TMCnet Feature
December 07, 2022

8 Steps for Selling a Domain Name and Making Money



As there are millions of websites, finding a suitable and available domain name on registrars can be challenging. Even most business owners are sometimes still having difficulties with how to purchase a domain name from scratch. To solve this, users are looking for alternatives, such as buying a domain directly from the owner.



This practice is known as domain flipping – buying domains only to sell them later. Domain flipping can be a lucrative business, especially if you’re targeting the premium domain name segment.

If you own domain names and want to start flipping them, you’ve come to the right place. In this article, we’ll guide you through selling domain names and making profits.

1. Determine Your Domain’s Value

A domain name’s value can range from a few to over a million dollars. Before starting to sell one at the market, you need to understand your domain name’s value. Otherwise, you might get scammed.

To avoid this, pay attention to the following factors:

  • Top-level domain (TLD).com, .org, and .net are the most popular TLDs worldwide. For this reason, they are usually more expensive than less-known ones like .tech and .store.
  • Domain registrars – the prices might differ depending on the registrar.
  • Keywords – domain names that have high-volume keywords will typically cost more. For example, the “lensrentals.com” domain will be more expensive than “lensrentalsinflorida.com” as it is suitable for a broader audience. On the other hand, sometimes geographic names might be more valuable – you just need to find the right buyer.
  • Length – shorter domain names are more desirable for branding as they’re easy to remember.

Use tools like Sedo to determine your domain’s worth quickly. Simply type your keywords on Sedo’s homepage to compare the pricing for similar domains.

Sedo will base the search results on previous domain purchases. Also, you may filter your search according to price range, domain length, and traffic size.

2. Set a Domain Name Price

Although some tools provide proper information about your domain, setting the price can still be tricky.

Your domain might look valuable, but the actual demand can be low. Or vice versa – someone might want to start a new project with that name. A great example would be voice.com which was sold at $30 million in 2019. However, it is not always the case.

Typically, it is hard to sell a domain with less popular keywords at an expensive cost. For this reason, it might be a good idea to set a price slightly lower than what is on the market.

Alternatively, start with the bidding strategy to assess whether people show interest in buying the domain name.

3. Update Public Information on WHOIS

Any person can find a WHOIS database, which is a complete or exhaustive collection of information about a domain. That’s why ensure your contact information is correct on WHOIS to let a potential buyer contact you directly.

You can do so through your domain registrar or web hosting provider.

4. Create a Domain Name List

The next step is to create a solid domain portfolio. When listing your domain names, include all the details like their traffic size, keywords, TLDs, and length. By doing so, you can highlight your domains’ unique values to attract prospective buyers.

Don’t forget to add your contact information so people can get in touch. Also, you might want to set up a For-Sale landing page to inform future buyers about your domain availability.

To do this with no hassle, use domain listing sites like Efty.

Efty allows you to list your domains for sale and create landing pages at no cost. What’s more, you can integrate your landing pages into escrow service platforms and marketplaces. We will cover these platforms in the following sections.

5. Add Domain Name Listing on Marketplaces

The biggest advantage of selling domains at marketplaces is the registrar's network. Some great platforms to sell domain names include Sedo, Flippa, and Afternic.

For example, your domain description page on Flippa will include your contact information, domain category, and valuable statistics for domain sellers.

Flippa has more than 1.5 million users, and its procedure for selling domains is straightforward. You just need to create an account and start listing your domains. The platform will then match you to potential buyers.

However, Flippa will charge you for each domain sale.

6. Find Your Buyer

If you own industry-specific or brandable domain names, consider trying outbound sales to reach relevant businesses.

To do that, you will need to find their contact information first. We recommend using tools like Hunter, which has more than three million users.

It will be best to contact the company owners directly with personalized emails. If you are struggling to write one, consider checking out email outreach tips and templates.

7. Sell Your Domain Names at an Auction

Another way to sell a domain name is through auction sites like GoDaddy Auctions. You can get a valuable domain name soon to expire with a low commission fee. Also, you will get a 7-day auction period.

Simply create a domain name listing and add a starting price for bidding. If you don’t wish to follow the standard auction, use the Buy Now option to sell a domain name instantly at a fixed price.

However, it comes with a membership subscription for $4.99/year. On the other hand, the selling process is usually quicker through an auction site.

8. Use an Escrow Service

When you sell a domain name, arranging payment through an authorized escrow service ensures a secure transfer process for both the seller and buyer.

The seller will agree to the terms and conditions, and the interested buyer will offer a specific price. Then, the agreed amount will be put into an escrow account until both parties fulfilled their obligations.

This practice will minimize the fraudulent risks.

Some of the recommended escrow services include Escrow.com and Vouch. However, marketplace platforms and auction sites usually offer their own escrow service.

Conclusion

With the growth of the internet, domain flipping is getting more and more profitable as it is more difficult to find a particular domain name for business or personal use.

Let’s recap the tips on selling domain names:

  • Know your domain name’s value.
  • Set a reasonable selling price.
  • Update your contact information on WHOIS.
  • Create a domain name listing.
  • Sell your domain at marketplaces.
  • Find interested buyers with outbound sales.
  • Add listing to auction sites.
  • Arrange payment using an escrow service.

We hope this article helps you understand ways to sell a domain name and make money. Good luck!



» More TMCnet Feature Articles
SHARE THIS ARTICLE

LATEST TMCNET ARTICLES

» More TMCnet Feature Articles