re thinking about making a business out of selling web addresses or domain names, then it is a great way to earn some cash while you’re waiting to sell a domain name.
Step 2. Assess And Search Similar Domain Sales:
As I have discussed, the value of the domain will predict how much you can make a profitable sale. For this, you can use domain name appraisal tools.
Domain appraisal tools offer a convenient and easy way to determine the potential value of a domain name. Typically, these tools base their assessments on various SEO-related factors, such as backlinks and domain authority. But these resources and tools are merely a general indicator and your decisions should not be solely on this.
It’s essential to consider additional factors beyond SEO metrics when evaluating a domain’s worth. Factors like current market trends and demographics can significantly impact a domain’s value.
Therefore, domain appraisal tools offer valuable insights, they should be used along with a comprehensive analysis of relevant factors to make final decisions about your domain’s value and potential.
Step 3. Optimize the WHOIS Directory For Sales:
Add a For Sale message on WHOIS (domain ownership record). It will convey the message to the people that your domain is for sale and they can consider buying it.
But for this, you need to add some more information to show who owns the domain. For this, add the company or your name along with “this domain is for sale”.
Like if your company name is Stones Inc then add a company name like “Stones Inc – this domain is for sale” instead of just mentioning your domain or company name.
Another way is to use a special email address that hints your domain is for sale. Like, instead of using your regular company email, you could use one like domainsales@[yourcompanyname].com.
This helps people know your domain is available for purchase.
Step 4. Make A Price Strategy:
Once you’ve figured out how much your domain is worth, it’s time to decide how you want to sell it. There are two main ways to go
- Fixed Price: In this method, you set a specific price for your domain, and if someone wants to buy it at that price, they can do so without haggling or negotiating.
- Flexible Price: If your domain name value is uncertain then use the fixed price approach. In this way, when a potential buyer makes an offer and starts negotiating it until both of you agree on a suitable price.
For a fixed price people cannot negotiate it. It means if you put the domain name for sale and the price is $2000 then people cannot ask for a lower price.
On the other hand, in flexible pricing, buyers try to negotiate. On the other hand, in flexible pricing people want to negotiate and try to lower the price but it depends on how badly they want the domain and how much negotiation was successful.
In short, if your domain name has high value then go for the flexible prices, and for low-value domains go for fixed prices.
Use a Charm Pricing:
Many times, when you see prices in stores, they end in numbers like “99$” or “98$” instead of 100$. This is a clever pricing strategy called “charm pricing,” and it’s based on how our brains work when we shop.
You can use this same strategy when setting prices for your domain names. For instance, if you price a domain at $1,999, even though it’s just $1 less than $2,000, many potential buyers will feel like it’s a much better deal.
It’s a bit strange, but it’s supported by research, and it works. Domains with charm pricing tend to sell faster, just like many other products with similar pricing tactics.
Step 5. Find the Right Marketplace:
Before selling a domain name, find the right target marketplace. Here I will discuss a few domain name-selling options.
1. Direct Approach:
In the direct approach, there is no third-party involvement. You need to create a special webpage for that domain and let the potential buyer know that your domain name is for sale by advertising on different media.
On the webpage write that your domain name is available for sale.
You can also showcase a list of other domains you’re selling, include a form for interested buyers to inquire about the domain, and provide your contact information so they can reach out to you.
2. Sell Domain Names In Marketplaces:
Another effective method for finding buyers for your domain is to register it on a well-known domain-selling marketplace (websites).
These platforms provide useful features like secure payment procedures (Escrow services), secure transactions, and an easy-to-use website, and they attract a lot of visitors, which can boost the visibility of your domain.
On a domain-selling market or website, you need to tell the price of the domain name.
3. Sell Domain Name On Auction Sites:
Selling your domains at an auction website is a smart move to attract potential buyers. It works like a regular online auction. You create a listing for your domain and set a starting price. The person who offers the highest bid wins and gets the domain.
Pro Tip: When you use auction sites, consider setting your domain’s price a bit higher, approximately between 5% to 15% more than it’s worth. This way, even after the site takes its fees or commission, you’ll still make a profit.
4. Sell Domain Name Via Domain Broker:
Domain brokers are experts who help you sell your website’s domain name. They earn money from a percentage of the sale, so they usually choose to work with domain names that can sell for a lot of money.
Every broker is a bit different in how they work, what they expect, and how much they charge. Before picking one, make sure you understand how they operate and what they’ll need from you.
Step 6. Use An Escrow Service:
The main task of escrow service is to have both buyer and seller agree to the deal and complete their buying and selling process smoothly.
