CEO of VPN.com. We help brands, entrepreneurs, politicians and athletes acquire premium domain names for their vision.
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The first step in selling a domain name is owning a valuable domain. You might pick up great domain names at less than their market value at an auction, or you may have old domain names that have no more use for you. Alternatively, you might seek out premium domain names with the hope of making five-, six- or even seven-figure profits. Either way, you’ll only be able to make the sale if you own a domain name that someone, somewhere wants to own.
Own Domain Names That Offer Real Value
Understanding the value that a domain name has is one of the keys to evaluating it properly and giving yourself a shot at making a sale. While putting a value on domain names can be difficult, you can use the concept of brandability as a guiding light. In short, how easy is it for a company to use in their marketing? How memorable is it? Is the name simple for customers to type into a search bar if they only read it once or briefly hear it? An otherwise perfect domain name might become worthless if there’s a spelling problem that results in potential visitors forgetting it.
Besides that, keep your eye on the top-level domain (TLD) — the suffix that sits at the end of every domain name. Some are good for all purposes, such as the .com extension, while others are suitable for specialized businesses or region-specific companies. Others are just bad, such as the .biz extension that can be associated with scammers.
If your domain names are good, then you can hold onto them and make a sale in time. However, the opposite is also true; there are millions of domain names that no one would pay anything for, and you should admit it to yourself if your domains fall into this category.
Set Realistic Goals
You need to have a target price in mind for your domain names that you’ve based in reality. Once you understand the idea of brandability, look for domain names that you assess as being of similar quality. At this point, the main obstacle in your path is being honest with yourself and not giving in to the desire to overstate it.
Different Ways To Sell Domain Names
There are essentially two ways to sell a domain name, although the second option encompasses a handful of different but related methods. Your first choice is selling entirely privately without so much as using a registrar website such as GoDaddy. If this is the path you want to take, then you’ll need to handle your own advertising, arrange a secure payment method and handle negotiations on your own. While you can outsource all of this to a third party, this comes with a considerable commission fee.
• Sell your domain name privately. The good news is that it’s not actually so difficult to sell domain names on your own, though it requires some measure of technical knowledge. Your advantage is that the perfect customer is already looking for you, and all you need to do is put in a bit of effort to help them find you. When someone decides they want to buy a domain name, the first thing they do is put it in their search engine of choice.
Since you already own the domain name, design a rudimentary web page or hire someone to do this for you. It can be extremely basic since the only thing you need to do is communicate that the domain name they want is up for sale. Include your preferred contact information, and you’re ready to go — although you’ll have to handle the negotiations and set up a secure escrow payment method on your own. While this entails some fees, it’s an absolute necessity when dealing with a considerable amount of money.
• Sell your domain name on a registrar website. Selling a domain name on a registrar website like GoDaddy is simple, and it can give you the benefit of the registrar’s considerable web traffic, complementary escrow and easy-to-use interface. All you need to do is access the domain manager and list your domains for sale after setting a price for each. However, the drawback to this is that the registrar can charge hefty fees without providing you all that much value besides a great deal of convenience.
• Sell your domain name via a domain broker. One potential is turning to a domain broker that can offer much more value with services such as price evaluation and finding and negotiating with buyers. Most brokers charge a flat commission rate of 10% to 20% upon the completion of a deal. While this fee is higher than selling on your own, the hope is that a professional broker can help you get the best value for your domain with the least amount of work on your part. However, you need to make sure that you always exercise due diligence when selecting a domain broker to ensure a successful experience.
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