A great domain name helps businesses succeed online. As a result, companies may be willing to spend big if it means getting their ideal domain name. For investors, this offers an opportunity: If they’re able to buy in-demand names, they could potentially sell them for significant profit.
This practice, often referred to as domain flipping, involves purchasing domains at a lower price and later selling them to an interested buyer or potential buyer at a profit. Many domain investors search for the valuable domain name that tends to perform best on the domain market. How does this process work? What do potential domain investors need to know about picking the right domain names, setting the right prices, and generating buyer interest?
In this piece, we’ll dive into six tips on how to buy and sell domains and answer the burning question: Is buying and selling domains profitable?
Six tips on how to buy & sell domain names
Domain brokers and domain marketplaces are great resources for both domain buyers and domain sellers. Brokers connect sellers with the right buyer, negotiate deals, and manage the domain transfer for a successful sale. Marketplaces, on the other hand, offer platforms where sellers can list domains and a prospective buyer can browse for the perfect domain.
While it’s possible to simply buy a domain name and hope for the best, this approach is hit-or-miss. For example, if you managed to purchase the golf.sport domain, chances are you’d have plenty of interest from companies looking to capitalize on this pairing. As a result, you could sell this domain for a substantial profit.
If you end up purchasing a domain such as golf.business or golf.boutique, meanwhile, interest may be more specialized. This doesn’t mean you can’t make a profit — it just means you’ll have to put in more work to get the return on investment (ROI) you want.
Here are six tips for buying and selling domain names to help streamline the process.
1. Decide on a focus area
First on our list of tips for buying and selling domains is finding a focus area. This could be a specific industry or a product niche — any market that offers multiple paths to profit but is narrow enough for focusing your attention.
Consider our domain name — Name.com. The domain speaks to exactly what we’re about, it’s simple, and it’s easy to remember. When it comes to purchasing domain names for resale, that’s the trifecta: Clear, simple, and easy to remember.
2. Check domain name availability
Next up is checking domain name availability. The sooner you do this, the better — if the domain name you want isn’t available, your plans need to change.
First, search available domains to see what’s out there. If you don’t find what you want, it’s worth checking aftermarket domains to discover if there are any premium or expiring domains that meet your criteria.
3. Focus on domain names with value
Value drives the process of buying and selling domain names, but what’s valuable and what isn’t worth your time?
Here, market trends can help. What searches are trending? What products are in the news? The more you know about what’s capturing consumer interest, the better you’re able to predict which domain names will be profitable
4. Evaluate the price
If you’re purchasing or selling a domain, you need to find the right price point.
Let’s say someone is selling the golf.sport name mentioned above, but it’s not cheap. Here, market research can help assess potential ROI. Domain appraisal services may also help you estimate a domain’s worth based on factors like length, keyword relevance, and domain extension—for instance, shorter domain names or those with popular extensions. This isn’t just about growth but also the rate of growth: Is there enough interest in the market that purchasing the domain at the listed price still leaves room for profit?
Sellers must also consider their ideal price point. Too high, and you may not get any offers. Too low, and you could be leaving money on the table.
5. Work with a trusted provider of domains
Not all domain resellers are above board, and if you pay a company for a domain they don’t own, you may lose on both counts: You don’t get the domain, and getting your money back may be difficult. Working with a reputable domain provider, meanwhile, offers the peace of mind that you’re getting what you pay for.
6. Promote the domains you are selling
Simply sitting on the domains you own and waiting for someone to make an offer limits your potential ROI. Instead, it’s worth taking the time to promote your domains across your market and industry focus areas to let businesses and other investors know that you’re holding a hot property.
Is buying and selling domains profitable?
It can be — with the right approach.
When it comes to buying domain names, it’s all about doing the research. This means pinpointing names with potential value and — if they’re already owned by someone else — assessing their price against possible ROI.
On the sales side of domain investing, market forces dictate when and where it makes the most sense to sell. For example, if you manage to purchase newly available domain name suffixes, you may be able to tap into market trends and make a significant profit. It’s also worth noting, however, that domain name prices continually fluctuate. In practice, this means that a domain worth big money a month ago could see a sudden value loss. Much like owning land, however, the market typically rights itself if you’re willing to wait.
Delivering domain success with Name.com
What’s in a name? When it comes to buying and selling domains, everything. Finding a name that’s relevant to your target market, and shows signs of increased demand can help drive interest among buyers and boost potential sales prices.
Given the sheer number of domain name options in the list of all TLDs, and the increasing amount of available domain suffixes, however, this can be a daunting task. Best bet? Start with Name.com. From a massive list of available domains, to curated results for memorable names that can help capture buyer interest, to easy aftermarket access, we can help you buy and sell domain names — better.