10 steps on how to succed making Money on Domain Names

10 steps on how to succed making Money on Domain Names

One of the most spoken deals in domain reselling was the sales of www.cellphones.com was sold for USD$4.2 million in cash. The original owner paid USD$90 for the name in 1996

“The secret has to do with what’s known as type-in traffic, or, in Wall Street jargon, direct navigation. Though it may seem odd in the era of powerful search engines, it turns out that millions of Internet surfers don’t use search at all. Instead, they type what they’re looking for right into the top of their Web browser.

Looking to buy candy? Type in Candy.com, a name Rick Schwartz bought in May 2002 for USD$108,000. A page filled with links to candy-related products comes up. Click on one of the ads and the advertiser pays Google, which in turn sends a share to Schwartz and the company that runs Candy.com. Some days Candy.com makes Schwartz USD$300 in profits; the site paid for itself in a year and a half. “ – via Business 2.0 CNN Money

Just to let you in on some trends in todays domain sales market is a top 10 overview from 2009 made by Domain Names News online services.

Toys.com sold for 5,100,000 USD, bankruptcy auction

Candy.com was sold for 3,000,000 USD, PVT sale

Fly.com was sold for 1,760 ,000 USD, Sedo

Auction.com was sold for 1,700,000 USD, Pvt Sale

Webcam.com was sold for 1,020,000 USD, RickLatona.com

Server.com was sold for 770,000 USD, Sedo

Talk.com was sold for 500,000 USD, Sedo

Top.com was sold for 357,500 Euro, Sedo

Body.com was sold for 400,000 USD, Sedo

Forums.com was sold for 399,999 USD, Sedo

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.

In case you want to try your hand at this, here are a few quick tips.

1. Do the research:

You will want to get a feel of what’s selling on the market and for how much. Check out prominent domain resale and discussion sites such as DomainState & Namepros for a start. I found this this forum thread on Namepros to be particularly useful as it serves as a compilation of names members have actually sold, with their respective amounts.

2. Pick the name:

When deciding on the name you want to pick keep in mind these tips:

Keep the name short and simple. Use as few words as possible Do not use separators in the domain name Buy the generic product category names Buy a .com whenever possible Don’t infringe another company’s trademarks

For more details you may want to read www.friedbeef.com/2006/10/21/8-critical-considerations-for-picking-business-domain-names/ on Critical Considerations for Picking Business Domain Names.

Another way to determine how popular your domain name might be, would be to check Overture’s free keyword suggestion tool – which tracks how popular a search term is, or Google’s own search results to see if your domain contains a highly indexed (and probably highly demanded) keyword.

3. Go Hunting:

Most registrars offer some form of a domain hunting tool to let you know if your desired domain is available. Some even provide suggestions for you if they are not. My favourite however is still Instant Domain Search which checks domain availability – as you type. They’ve even come up with a widget which I have embedded in this post so you can search for domains right from this page. (RSS/email subscribers – please click through if you have trouble viewing the widget in this post.)

4. Pick a registrar

Picking who to buy from isn’t always about who’s the cheapest. Good support, to answer any questions you may have Ease of transfer is important to avoid any delays when reselling the domain Track record is important. Search the web to see what people are saying about them. Sites like WebHostingTalk and BestHostRatings offer reviews as well. If they don’t have good support for hosting, they probably won’t have good support on domains either.

Oh yes, avoid iPowerWeb like the plague. My short experience with them was nothing less than horrible.

5. Find discounts

Coupon Codes are codes that enable you to receive discounts, and a great way to purchase domains without having to pay full price.

Check out domain related forums, and members will sometimes disclose coupon codes to help the community in general. GoDaddy.com for example, publishes coupon codes openly on podcasts. If you plan to use GoDaddy.com you can type in Chris1, Chris2, Chris3, or Digg in the coupon code section to enjoy great discounts.

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:

Earn some minor income on the side while waiting to resell your name 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 good contract with payment terms 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?

We are more than happy to help you define a strategy for how to sell your domain, and even make sure you will achieve best price for your domain. We know how to market domains, and we certainly know how to make your domain more attractive to the potential investors.

Write us at sak@ec-ba.com and we will be more than happy to discuss your sales plans. We do content management and web design, so if you need any assistance in this area as well, we are more than glad to assist you there. We work on a no cure – no pay strategy, so there are no risks involved for you. Best regards Stig-Arne Kristoffersen EC-BA W.L.L

Earn TONS Of Money From Domains!

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