Most people don’t consider buying a domain name until their business is set up and ready to go. But did you know that you can actually make a business out of buying and selling domains?
That’s right. Some of the top domain names that have been sold include LasVegas.com for $90 million, CarInsurance.com for $49.7 million, and Insurance.com for $35 million. Yes, million.
Even if yours doesn’t bring in six digits, other domains have still been sold for reputable amounts, like Military.com and Rebate.com, both of which were sold for $500k.That’s more than most people make in years.
If this business idea interests you, here’s how it works:
Step 1: Create a List of the Domains You Want to Buy.
This first step is to come up with a list of domains that you want to buy. Though you could do a blanket list and buy a bunch of random names, because you want to come up with domains that others will potentially find value in, it helps to put a little thought into the process instead.
For this reason, it might be best to start with areas that you have some interest or experience with. If you know a lot about trees or birds, for instance, then those would be some good domains to target because you’ll have a better idea of which ones could potentially bring in a higher price than others.
Or, if you spent five years working in the energy field, consider the domains that may appeal to companies entering this industry. Use your knowledge to help you come up with as complete a list as possible.
Step 2: Research Availability.
Once you have your domains in mind, the next step is to research whether or not they are even available. If they are, great! You’re ready to move on to step number three.
If not, consider whether there is any way you can slightly alter or modify the name to still make it work. For example, would adding a period or dash work? What about abbreviating a word?
Step 3: Research Potential Price.
Step three involves taking the domains you want and researching how much they could potentially be worth. You can do this online, by using websites designed to provide domain sales information.
One piece of information provided on these types of sites, beyond domain name and the price it sold for, is the date of the sale. This is important because it tells you whether that name was recently relevant, or if it could possibly be past its prime.
Step 4: Buy the Domains.
Okay. So, you’ve got your list of names, they’re all available and you think you could make some money off of them. This takes you to the next step, which is to buy the domain name. Of course, if you have many domains lined up and ready to go (which you should!), buy them in bulk to get even better prices.
Step 5: Market the Domains.
You can have the best domains in the world, but if no one knows you have them, it doesn’t do you any good. That’s why you want to market the domains you’ve purchased, letting others know that they are, in fact, for sale.
Some ways to do this include:
- Listing your domain with a domain selling service.
- Hiring a domain broker.
- Using a domain auction service.
Step 6: Make the Sale.
Once you have an interested party, now is the time to make the sale. This involves responding quickly to their inquiry and coming up with an agreeable price for the domain, potentially negotiating with the buyer as part of the process.
Though some domains may never be purchased, all you need is to come up with one good name to earn a six-digit income. Or more.