The seller only gets this money once the buyer confirms that he has received the domain name and is also happy with it. So, it’s a way to make sure both sides are protected and the deal is fair.
Step 7. Transfer The Domain Name To Its New Owner:
When you’re ready to hand over your domain to the new owner, it’s crucial to stay connected and monitor the process. Even if you’re using an escrow service, you should stay attentive to what’s happening.
At this moment, you should respond to any queries related to the domain that the buyer may have. Your quick response to their queries and resolving their domain-relevant issue help you to earn a reputation and smooth the domain selling process.
In other words, being present during this stage helps ensure a smooth transfer of ownership.
Tips For Selling Domain Names:
1. Pick A Niche:
Before selling a domain name, understand the niche of your website, like, what is the field of your website? Is it related to the tech, medical, and travel industries?
The domain name that is related to the specific niche has a high value. Because these domain names are easy to remember and people can understand in a single glance on the domain name what they can expect on your website.
2. Use Banner Ads:
Design a simple banner with minimal text that includes the domain’s price and a clear call to action. This banner can direct interested buyers to your domain’s selling site or landing page.
3. Keep Your WHOIS Record Up To Date:
The WHOIS record displays important details about domain ownership, including your name and contact information. By maintaining accurate WHOIS information, potential buyers can easily reach out to you to discuss purchasing the domain.
4. Promote Your Domain On Social Media:
Create social media profiles for your domains, participate in domain-selling groups, and connect with other sellers. Regularly share useful content and engage in discussions to increase visibility and attract potential buyers.
5. Monitor the Domain Selling Transfer:
Your Domain name buyer may have some questions so remaining in contact while transferring the domain name helps to improve your reputation if you are doing business as a domain seller.
Moreover, it also helps to keep an eye on fees or commissions that may be deducted from the sale price, ensuring you know exactly how much money you’ll receive in the end.
6. Advertise The Domain’s Best Feature:
To maximize your sales revenue, try to advertise the prominent features of the website. Like if your domain name ends with .com then it earns high value.
For instance, share information like the current amount of website traffic it gets, how much money it earns from ads each month, and whether you’re also selling any associated social media accounts.
The more you display your domain features the more it will catch the eye of the potential buyer.
7. Make Realistic Price Expectations:
Many sellers do not know the real worth of the domain name and overprice or underprice the domain name and end up selling at a loss or expecting to earn a million dollars and waiting for the ideal buyers sitting for years.
So if you don’t want to wait for years then you better make realistic pricing after knowing your domain name’s real worth. Many powerful tools can help evaluate the value of a domain name.
We often hear about really expensive domain name sales in the news, like tesla.com, hotels.com, and beer.com, which sold for millions of dollars.
But it’s important to know that these super-expensive deals are extremely rare. They make up less than 1% of all the domain name sales that happen.
If you have good domain names, you can hang onto them and eventually find a buyer. However, it’s also important to be realistic.
There are millions of domain names out there that aren’t worth much if anything at all. It’s essential to be honest with yourself about where your domains fall in this spectrum.
For selling your domain name for profit keep in mind the above points, also try out different marketplaces and find out the potential domain buyer.
Frequently Asked Questions (FAQs):
How Much Can You Make While Selling Domain Names?
Well, it depends on the real worth of your domain name, the value of your website determines the price. There is no certain range and mostly a wide range of domain costs.
Mostly domain sales are in between the 3-5 figure range, while the premium level domain names are more expensive and sold in 6-7 figures.
Is Selling A Domain Profitable?
Yes, buying and selling the domain name is profitable. For this, you need to have a quality domain name and find a potential buyer who can understand your domain value and is ready to pay the demanded price.
Is Selling A Domain A Profitable Business?
Yes, selling domain names is a profitable business and you can even keep the domain name in your custody for 10 years and sell it to a high price in the future.
Before selling the domain name you can invest your efforts in the website and monetize and SEO of the domain which will be a great ROI return on investment.
How To Sell Domain Names At A Good Price?
To sell your domain for a good price, follow these steps:
- Park the domain.
- Understand its value.
- Set a competitive price.
- Pick a suitable selling platform.
- Highlight the domain’s top features.
- Use an escrow service for secure transactions.
- Stay engaged during the transfer process.
Do You Know How Some People Buy Things And Then Sell Them To Make More Money?
Well, it’s the same with domain names. Some people buy domain names at a low price and then sell them for more money.
It’s like getting something on sale and then selling it at a higher price. They look for domain names that could be worth more in the future and sell them to people who want them.
How Much Can I Make By Selling A One Domain Name?
Selling domain names can be quite profitable. Many domain traders make around $300 to $1,500 each month, and those who excel in this business can earn as much as $100,000 annually.