Friedbeef’s Tech

In our last post we covered tips concerning the picking and purchasing of domain names for speculative purposes. In this post, we will cover the process of reselling the domains for a profit.

Let me state once again that domain speculation is one of those online money making activities you can try for fun, but the risk is high, and success rate is relatively low, so don’t expect to quit your day job anytime soon.

6. Decide on a price

Just like most other online sales – there is no real market price for your domains. Everything runs on the most basic ‘willing buyer, willing seller’ premise. Of course if you feel your domain names are sought after, you can hold out for better prices.

To help you decide on a price, you can use:

• Past sales – Take a look what people are selling their domains for.
• Free Appraisals – Take a free appraisal. This may not be terribly reliable, but would at least give you a rough indication of what to expect. Try Leapfish as an example.
• Professional Appraisals – Some sites offer professional consultation, which is more expensive, but important when dealing with big money names. Try Sedo for professional help.

7. Park or Develop

What do you do with the site while waiting for a buyer? You can either put some content up, or simply park it. Parking your domain will create an instant page of advertising listing where are generated based on the domain name. For example, a shampoo related domain name would have shampoo ads on it.

Domain Parking accomplishes 2 things. It lets you:

1. Earn some minor income on the side while waiting to resell your name
2. Gauge whether you should even sell it in the first place! Some names are popular enough that they pay for themselves via advertising (when people click on the ads).

8. Advertise

Let the world know you are selling your domain. Try posting your list on domain forums like Namepros, domain reselling specialists like Sedo, or even eBay. When describing the domain, create a compelling argument as to why it is worth the money you’re asking for. For example, is it a popular search term? Is it short but memorable name? Is the name useful for commercial purposes?

9. Negotiate the deal

Here’s where your research you did earlier gives you an idea of what type of prices to hold out for. Here’s a tip. Don’t wait until your domain expiry is approaching before starting to lower your prices. It puts you in a desperate position if you don’t plan to renew it.

10. Sell Sell Sell

Wherever possible, ask for cash first before transferring. Try using an escrow service such as Sedo or Escrow if it makes both parties more comfortable. The commission may be a bit high, but it may be worth the peace of mind especially with pricey domain names.

And there you go… 10 steps which should walk you through the whole selection, buying, and selling process. What other tips do you have?

Happy domain hunting!

Read Part 1 for more tips